STRATEGIC PRIORITY: Fiscally Sound
AGENDA DATE: May 14, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Budget and Management Services
EXECUTIVE: Jack Ireland
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SUBJECT
Title
A resolution authorizing the city manager and chief financial officer to continue good faith negotiations with representatives of the Dallas Police and Fire Pension System to work toward an agreed upon amended funding plan and settlement of the pending litigation - Financing: No cost consideration to the City
Body
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.
On September 11, 2024, to comply with its obligations under Article 6243a-1 and Government Code Chapter 802 Subchapter C, city council adopted Resolution No. 241318, which adopted a funding soundness restoration plan for DPFPS (the City Plan).
On August 8, 2024, the DPFPS Board approved a separate plan that they subsequently filed with the PRB. On August 8, 2024, the DPFPS Board also filed a lawsuit claiming that they have exclusive authority to adopt a plan that does not require City Council approval. The city has filed counter-claims in opposition to the lawsuit f...
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