A deal to fix the Dallas Police and Fire Pension crisis has been given final approval and is on the way to Gov. Greg Abbott's desk.
The bill spearheaded by State Rep. Dan Flynn (R-Van) and State Sen. Royce West (D-Dallas) was passed by the House unanimously on Thursday. It will now await the governor's signature.
The crisis in the pension system was blamed on overly generous benefits, investments that failed to produce the needed return and deception about the true value of fund assets.
As part of the plan, employees are set to pay more and receive less in benefits.
Some of the differences in the current pension plan and the bill headed to the governor's desk, include:
- Raising the retiring age to 58 (previously 50 or 55 depending on start date)
- Retirees would receive 90 percent of their computation pay under the new plan compared to 96 percent currently.
- No interest on DROP (Deferred Retirement Option Plan) which allows employees to continue working while claiming retired status. Under current plan, those who stayed on were able to have five to six percent interest in their retirement funds.
- The compromise also increases the numbers on the pension board to six appointed by the mayor and council, one police representative, one fire representative and three appointed by nominations committee. It also requires a two-thirds vote on major decisions from the board.
Taxpayers will also pay more to fix the system, but the amount of that contribution is not yet known.
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As a result of the crisis, Dallas lost hundreds of officers and saw other departments recruiting Dallas officers away from the department.
Mayor Mike Rawlings said when the deal was reached the city needs to look at restoring confidence.
"We've got to attract and retain our police and fire in order for us to continue the growth. Dallas is going to grow in the next 20 years. We are going to be a great city, but it won't be that way if we don't solve this issue," Rawlings said.
