A LETTER FROM THE CHAIRMAN
OF THE AD HOC COMMITTEE ON PENSIONS

Dear taxpayer,

Thank you for visiting this information hub dedicated to our commitment of fully funding the Dallas Police and Fire Pension System (DPFPS) and the City of Dallas Employees’ Retirement Fund (ERF) over the next 30 years. As the Chair of the Ad Hoc Committee on Pensions, it is my honor to inform you that we’ve put forward a plan that goes above and beyond state-mandated legislation.

After nearly a year of thorough analysis and extensive collaboration with financial experts, state-level elected officials, civic leaders and our dedicated staff, our recommendation ensures the long-term stability of both pension systems without compromising our ability to meet current and future needs.

Currently facing a $3.4 billion shortfall, we are ready for the DFPS to agree to our funding plan that lessens the sacrifices of our taxpayers and active-duty first responders.

More about that from The Dallas Morning News.

And despite constraints to increase revenue, we will leverage our general fund that supports day-to-day city operations.

Here’s what we’re ready to do.

  • Contribute more than $11 billion over a 30-year period, with a five-year step up to an actuarially determined contribution.
    • That’s about $1 billion in the first five years.
  • Offer one-time 1% increase to retirees’ base pension in 2025.
  • Determine the potential for an annual 1% stipend beginning in 2026, dependent on a positive fund performance, until the pension system achieves 70% funding.

We are also committed to a market-pay increase of 7.23% for active-duty first responders who work to keep us all safe. On behalf of all our retirees, we are advocating for better governance and investment strategies to improve the performance of their valuable retirement funds.

We encourage you to remain engaged. Delivering our recommendation to Texas Pension Review Board by November 1 is important for you and our retirees.

A collective effort ensures that we meet our obligations while safeguarding the fiscal health of Dallas for generations to come.

Sincerely,
Mayor Pro Tem Tennell Atkins
Chairman of the Ad Hoc Committee on Pensions

We are in it together

Photo of Ad-Hoc Committee on Pensions members meeting

  • Gathering advice from experts in pension funds and investments is another step in the right direction. Our due diligence will ensure the financial integrity of the Dallas Police and Fire Pension System and the Employees's Retirement Fund. Gathering advice from experts in pension funds and investments is another step in the right direction. Our due diligence will ensure the financial integrity of the Dallas Police and Fire Pension System and the Employees' Retirement Fund.

    picture of Mayor Pro Tem Tennell Atkins Mayor Pro Tem Tennell Atkins,
    Chairman of the Ad Hoc Committee on Pensions

  • We're on schedule to submit our funding soundness restoration plan to the Texas Pension Review Board by Fall 2024. The collaborative effort of the Ad Hoc Committee on Pensions and expert advice from interested stakeholders will help the city finalize a plan that ensures the long-term financial soundness of the Dallas Police and Fire Pension System while protecting Dallas residents.

    picture of Jack Ireland Jack Ireland,
    Chief Financial Officer for the City of Dallas

  • It seems like the ideal scenario is for everybody to agree to a plan. We can do this.

    Keith Brainard,
    Vice Chairman, Texas Pension Review Board

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Updates

What's Transpired

  • Both Plans:
    • Requirement for DPFP and ERF to submit Restoration Plans by 9/1/25 for full funding within 30 years.
    • Positive collaboration between city staff and stakeholders for plan finalization.
    • The City has the financial capacity to implement both funding soundness plans.
  • DPFD Specifically:
    • 2014 audit reveals financial challenges.
    • HB 3158 passed in 2017, changing DPFP Board structure and making several short-term fixes.
    • HB 3158 requires a report on financial risks and a DPFP funding plan by 11/1/24.
    • Expert guidance received for financial soundness of DPFP.

Looking Forward

  • Both Plans:
    • Submission of funding plan by Fall 2024.
    • Assured continuation of monthly benefits for all employees.
    • Development of a 30-year sound funding plan in collaboration with Texas Pension Review Board.
    • Regular meetings with DPFP and employee associations for transparent communications.
    • Exploring fiscally responsible funding options.

Supporting Documents