The city of Dallas has settled on a plan to remedy billions in unfunded police and fire pension liabilities. The plan, which will be sent to the state鈥檚 pension review board in early November, includes budgeting for a "one-time" stipend for retirees.
But it's up to the council when or if those funds are issued.
City staff's recommended plan originally factored in the stipend without council approval. That was before the Dallas Police and Fire Pension System tried to submit their own funding plan to state regulators 鈥� and then sued the city.
Council members said during Wednesday's meeting that the plan with the stipend approval, factors in the uncertainty caused by the pension fund executives.
鈥淭he way this has been structured is in a way that takes into account the fact we鈥檝e been sued, by what is supposed to be one of our partners,鈥� Dallas Mayor Eric Johnson said during the meeting. 鈥淲e want to make sure we are not getting out of line in terms of what we may, or may not be, required to do at some point.鈥�
Johnson said the city would get the job done 鈥� and added he would 鈥渞ather not be the mayor of this town than to break a promise鈥� to the public safety retirees.
Jaime Castro, the president of the Dallas Police Association, voiced outrage over the changes made to the plan, before the council voted on it.
鈥淚鈥檓 disgusted and angry beyond belief, to hear what the city pension plan proposal will be,鈥� Castro said during Wednesday鈥檚 meeting. 鈥淲e were asked to work in good faith with both sides, and we did.鈥�
Castro said what happened in 2017 鈥� when the Texas legislature had to step in to help keep the fund afloat after risky real estate investments nearly caused the system to collapse 鈥� was a 鈥渂rutal drag-down war.鈥�
He said if the plan was approved by council 鈥� it would 鈥渆ssentially redeclare a pension war against all first responders.鈥�
鈥淚 cannot, in good conscious, advocate for this department, if this plan passes,鈥� Castro said. 鈥淭he message will be clear: If you don鈥檛 need a raise in 22 years after you retire, in today鈥檚 economy, the city of Dallas is for you.鈥�
Elected officials thanked those who showed up to advocate for the pension system 鈥� and told them to direct that same energy toward the pension fund's board.
鈥淵ou can keep emailing council members but you also need to email your fund鈥檚 staff and board,鈥� District 13 Council Member Gay Donnell Willis said. 鈥淧ress your board and staff to set egos aside and work on ways to improve results.鈥�
Willis said the fund鈥檚 board is moving slow and it 鈥渄oesn鈥檛 sound like they鈥檙e open to the expertise of others.鈥�
鈥淒oesn鈥檛 that concern you?鈥� Willis asked. 鈥淚t concerns me.鈥�
District 12 Council Member Cara Mendelsohn was the only council member to vote against approving the city鈥檚 plan. She has been vocal about the need to increase benefits and cited concerns over police and fire recruitment 鈥� and retention.
鈥淪ince 2017, before nearly everyone around this horseshoe was elected, city staff knew this day was coming,鈥� Mendelsohn said. 鈥淪o I don鈥檛 understand why we aren鈥檛 financial prepared.鈥�
Mendelsohn said the city should be able to immediately start paying the actuarial determined contributions 鈥� instead of a five year 鈥渟tep-up鈥� period recommended in the city鈥檚 plan.
Ultimately, the council voted 14-1 in favor of the plan with most members voicing their support and noting actions taken against eh city by the fund鈥檚 executives. The plan is due to state regulators on November 1.
Got a tip? Email Nathan Collins at ncollins@kera.org. You can follow Nathan on Twitter .
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