DROP Payments Halted by Dallas Fire and Pension Plan

Deferred Retirement Option Program lump sum payments were halted by the Dallas Police and Fire Pension Thursday due to a cash shortage and a run on funds.

The Dallas Police and Fire Pension fund had a liquid cash balance of $729 million as of Thursday morning. Officials said the $154.5 million in withdrawal requests would take the balance too low.

Dallas City Council members was briefed Wednesday on the looming concerns regarding the Dallas Police and Fire Pension system that prompted Mayor Mike Rawlings to suggest the city is moving toward the threat of bankruptcy.

This week, Rawlings threatened a court order to force the pension fund board to stop payments if it didn't do so on its own.

A judge denied Rawlings’ request for a temporary restraining order and, instead, deferred any action until after a pension board meeting Thursday. If the board doesn't take action, the judge may revisit Rawlings' request for a TRO.

In 2015, pensioners withdrew approximately $80 million from the fund.

During a 15-week period from mid-August to Nov. 24, 2016, pensioners withdrew nearly $494 million.

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