Dallas took another important step forward this week towards strengthening the long-term financial health of the Dallas Police and Fire Pension System (DPFPS). The Dallas City Council on Wednesday approved the landmark Funding Agreement, and on Thursday, the DPFPS Board of Trustees gave its approval, finalizing a Funding Agreement that represents years of collaborative effort among City officials, pension stakeholders, and financial experts.
This Funding Agreement marks an important milestone in securing a balanced and sustainable path forward for the pension system. It fortifies DPFPS’s financial foundation and outlines a clear roadmap toward full funding within 30 years, meeting the requirements established by state law and the Texas Pension Review Board.
“This plan ensures that we honor our commitments to our first responders, safeguard the City’s financial stability, and build a stronger foundation for generations to come,” said Dallas City Manager Kimberly Bizor Tolbert. “This Pension Funding Agreement approval signifies more than a financial milestone—it reflects renewed trust, shared accountability, and a unified vision for Dallas’s future. I want to express our thanks to Mayor Johnson, the Dallas City Council, the DPFPS Board and public safety officers who have worked to get this agreement across the finish line.” Tolbert added.
In addition to improving DPFPS’ financial foundation, the Funding Agreement introduces a provision for modest annual stipends to retirees. These stipends, provided in addition to retirees’ monthly benefits, are intended to help offset the impact of rising living costs. While state law does not authorize Cost-of-Living Adjustments (COLAs) until the system reaches 70% funding, the interim stipends recognize the ongoing service and sacrifice of Dallas’s police officers and firefighters.