DALLAS (CBSDFW.COM) – The city council heard the city of Dallas’ plan to save the police and firefighter pension fund on Wednesday.
The city’s Chief Financial Officer Elizabeth Reich told the council that their plan can save the fund in 30 years but it requires greater contribution from everyone, including the city.
“If the city was to pay for everything with taxpayer money, our general fund budget would need to be 120 percent of what it is today. That would mean a $.70 increase in taxes. That’s an 88 percent increase for the next 30 years,” she said.
Reich said they will implement changes to the fund as well.
“We need to change the future multiplier for all employees, adjust the features of the plan and raise contribution rates.”
Reich believes the city’s plan can save the fund in 30 years.
“Our plan takes that unfunded liabilities and immediately improves our funding ratio to 50 percent and in 30 years we are 100 percent funded. We can get out of this,” said Reich.
The fund faces $3.5 billion in future unfunded benefits.
The pension board will meet Thursday to decide if they want to put a halt on withdrawals and the city council will vote on the plan next week.
(©2016 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)