A plan to help fix the troubled Dallas Police and Fire Pension Fund rides on a ruling promised Friday from State District Judge Ken Molberg.
The judge held a four hour hearing Thursday in a lawsuit by three firefighters and two police officers who oppose proposed benefit cuts and increased employee contributions.
Trustees had scheduled an employee vote on the changes to be held last month, but the judge blocked the election pending action in the lawsuit.
“Five individuals should not be able to stop 5,000 police and firefighters from voting in a democratic election,” said Pension Board Attorney John Turner. “Very conservatively a loss of over $3 million a month is occurring as long as these amendments are not going into effect.”
Taxpayers could also be responsible as fund finances worsen.
The Pension Board has asked the City of Dallas to contribute $1.1 billion to help keep the public safety retirement fund from going insolvent in as little as 10 years.
That amount could wipe out the city’s ability to borrow for other needs like street repair.
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The plaintiffs’ lawsuit challenges the election by claiming that the 12 member Pension Fund Board of Trustees operates in violation of State law that created the Board with seven trustees.
Plaintiffs’ Attorney Jack Ayres said the current board has no authority to take action and allowing the election would cause more harm.
“That means it's void and if it’s void, then you produce nothing but chaos with an election that can’t be anything but void,” Ayres said. “We say the law is what the Supreme Court of Texas says it is, and not what the plan says it is.”
If the judge sides with the plaintiffs, all Pension Board actions since additional trustees were first added in 1996 could be called into question.
Molberg said he would issue a ruling by Friday afternoon. The Pension Board would then have to arrange for a new election if voting is allowed to move forward. And members would then have to ratify the changes.
State lawmakers will also be asked next year to help fix the financial problems by making changes in the law that established the Police and Fire Retirement system.
The Dallas City Council has a meeting set next week on possible city support for fund.
The mayor has called the $1.1 billion request “ridiculous” but said he agrees taxpayers will have to make some contribution to a final solution for Dallas public safety retirement benefits.
