The Dallas pension in crisis is not news to anyone who was here for the 2016 debacle that led to its near collapse.
The new pension crisis has been expected since 2016. The city budget debate coming is shedding new light on the old problem.
City council and city officials now face tough decisions about how to start building back the two public safety funds.
In 2016, the fund nearly went bankrupt. This happened after money that had been invested in luxury real estate did not turn a profit. There had been a risk of default at the time
City staff says there is currently $4B in in unfunded liabilities for both the Police and Fire Pension Fund and the city’s employee retirement fund.
Dallas Pension In Crisis – Hurting Recruitment?
There are requests to hire nearly 300 more police officers and 100 more firefighters. There are also new requests for overtime funding for both sides of the public safety spectrum.
One consideration is to issue nearly half a billion dollars in pension obligation bonds, i.e. take out a loan to pay the current loan owed.
Other Side Dallas will provide Dallas local breaking news and updates to this important public safety story.