Dallas Police and Fire Pension Troubled With Deficits
The City of Dallas and the pension board are unable to agree on how to remedy the Dallas police and fire pension deficit. According to a Dallas news release, the pension is facing a $3.4 billion shortfall.
On Wednesday, a consultant hired by the city council to examine strategy and returns on pension investments, revealed a primary culprit of the deficit being related to private equity investments made several years ago, with results still affecting current numbers. The City of Dallas reports it plans to pour $11 million into the pension over the next 30 years. If the city and pension board do not agree on a plan, the pension board takes precedence, unless state lawmakers pass a new law.
In an effort to enhance transparency, the city has also added a new information hub on its website. “It’s crucial that our residents, as well as those who have devoted their careers to serving Dallas, have direct access to reliable information and updates about the pensions,” Mayor Pro Tem Tennell Atkins, the chair of the Ad Hoc Committee on Pensions, said.
The outside consultant hopes to improve communication between the parties, a lack of which landed both sides in court recently. In the meantime, retirees remain stuck in the middle, with few answers to their increased cost of living and dwindling funds.
