STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: September 11, 2024
COUNCIL DISTRICT(S): All
DEPARTMENT: Budget and Management Services
EXECUTIVE: Jack Ireland
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SUBJECT
Title
A resolution (1) adopting a funding soundness restoration plan for the Dallas Police and Fire Pension System; and (2) directing the city manager to submit the funding soundness restoration plan and all other required documents to the State Pension Review Board not later than November 1, 2024 - Financing: No cost consideration to the City (see Fiscal Information)
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BACKGROUND
The Dallas Police and Fire Pension System (DPFPS) provides retirement, death, and disability benefits for permanent police and fire uniform employees of the City of Dallas. Currently there are approximately 5,300 retirees and beneficiaries, and approximately 5,100 active police and fire uniform employees that are members of DPFPS. The fund was established in 1916 and is governed by Vernon's Texas Revised Civil Statute Annotated, Article 6243a-1 (Article 6243a-1). The Texas Pension Review Board (PRB) is mandated to oversee all Texas public retirement systems based on Chapter 802 of the Texas Government Code. The PRB's funding guidelines require that actual contributions should be sufficient to cover the normal cost and to amortize the unfunded actuarial accrued liability over as brief a period as possible, but not to exceed 30 years.
As of January 1, 2023, DPFPS has a funding percentage of 39.1 percent and is projected to achieve full funding in 82 years. To comply with the Chapter 802 funding and amortization period requirements, a jointly agreed to plan by DPFPS and the City, a Funding Soundness Restoration Plan (FSRP), must be submitted to the Pension Review Board by September 1, 2025. The FSRP is required in accordance with Chapter 802 of the Texas Government Code.
Further, the Texas Legislature passed HB3158 i...
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