Dallas Police Resignations Soar As "Insolvent" Pension System Implodes
By Tyler Durden
A few days ago we noted that the Dallas Police and Fire Pension System (DPFP) took the unprecedented step of halting withdrawals from their DROP fund after a “run on the bank” pushed to the entire pension system, and the City of Dallas, to the brink of liquidity crisis (see “In Unprecedented Move, Dallas Pension System Suspends Withdrawals“). Now, a local CBS affiliate in Dallas is reporting that the pension crisis is driving a massive surge in police resignations.
Interim Dallas Police Chief David Pughes told city council members Monday that 99 officers have left the department since October 1.
City councilman Philip Kingston is among those who blame the situation on the cash-starved police and fire pension fund.
“It’s concerning, but it’s not very surprising with the turmoil surrounding the pension system,” said Kingston.
In a statement, Mayor Mike Rawlings said, “This is why we are working so hard to address our pension crisis.”
The Dallas Police Association said in any given year, about 180 officers leave the department — either to retire or work at higher-paying departments.
About half the number have left in a two and a half month period.
Of course, not surprisingly, the majority of the resignations came from older, tenured officers who had the most to lose.
“I think most of those 99 were tenured officers, so those are our most experienced officers, the majority investigative detectives who solve crimes everyday,” said Mata.
Councilman Kingston acknowledges the department’s challenge. “I think Chief Pughes is going to have to be creative. There’s nothing we can do to fix that in the short term. He has the number of officers he has and he has got to get results using those officers.”
Meanwhile, just like any other government problem, Dallas city council members have decided that the appropriate solution to their liquidity crisis is to offer police officers a 27% pay increase to be phased in over the next three years…that should be “roughly” inline with inflation, give or take 25%.
After months of negotiations, city council members will vote Wednesday on a new contract not only for police officers, but firefighters and paramedics as well.
Under the terms, most police officers, firefighters and paramedics would receive merit increases of ten percent the first year, five percent the second year, and ten percent the third year.
The Dallas Police Association and a city council member say they think the raises will help keep younger officers from leaving for other departments.
“Those individuals who possibly were thinking of leaving, yes, I think this prevents them from leaving. It helps them stay,” said Mata. “So it was definitely a move in the right direction.”
“It was important to get those numbers up what our younger officers can make at other places,” said Kingston. “It’s just the right thing to do in general.”
As we’ve stated many times over the past several months of following the DPFP implosion, taxpayers will be the ultimate loser here…looks like that’s …read more
Source: Dallas Police Resignations Soar As "Insolvent" Pension System Implodes
