A dispute over how to fund Dallas' Police and Fire Pension System to comply with a Texas law aimed at solvency has been resolved.
A funding agreement was approved last week by the city council and last month by the retirement system's board of trustees. As a result, the
The board filed a lawsuit in 2024 after it and the city adopted dueling 30-year funding plans to comply with a deadline set by a 2017
"The funding agreement provides for possible supplemental payments to retirees and beneficiaries," a board statement on Thursday said. "It is expected that the board will consider these supplemental payments early next year."
A statement from the city said that while state law does not authorize cost-of-living adjustments until the system reaches 70% funding, "the interim stipends recognize the ongoing service and sacrifice of Dallas' police officers and firefighters."
"This funding agreement marks an important milestone in securing a balanced and sustainable path forward for the pension system," the statement added. "It fortifies DPFPS's financial foundation and outlines a clear roadmap toward full funding within 30 years, meeting the requirements established by state law and the Texas Pension Review Board."
The Texas law was spurred by the city's projection that the system, which then had an unfunded liability of nearly $3.7 billion,
The public safety retirement system's funded ratio was 32% on an actuarial value of assets basis and the unfunded accrued liability was $3.9 billion as of Jan. 1, 2024, according to
