Dallas Police Pension Board Approves Benefit Cuts; Asks For More Taxpayer Money To Avoid Collapse

Tyler Durden's picture

For the past several months we've warned that the taxpayers of the City of Dallas, despite all of the tough talk coming out of their elected city council members, would ultimately be forced to bail out the failing Dallas Police and Fire Pension (DPFP) system.  And just last night the DPFP board voted 9-0 to approve a plan that would do just that. 

The plan to save the DPFP was proposed by Dan Flynn, chair of the pensions committee in the Texas House of Representatives, and calls for Dallas taxpayers to contribute 34.5% of police and firefighter salaries each year into the failing pension system, up from 27% in 2015, plus an incremental $11 million per year.  In total, the adopted plan will cost Dallas taxpayers an extra $22 million per year.

That said, the plan also calls for pensioners to grant concessions, including the following:

  • Increase in retirement age to 58 from 55
  • Increase in employee contributions to 13.5% of payroll from 8.5%
  • Elimination of COLAs in the near term
  • Elimination of exorbitant interest payments made on employees DROP accounts

Of course, the $7 billion shortfall in the DPFP triggered downgrades to Dallas’s credit rating from Moody’s and S&P in recent months which has wreaked havoc on the city's bond yields. (chart per Bloomberg).

Dallas

 

Meanwhile, no amount of incremental taxpayer funding will ever be sufficient to stop angry pensioners from playing the victim card when the realities of their pension ponzi schemes are exposed for all to see.  Per NBC 5:

There was a whirlwind of emotions at the meeting, from clapping, to tears and obvious tension, both from board members and from those whose futures hang in the balance.

 

"I think we're being treated like animals to a certain degree, and I was hesitant to even come down here today," said Frank Varner, a retired Dallas firefighter.

 

"How do you fix broken promises? These people deserve better. The firefighters and officers working today deserve better," said Mike Mata, a Dallas police officer and president of the Dallas Police Association.

 

Don't worry dear pensioners, there is no problem too large for taxpayers to bail out.

A summary of the plan adopted by the DPFP board can be viewed below:

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Friedrich not Salma's picture

The American taxpayer must be so amazing! Is there nothing he can't pay for?

MagicHandPuppet's picture

Why do I have to pay for YOUR glorious pensions when all I'll get is a dwindling Social Security check (if I'm lucky)?

NidStyles's picture

OH NO!!! THE PENSIONERS FEEL ABUSED!!!!

 

FORBID THEY SHOULD FEEL LIKE THEY WERE MADE PROMISES THAT CAN'T BE KEPT!!!

 

GOTTA SCREW THE FUTURE TAXPAYER UNTIL RETIREMENT SO THEY CAN SURVIVE BECAUSE THEY MADE ZERO PLANS TO SURVIVE WITHOUT THAT THEFT!!!!

JackT's picture

So does this mean the pension gets a free pass this year on hitting 7-8% returns on investments?

Edit: Oh...And it would suck to be FD/PD and 54 1/2 years old today.

Bumpo's picture

Can the rest of us get the Police, Fire Dept and Teacher's Union to pay for what was lost in our 401k's since 2000?

Déjà view's picture

Eliminate final year overtime abuse etc...doubling or tripling salaries relating to pension calculations...

Private sector should be so lucky...

Expect fees & fines to increase...or other stealthy ways...

duo's picture

 

I live in Dallas county. There are about a million households in the county.  $22 million is about a 12 pack of beer for each. Last year I paid $1100 to Parkland Hospital to provide health care to the illegals and poor.

Money Boo Boo's picture

the home of "free market capitalism" fails again.

SilverRoofer's picture

Exactly this is what the deserve

https://youtu.be/bczOxg2JoJM

A big lump of shit

JohnGaltUk's picture

The begining of the pensions crisis..... right on que.

There will be many others after ZIRP & NIRP over the last decade

rmopf2010's picture

 

 

 

Very TRUE next dominoe to fall is Private pensions because private pension funds are only profitable at 6~8% interest rate.

10 years of NIRP/ZIRP has made private pensions unfunded also.

 

 

 


rockstone's picture

That's the concept these redencks can't seem to grasp. When we're down to nothing, so are they.

NoPension's picture

Because you're not a hero.

You worked a non-hero regular job. Sheesh, some people.

cageysea's picture

Which will be used to be pay for their 'glorious pensions.' 

 

The question has become not "How do we pay for this?" but rather, "Who do we screw over to pay for this?" 

 

As in any ponzi scheme, when the music stops, who hasn't a chair to sit in? This is what happens when the citizenry allows elected representatives to consistently over-promise and under-deliver. 

