​The City of Dallas is committed to the long-term financial soundness of the Employees' Retirement Fund (ERF). Recent improvements to ERF will net more than $2 billion in savings through 2055.

Overview of ERF

• Origin and Purpose: Established in 1944, the ERF is a trust plan providing retirement, disability, and death benefits to permanent civilian employees of the City of Dallas, exclusive of Social Security.
• Plans: A single-employer defined benefit plan, ERF offers benefits based on a member's salary, service credit, and age at retirement.
• Investment Approach: ERF adopts a conservative, long-term investment strategy with assets managed by a Group Master Trust.
• Governance and Financial Management: Governed by a 7-member board, with responsibilities including fiduciary oversight and implementation of strategic initiatives. Regular meeting agendas and minutes are publicly accessible.

ERF Funding Status as of June 30, 2023

• Funded Percentage: 73.1% (Actuarial Value).
• Total Actuarial Accrued Liability: $1.41 billion.
• Market Value of Assets: $3.605 billion.
• Unfunded Liability: $1.41 billion.
  
• Assumptions: Conservative investment returns, city hiring plans, and demographic factors.

Contribution Rates and Plan Changes

• City Contribution Rate (2023): Determined by actuarial valuation.
• Employee Contribution Rate: Varies by tier and hire date.
• Paid Benefits: Average annual benefit payout of $39,395.
• Historical Plan Changes: Notable reforms include the 2015 FSRP, Tier B for new hires post-2017, and legislative changes in 2023 to meet state guidelines.

Required Future Actions

• Analysis & Changes: Ongoing compliance with state legislation, regular actuarial analysis, and adjustments to funding and amortization periods as mandated.
• Adopt a Revised Funding Plan: Proactive measures in line with actuarial recommendations and state requirements to ensure long-term solvency.

ERF Board's Actions Since 2015

• Implementing Reforms: Steady fulfillment of FSRP requirements and Tier B implementation.
• Portfolio Management: Regular evaluation of investment strategy, manager performance, and asset allocation.
• Risk Management: Establishment of reserves and liquidity strategies to mitigate market risks.

Recommendations for Sustainability

• Adjust Contribution Rates: Ensure contributions are in line with actuarial determinations to support the plan's funding.
• Strategic Funding Initiatives: Evaluate and potentially implement additional funding mechanisms.
• Maintain No Adjustments to Benefits: Prioritize the preservation of promised benefits to members without reductions.