DALLAS, TX – City officials offered an explosive proposal Wednesday in their effort to save the Dallas Police and Fire Pension System: Don’t save it at all.
Chief Financial Officer Elizabeth Reich told the Dallas City Council that officials could create an entirely new retirement system called the Public Safety Employees Retirement Fund. Younger active employees would have the option to transfer to the new pension system, where they would get a traditional pension benefit as well as a 401k plan with a 5 percent city match on top of it.
Police and firefighters who transfer would take lower guaranteed benefits, but would be able to escape a system that is heading toward insolvency within the next 10 years.
