Dallas Police & Fire Pension System Statement in Response to Dallas City Council Resolution

January 25, 2017

The city of Dallas has a long, expensive and unsuccessful track record of litigating disputes rather than
working with others to resolve conflict. Even now, city officials are begging the Legislature for sovereign
immunity to save the city from a potential $4 billion liability from back-pay lawsuits dating back to the 1990s.
Most of the accusations in the City Council resolution are related to decisions and actions by a previous
Dallas Police & Fire Pension System board (DPFP). Other than in recent history, Dallas City Council
members on that board rarely, if ever, bothered to attend any meetings. The new DPFP leadership
started in 2015 and has worked closely with city officials, members and the public (through the news
media) to provide transparency into DPFP.
The new DPFP leadership had been making real progress until Mayor Rawlings and other city officials
helped create a panic in 2016 among police and fire retirees. The Mayors litigation and bankruptcy
threats helped create a $500+ million run on the pension fund and led to mass retirements of senior police
and firefighters. The Mayors December lawsuit against DPFP timed to occur when members were
voting on significant cuts in benefits played a large role in defeating the proposal for benefit reductions.
That plan would have reduced DPFPs funding shortfall significantly.
Through its glitzy PR and marketing campaign, the city states its intention to provide a secure and stable
retirement for Dallas first responders. But the citys latest proposal in the pension debate would strip
constitutionally protected benefits from all current retirees and most of the active Dallas police and
firefighters. These dedicated first responders have devoted their lives to serve and protect Dallas
residents, workers and visitors. Already underpaid in comparison to other cities in Texas, Dallas first
responders have no social security and no safety net. And if the city gets its way, the majority of them
will have no retirement or one that only lasts for a few years.
Under the citys plan presented on January 18, Dallas first responders become a cost-reduction target.
The city's new contribution rate would be significantly less than any other major city in Texas and
approximately half its current contribution. Meanwhile, the city proposes that Dallas police and
firefighter contributions increase 55 percent over the current rate, resulting in employee contributions
higher than nearly any other major city in Texas.
The citys proposal clearly fails the Legislatures goal of shared sacrifice by placing the bulk of the
burden on the backs of police and firefighters. Under this proposal, nearly 7,300 pension members
would be stranded in a pension plan abandoned by the city.
Based on the City Council resolution from todays meeting, it appears that the city will continue to
litigate to try to get its way. Efforts by the new pension board and the city to present a unified bill to
state legislators have all but collapsed as a result of the citys resolution. But the Dallas Police & Fire
Pension System cannot support any plan that leaves a single retiree or future retiree without a
retirement. We will continue to work with Texas legislators on an equitable and legal solution that
provides a secure and stable retirement for Dallas' first responders.