 

It has always flumoxed me that ALL people aren't fiscally conservative, regardless their other political proclivities. What difference does it make whether I am anti-abortion or pro-abortion, what difference if I am pro-'same sex' marriage or against it, etc., if I can't pay my bills? Liberal, Conservative, one has to eat, one has to leave a world to our progeny in which they have a chance at living a good life. When we bankrupt ourselves through libertine fiscal irresponsibility, none of that is possible.

 

Anyone worth his or her salt is a fiscal conservative.

 

 

DanDaley's picture

You forget that some people believe that what is mine is mine and what is yours is mine, too.

 

Not to mention the I deserve it mentality along with the it's my right mentality.

MisterMousePotato's picture

No, I don't think cagey forgot any such thing. His question is valid; viz., even homosexuals and minorities need to buy new tires for their vehicles. It doesn't matter if it's a purple Escalade, pink Beetle, or black Hemi Dodge.

For each and every one of those respective vehicle owners, it's easier to do so if you don't have to pony up $1,000 per month for real property taxes.

Fathead Slim's picture
Fathead Slim (not verified) cageysea Feb 23, 2017 10:36 AM

"when the citizenry allows elected representatives "

Given the state of the systems in place, we have no means of disallowing anything they do. Even at the township level, these thieves just do as they please no matter what "constituents" think about their actions.

goober's picture

People are finally waking up to all of the government pensions scams. This is just the begining of many failures and insolvencies that cannot be fixed. Think about Chicago and Illinois in general and then ponder Kawleefornya ? It is all doomed and sooner than most realize. There will be a snowbal affect and will be many haircuts going forward. Just imagine the whining and angst of theopublic employess, both state and fed ? But you promised we would not have to pay for these largess retirements ? and many other unions will face the same insolvencies. Teamsters , AFLCIO, auto workers on and on. They will all go bananas, but it will be short lived because there is no solution, only cuts and renegotiations. I knew this day would come and I am seeing it begin !   

de3de8's picture

The hole in your thesis is that all Fed pensions will continue unabated via printing, something the states can't do. Should the Fed pensions ever stop you can bet there will be bigger issues to deal with as the whole system will be down.

jmack's picture

"The American taxpayer must be so amazing! Is there nothing he can't pay for?"

 

  Yea, competent government.

I woke up's picture

The pensioners that panicked first and pulled their money definitely panicked best

Saucy-Jack's picture

Who's gonna put out this fire?

Hyperinflation, here we come.

Nominally, all will be good.

Purchasing power? Not so much...

NoDebt's picture

But I was promised, motherfucker!

Aaaaaahahahahahah!!

 

booboo's picture

well then, shit in one hand and wish in the other and see which one fills up first.

sunnyside's picture

That's what I hear all the time from friends who are gov't employees.  And I tell them over and over "YOU WERE LIED TO".  It doesn't phase them when I tell them that there is no way mathmatically to pay all of the promises.  If they take (tax) everything we have, it still won't be enough. 

It still doesn't phase them as they head down to buy a new boat or ATV, because they say they will have that pension coming in to live off of for life. 

itstippy's picture

What would a retired fireman do with a new boat or ATV?  

Their back is shot from years of carrying babies down ladders from 12-story windows.  Their lungs are capput from smoke inhalation, the result of hundreds of hours a year battling raging brushfires.  They can't tolerate the sun because they have skin grafts over 80% of their face and hands from 3rd degree burns.  Can't turn their head because their neck is fused from wearing a 15lb helmet every day for 40 years.  Feet are like stumps from wearing heavy, wet boots all the time.  Fingers are arthritic from sliding down fire poles for years.

Those guys are the walking wounded and are lucky if they can operate a power scooter, much less a speedboat, sports car, or ATV.   

HRH Feant's picture
HRH Feant (not verified) Feb 22, 2017 11:45 PM

Well, it looks like property taxes in Dallas are gonna go up!

Savyindallas's picture

No need to  -just fire all the cops, require all citizens to arm themselves, and let local crime watch groups guard their neighborhoods. Cops are wortless anyway. 

chosen's picture

Cops only show up AFTER a crime.  They do nothing to prevent a crime, unless they happen to be eating their donuts at the same place and time a crime is being committed.  

NoPension's picture

Traffic cops generate revenue. There's that.

Keep the courts stuffed with fresh patrons, which keeps the attorneys and the rest of the " criminal just us" system in high cotton.

It's like, if you made taxes simpler, look at all the accountants and H&R Block employees out of a job. They deserve to eat. And obviously, you deserve to get fucked paying them.

Come on kids, it's a nice club...gummit is....and most of us just get to pay for it and watch in awe as they make bank on our labor. Oh, and it's NEVER enough.

