Our goal is to provide a secure, stable retirement for all police officers and firefighters.
The City plans to contribute an additional $1 billion over 30 years, within the budget. This plan will fully fund the pension without raising taxes.
How do we intend to do that? By incentivizing financial behavior that will be positive for Members and the Fund. The City will have to increase its contribution. We also require a revised governance that requires future plan and benefit changes that are only made after Members, employees and Dallas taxpayers have a say.
The City intends to preserve the constitutionally protected benefit sworn employees have already earned. Our proposed Pension plan is market-competitive for current and future sworn employees. We are redesigning the features to be fair to include COLA that addresses inflation.
Future service retirement adjustments will shift the normal retirement age from 50 to 55 years of age and employees will be vested after five years of service. The pension benefit will be based on 2.5 to 3 percent of the average 5-year salary, multiplied by years of service. The income replacement rate will be 90 percent of pre-retirement income. The medical supplement will be discontinued. The City’s contribution rate will increase to 34.5 percent of pay; contributions will increase to $135 million annually, which is the equivalent of a one-time cash infusion of $190 million.
In this plan, the City would contribute an additional $1 billion. This amount would be paid out over 30 years and wouldn't require an increase in taxes.
The process by which benefits are determined must change to prevent this from happening again. The taxpayers need appropriate checks and balances with Members and governing bodies. The City of Dallas believes accountability must be restored to ensure open and fair governance.