Anatomy of a Pension Deal. Dallas Police and Fire Pension Board.

The Dallas Police and Fire Pension Board has approved these pension reforms:

• Dallas will contribute $1 billion
• Increase contribution rates for police and fire personnel who are not in DROP plans from 8.5% to 9.0%
• Increase contributions of active police officers and firefighters who are in DROP would rise from 4 percent to 9 percent
• Dallas will increase its contribution  from 27.5% to 28.8%, highest allowed by statute
• Cost of Living Adjustments drop significantly

What’s required to move the reform forward?

• 65% of plice and fire fighters must approve the deal
• The reforms cover 55% of the funding shortfall, the remainder will be covered by taxpayers
  • Most likely funding source: a bond proposal

WFAA | Dallas Police and Fire Pension Board approve plan to help failing retirement fund