Dallas Pension Crisis Deepens as Board Votes on Controversial Plan

UPDATE: The Dallas Police and Fire Pension Review Board has just voted 6-5 to accept the city of Dallas’s controversial “best and final” pension plan, triggering outrage among first responders and raising urgent concerns about their financial security. The vote, which took place on November 12, 2023, is perceived as an attempt by city officials to undermine ongoing litigation regarding the pension fund amidst a critical funding crisis.

Trustee Rob Walters initiated a surprise motion that many believe is designed to sidestep a pending federal court appeal in El Paso concerning the legitimacy of the pension plan currently submitted to the state. The legal dispute centers on whether the city’s plan or the board’s proposed plan should dictate the future management of the pension fund, which is currently only funded at 32%—a stark decline from 45% in 2018.

The Pension Review Board was established to protect the interests of retired police officers and firefighters. However, board members appointed by first responders claim that the city has manipulated the voting process to force an unfair agreement. “This is a farce. The city is attempting to push through a plan that undermines our pension security,” said trustee Tina Hernandez Patterson, who serves as deputy vice chair of the board.

The pension system has faced significant funding challenges for years, with a state-mandated requirement to submit a viable plan by late 2024. In a bid to negotiate a sustainable solution, the board and the city engaged in a two-year discussion, which now appears to have broken down completely. “We have already worked out a plan and submitted it to the state. The city’s new proposal is simply a distraction,” Patterson added.

The board’s decision is viewed as an alarming tactic that may mislead the courts into believing there is a cooperative agreement in place. “We believe the city is worried it will lose in court. Their strategy is to create the illusion of consensus while we are still at an impasse,” Patterson noted.

Critics argue that the city’s plan lacks crucial elements necessary for the long-term health of the pension fund, potentially jeopardizing the futures of countless first responders. “No prudent person would accept a far lesser plan than what we proposed last November, which is currently the law,” Patterson stated.

The implications of this ongoing conflict are severe. Active members of the pension system, who have borne the financial burdens since 2017, remain in the dark about the specifics of the city’s plan. This lack of transparency has led to outrage among police and fire personnel, who feel their needs are being sidelined.

“Without a fair resolution, we risk losing experienced officers to other cities, which will impact public safety,” Patterson warned. The city has had seven years to address this funding crisis, yet it has made minimal contributions to the pension fund, exacerbating its dire state.

As tensions rise, the focus now shifts to the El Paso courts, where justices are deliberating on the appeal that could dictate the future of the pension system. “It is critical that the justices render a judgment because without an enforceable plan, we are left in limbo,” Patterson concluded.

The Dallas Police and Fire Pension Review Board’s decision is a pivotal moment in the ongoing struggle for financial security for first responders. As this situation unfolds, it is essential for the community to stay informed and engaged in this vital issue impacting public safety and the welfare of those who serve.