The Dallas Police and Fire Pension System is a billion dollars in the red, and the plan to bail the system out is already being called “unacceptable” by some.
The bailout plan, unveiled Thursday, is a proposal that police and fire employees knew was coming. But the fact is, the Dallas Police and Fire Pension System is actually closer to $2 billion in the hole.
If things keep going the way they are going, the pension fund will be broke by 2030. That’s why consultants unveiled the bailout plan, which one police veteran called so drastic he believes it will be voted down by rank-and-file.
The plan calls for dramatic reductions in cost-of-living adjustments and deferred retirement option plans, also known as the drop program.
What’s more, the City of Dallas would immediately have to contribute $600 million into the fund just to keep it solvent.
“There is no choice. There have to be deep cuts,” said pension fund board member and Dallas City Councilmember Phillip Kingston. “We tried to make them the least painful as possible. There have to be deep cuts and there is no guarantee the city is going to love contributing the amount that being asked.”