Dallas police retirees have formed their own association to fight for promised benefits as the city’s public safety pension crisis flares up.
The parking lot and side streets were jammed with cars for a special meeting of the new association Wednesday.
Former Dallas Police Sergeant Pete Bailey said Dallas voters have supported public safety benefits in the past and he believes they would support a tax increase now to avoid asking retirees to repay benefits already received.
“So anybody right now today that would stand up and support in any measure, a claw back, from the mayor, regarding the pension benefits for public safety personnel, is going directly against the will of the taxpayers and the voters of this city,” Bailey said.
The city faces an estimated $7 billion liability between the pension fund and a pending police and fire back pay lawsuit.
The Pension Fund investments failed to produce the returns necessary for generous interest promised in Deferred Retirement Option Plan accounts.
City Council Member Philip Kingston, also a current member of the pension board, said retirees must share in the possible solutions.
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“There are components of their benefits that will be cut under any formulation of a settlement, and it’s just brutal. It’s a horrible thing to do to somebody,” Kingston said. “We don’t have any choices. The things we’re debating now come down to the difference between having a pension system and not having a pension system. And I can’t overstate the critical nature of the problem at this point.”
State lawmakers created the Dallas Police and Firefighters Pension Fund and they have told city leaders to bring a solution settlement to the current session of the Texas Legislature. Mayor Mike Rawlings said he was in Austin this week talking with lawmakers.
“And we’ve got a good plan, a plan that can right this ship in the coming years, and take care of benefits for our younger officers, and take care of benefits for our older officers, as well,” Rawlings said.
In that plan, city leaders have offered to add $1 billion to the troubled pension fund, but through installments over 30 years. The city plan includes a list of benefit reductions and increased contributions from current employees and retirees.
“I don’t know if we’re going to get everybody in, but we’re doing everything we can to make sure we can find common ground on this. Now, we’re not there yet,” Rawlings said.
Bailey said the retiree group endorsed a 10 point education plan on the pension crisis, which it will share with taxpayers and officials.
“The money is available,” Bailey said. “There are alternative sources of funding available to the city that they are not willing to recognize.”
Rawlings said one plan from a state lawmaker to add an additional $1 billion from the city would reduce other city services by 57 percent, which Rawlings said he is unwilling to do.
Kingston said all groups must be more willing to reach a deal.
“So, people sticking to their guns and negotiating a tough way? Fine. Do all you need to do until you finally realize, the reality is, we’ve got to come to some sort of compromise in order to save the system. Because otherwise, it’s gone,” Kingston said.
The Pension Board meets again Thursday morning.
