Dallas City Council Approves Pension Funding Plan for Police and Firefighters

Pension Funding Plan Approved

• 🎯 The Dallas City Council has approved a plan to invest over $9.5 billion of taxpayer money into the Dallas Police and Fire Pension System over the next three decades.
• ⚖️ This vote is considered step one and could lead to the end of a lawsuit filed by the pension system against the city.

Pension Fund Status and Shortfall

• ⚠️ The pension fund is currently in trouble due to bad investments, resulting in a shortfall of more than $3 billion.
• 📉 The Dallas police and fire pension is only 32% funded.

Stipends and COLA

• 💰 Cost of living adjustments (COLAs) for retirees will not be paid until the fund reaches 70% funded.
• 💸 Instead, retirees who retired before January 1st, 2026, will receive a 1% stipend until the 70% funded mark is reached.
• 📈 An additional 1% stipend will be given to all retirees if the fund earns any investment return in the prior year.

Next Steps and Future Outlook

• 🗓️ The pension board will meet to vote on the plan, and if approved, it would end years of uncertainty and legal disputes.
• ✅ The goal is to achieve a fully funded pension system by 2040.
• 💬 The agreement is seen as a win for taxpayers, first responders, and retirees, aiming to bring stability and keep promises to retirees.