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The Dallas Police and Fire Pension System board on Thursday revealed its plan to save its troubled fund.
A series of bad real estate deals and payout commitments have drained the pension fund. The problems with the fund are so dire, the fund is projected to be insolvent in less than 15 years.
A subcommittee of two fire fighters, two police officers and two city council members came up with the proposal to try to recoup a billion dollar loss due to a combination of bad deals.
“Essentially it's going to be an increase in contribution for members,” said Dallas councilman Scott Griggs. “It's going to be a decrease in benefits as well as the other portion of it will be money from the city of Dallas infused into the system.”
One board member said a more conservative, risk averse investment strategy is one part of making the money back. But Thursday afternoon's meeting was really about what will have to change to make to keep the pension healthy and sustainable.
“There's significant pain for everyone. Enough to go around for everybody,” said Sam Friar, Board Chairman & firefighter.
Some on the board worry the plan will not be well received by Dallas police and firefighters. Union leaders say they'll have question and answer sessions for the rank and file with pension board members so they can get answers straight from the source.
The idea is to hold a vote over the next month and get a plan implemented by October.