DALLAS — The Dallas City Council voted Wednesday to commit $11 billion over 30 years to shore up the city's pension fund for first responders, ahead of a November deadline to submit its funding plan to the state.
The plan passed 14-1, despite a last-minute objection from the Dallas Police Association.
“I am disgusted and angry beyond belief to hear what the city pension plan proposal will be,” said DPA President Jaime Castro, who said he found out Tuesday that the city was changing course on its plan to provide additional money to retirees to make up for inflation.
In response, Mayor Pro Tempore Tennell Atkins, who heads the council committee tasked with revamping the plan, promised the city would not let down its retirees.
“I truly believe everyone around this horseshoe understands public safety is number one,” Atkins said. “Trust us.”
The need for a plan to build the police and firefighter retirement fund back up comes after the Dallas Police and Fire Pension System reportedly nearly ran out of money in 2016. Pension officials cite bad real estate investments and a “run on the bank” as the causes of the 2016 issue.
A point of contention between the pension system and Dallas officials has been who will get to approve the final plan, which impacts more than 10,000 current and retired first responders and their families, according to a DPFPS news release.
The fund has sued to ask a judge to decide whether the city or the fund itself gets to have the final say on the plan.
“I hate that they took this move,” said Councilmember Gay Donnell Willis, who implored retirees in the council chambers to take their frustration to the pension system – not city hall. “Ask why they chose to file this lawsuit,” she urged.
The multi-billion dollar commitment will be a heavy burden for the city to bear, although Dallas said it is trying to strategically save money without sacrificing services.
“It's sort of like digging in the couch cushions, you've got to find money wherever you can,” Councilmember Chad West told Inside Texas Politics. “It's coming from making cuts in the city, hard cuts in the city.”
The city’s proposal approved Wednesday does not include a cost-of-living increase for retirees – who have not received one since 2017.
Initially, Dallas planned to offer an annual stipend in years when the fund had a positive rate of return, but the city took that off the table following the lawsuit filed by the pension fund.
“Due to pending litigation filed by the DPFPS board, the city’s plan complies with the requirements of state law but provides no supplemental pay,” a release from the city said. “Future consideration may be given to components that go above the base requirements.”
“It’s disappointing, I’m sure, for the retirees because they feel like they deserve it and they earned it,” said DFD Lt. Jeff Patterson, who serves as the Dallas Firefighters Association President. “Everybody knows the cost of living has gone up.”
Without the stipend or a cost-of-living increase, Castro of the Police Association said, “I cannot in good conscience advocate for this department.”
Councilmembers said they are committed to providing the stipend – and said they would put the money aside to do so, once the litigation concludes.
“We’re not trying to play any games with you guys, we’re not trying to hide the ball,” Mayor Eric Johnson said before the vote. “We will be able to make that commitment that those finances can’t be redeployed to other purposes.”
He told retirees they could put him down as the worst mayor in city history if the promise is not kept, assuring them that it would happen.
Following the decision, Mayor Johnson released the following statement:
“When Dallas makes a commitment, we keep it. We have promised to take care of both our retired and active first responders, and we will keep that promise. Today, we approved a plan to fully fund the Dallas Police and Fire Pension System that honors the men and women who have dedicated themselves to keeping our city safe. Public safety is and will always be my number one priority.”