Dallas Police and Fire Pension System wins lawsuit brought by retirees
The Texas Supreme Court on Friday upheld a major part of the plan to save the Dallas Police and Fire Pension System.
The court upheld restrictions on the interest rate for drop distributions. The Deferred Retirement Option Plan (DROP) system allowed police and firefighters to work past retirement, with their benefit checks going into an interest bearing account.
Pension administrators put limits on drop accounts to keep the whole system from going broke.
Friday’s ruling rejected the argument from some retirees who brought the lawsuit that those limits are unconstitutional.
The pension system serves 9,300 Dallas police and fire personnel.