DALLAS (AP) — A fresh proposal by Dallas officials to fix the city’s troubled police and fire pension fund would establish a new retirement system and allow the current, ailing one to continue its trek toward insolvency.
Chief Financial Officer Elizabeth Reich told the city council Wednesday that establishing a new system is an option, but the goal remains fixing the one experts say will become insolvent in 10 years. The Legislature must review any remedy.
Under the proposal, younger employees could transfer to the new system and get traditional benefits in addition to a 401K with a 5 percent city match.
Police and firefighters who transfer would take lower guaranteed benefits.
Taxpayers would continue to contribute to the current system, but beneficiaries would have no guarantee of future payments once the fund runs out of money.