Dallas Advances Pension System Stability with New Funding Agreement
This week, significant progress was made in Dallas towards ensuring the financial health of the Dallas Police and Fire Pension System (DPFPS). The Dallas City Council gave its nod to a new Funding Agreement on Wednesday, which was subsequently approved by the DPFPS Board of Trustees on Thursday. This agreement emerges from years of coordinated efforts among city officials, pension stakeholders, and financial advisors.
The newly approved Funding Agreement is a critical step in establishing a stable financial path for the pension system. It aims to solidify DPFPS’s financial standing and sets a clear trajectory to achieve full funding within the next 30 years, in compliance with state law and the Texas Pension Review Board’s guidelines.
Dallas City Manager Kimberly Bizor Tolbert stated, “This plan ensures that we honor our commitments to our first responders, safeguard the City’s financial stability, and build a stronger foundation for generations to come.” She further emphasized, “This Pension Funding Agreement approval signifies more than a financial milestone—it reflects renewed trust, shared accountability, and a unified vision for Dallas’s future. I want to express our thanks to Mayor Johnson, the Dallas City Council, the DPFPS Board and public safety officers who have worked to get this agreement across the finish line.”
Beyond reinforcing DPFPS’s financial base, the agreement includes a provision for providing small annual stipends to retirees. These stipends, which come in addition to the regular monthly benefits, are designed to mitigate the effects of increasing living expenses. Although current state law does not permit Cost-of-Living Adjustments (COLAs) until the pension system achieves 70% funding, these stipends serve as recognition of the continuous service and sacrifices made by Dallas’s police officers and firefighters.
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