Consultant recommends Dallas hire firm to increase knowledge of police, fire pension

Hiring an outside firm could help the city of Dallas spot red flags with the troubled Dallas Police and Fire Pension System.

That’s one strategy a consultant presented to the Dallas City Council on how it might improve communication in its strained relationship with the DPDFS that recently landed both sides in court.

Somewhere between a police and fire pension system that makes investments and a city that has to fund those investments sits retired first responders like David Elliston.

“Yeah, that is a frustrating part for the retirees,” Elliston said about the perception of retirees being stuck in the middle.

Lately, the former Dallas Police deputy chief has spent much of his retirement listening to plans to shore up his retirement.

As president of the Dallas Police Retired Officers Association, Elliston closely monitors negotiations to help shore up a pension system facing a $3.4 billion shortfall, including plans from the city and the pension board. 

The competing plans resulted in the pension plan taking the city of Dallas to court in August.

“The retirees are the ones that don’t have a say to either side, but yet we’re the ones impacted by the decisions that they make,” Elliston said.

On Wednesday, a consultant presented to the Dallas City Council an overview of the DPFPS's investment strategies and returns. The report from Commerce Street Investments found that the pension consistently underperformed similarly sized public pensions in Texas.

Dory Wiley with Commerce Street Investments said the city should become more knowledgeable about the pension and hire a firm to help it understand the independently managed Dallas Police and Fire Pension.

During the presentation, Wiley said members of the Dallas Police and Fire Pension Board contacted him to make the same presentation at a future open board meeting of the pension system.

“There are brighter days ahead for Dallas Police and Fire,” Wiley said.

The briefing on Wednesday comes as the city of Dallas is set to approve pouring $11 billion into the pension over the next 30 years to fully fund it, as required by state law.

The city council is expected to approve a funding soundness and restoration plan at its meeting on Sept. 11. The plan submission is a requirement of a 2017 state law that helped save the pension from the brink of collapse.

Councilmember Gay Donnell Willis, who represents District 13, says the city should examine the investment returns and performance of the police and fire pensions more closely.

“Let’s face it, we are the bank of Dallas,” Willis said. “And so when you know you’ve always got momma’s checkbook to come back to, you may not force yourself to perform as much as we would hope that you would.”

Councilmember Paula Blackmon, who represents District 9, added that if the pension improves its performance, the city will have to spend less money over the long term, allowing more resources for other city services like streets, parks, and libraries.