In Ze No's picture

If people were smart they'd am-scray from town, but they won't.  They'll whine but they'll still sit and take it.  That , my friends, is why tax payers remain such a favored target.

Jethro's picture

Funny.  I just referenced the Dallas Police pension fund today in a conversation with a state employee.

Joe_in_Indiana's picture

What happens when a private company forgoes a pension plan? The Fed calls in chips and slashes the pensions 30-80% at least.

It happened in many manufacturing/service fims in the past, even now. The Dallas PD should be thankful for what they have

compared to others who thought they were going to get a full loaf also.

slicktroutman's picture

And they only have to work to 58, I have to work to almost 67. That sucks. I'm 61 now and they'll most likely raise the retirement age again before I can retire.

techpriest's picture

Hopefully you're putting cash, gold, something away because SS is going to get more and more precarious.

NoPension's picture

.....oh the humanity.

It's gummit. They heros. What good is a gold plated, taxpayer fucked pension plan, if you're too old and decrepit to enjoy it?

You know, the problem with you fucking progs is....you just don't think like gummit " workers " think. They are special. Your pit and pain is bottomless and fucking irrelevant. Besides, the pols making the decisions, are well greased and down the road when the shit hits the fan.

cheka's picture

at least the nyc bankster HOLIDAY bonus pool is safe at 30 billion/yr

if it dips they steal it from the rest of us

apparently cops dont get the same deal

Basaltie2017's picture

This is only the beginning. You should see the sweetheart deals in the northeast for these pensioners. And a declining population to pay for it all.

vealparm's picture

There is another article on ZH today referencing the same problem in Connecticut. NJ, NY, IL and CA all have huge public union pension debts in the billions that will be impossible to pay. The crony backroom deals the Democrat politicians made for decades with the state unions  are outright fraud and vote buying. The contracts should be thrown out and the pensioners should get a hair cut...a buzz cut. The chickens are coming home to roost.

Jack Napier's picture

If you want to make a counter pary risk omelette, you're going to have to break a ton of eggs.

yellensNIRPles's picture

This gets much worse in the country as a whole as time goes on. Hold on to your asses.

Don Pancho's picture

I hope everybody in Dallas just sells their houses and becomes renters...that would show 'em...

I want a taxpayer bailout for my mismanagement too ya know...

Dallas's finest?  Well, I guess if you count corrupt, vile, violent, blackmailing, murdering, raping, and stealing thugs as fine, then sure...

Geesh my roids are flarin' tonight...

shimmy's picture

If there must be some "fixing" then how about the idiots managing the pension board/fund cover the shortfall as I am sure they're probably millionaires and they are who have fucked it all up.

Amazing how almost nobody is ever held accountable for their fuckups in today's bullshit society.

SgtShaftoe's picture

Where's my pension fuckers?  Sorry, roll it to an Ira and live like the rest of us. 

clagr's picture

The real problem is caused by Public Sector Unions. How can a government effectively negotiate with its unionized government employees--history has shown that it can't, and we are seeing the result right here in this example.

 

I am all for cops and firefighters getting well taken care of--I was one myself (but as a volunteer)--but politicians can't negotiate with public sector unions. They are making promises that they don't have to keep themselves.

HRH Feant's picture
HRH Feant (not verified) clagr Feb 23, 2017 12:05 AM

Nailed it! This is the rotten core of the US. Public employee unions.

Ding ding ding we have a winner!

The reason the VA doesn't work? Federal Employee Union members.

The reason the TSA doesn't work? Federal Employee Union members.

The reason the NEA doesn't work? Local Public Employee union members.

Feel free to add to the list!

Megaton Jim's picture

The REAL reason they don't work: AFFIRMATIVE ACTION!

undertow1141's picture

It's both actually. Aff Action gets you the lazy inept employees but it the union who makes them unfireable. That's the problem.

randombraindead's picture

Easy to blame the unions, but that is not reality.  Next you are going to tell me it was the bank teller Union that caused the banking crisis and the mortgage broker Union that caused the mortgage crisis.  The tech worker Union that caused the tech bubble.  The enlisted men's Union that led to our insane military spending?

I have some knowledge of how the government works.  Most problems  and inefficiencies are caused by stupid beurocrats trying to keep stupid politicians happy.

Government employees lack autonomy.  They are hampered much more by regulations than any business.  The government is absurdly risk averse.  It would rather do nothing than risk failure (e.g. bad publicity).

mary mary's picture

Police unions and firefighters unions work on City Commissioner election campaigns.

That's the secret.

Anybody can form a group and work their butts off and get something from the City Commission.  But 99.99% of people are too lazy.  They have a million excuses.  "Everything in life is decided by the people who show up."