Representative Flynn Applauds Texas Supreme Court Victory for Dallas Police and Fire Pension Plan
This week the
Prior to the reform, the City's credit rating had been downgraded three times in two years, specifically because of their unsustainable pensions; however, within a year of the reform, their credit rating increased.
Retirees enrolled in the system had argued their constitutional rights were violated when in 2014 the plan had reduced the interest rate on their Deferred Retirement Option Plan (DROP) accounts. They argued the interest rate was a protected benefit under the Texas Constitution, but the court disagreed. The plan was put in jeopardy by overly generous benefits it could not pay for, specifically high interest rate DROP accounts.
"I understand the importance of retirement plans for public servants that dedicated their lives to protecting our communities, and the importance of that benefit as a recruitment tool for the next generation. However, to be prudent with taxpayer dollars, we cannot promise more than can be paid out, and we cannot let the pension plans become so unstable that they effect the bond rating for the city. My goal was to ensure the plan is able to continue providing retirement for the retirees, current employees, and future employees; and that goal was accomplished. I applaud the
Representative
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