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Dallas Council approves $11B pension deal
The Dallas City Council approved an $11 billion, 30-year funding plan and legal settlement for the underfunded police and fire pension, but the agreement's fate depends on a final vote by the pension board on Thursday.
DALLAS - The Dallas City Council on Wednesday approved a 30-year funding plan aimed at stabilizing the city’s troubled police and fire pension system and agreed to settle a long-running lawsuit with the pension board.
But the plan cannot move forward until the pension board votes on it Thursday morning.
$11 billion commitment
What we know:
The agreement commits the city to contributing $11 billion over three decades to shore up a fund that is estimated to have a $3 billion shortfall. It also lays the groundwork to end litigation that began in 2024 over who has the authority to finalize the pension’s funding framework.
The city has argued that it must approve any funding plan because it is responsible for making taxpayer-supported contributions. The pension board sued last year, asserting that state law gives trustees the exclusive authority to adopt a funding structure without city-imposed modifications. A Travis County judge sided with the board, and the city appealed.
Wednesday’s council vote included one dissenting vote from Council Member Ridley but otherwise passed easily.
Police union cites shortfall
What they're saying:
"When both parties agree to this funding agreement, it will end years of uncertainty and resolve longstanding disputes that have weighed heavily on the pension system," Council Member Kathy Stewart said.
Police association warns of staffing crisis
Dig deeper:
The Dallas Police Association criticized the plan, saying it does not inject enough money into the system and could worsen staffing shortages within the Dallas Police Department. In a written statement, DPA President Jaime Castro said the proposal "woefully underfunds the long-term viability of the pension," adding that inadequate benefits could push more officers to leave, increasing response times and weakening neighborhood coverage.
Other groups representing police and fire retirees said they would wait to comment until after Thursday’s board meeting. The Dallas Firefighters Association did not respond to requests for comment.
Eyes on the pension board
What's next:
The pension board is scheduled to meet at 8:30 a.m. Thursday. If trustees reject the agreement, city officials and pension leaders may be forced back to the negotiating table with no clear timeline for when a revised plan might emerge.
The Source: Information in this article was provided by FOX 4's Casey Stegall.