New funding agreement sets Dallas Police and Fire Pension System on path to stability

Dallas, Texas – In a significant move aimed at securing the future of its public safety workforce, the City of Dallas has finalized a major agreement to stabilize and strengthen the financial outlook of the Dallas Police and Fire Pension System (DPFPS). The Dallas City Council voted to approve the new Funding Agreement on Wednesday, and the following day, the DPFPS Board of Trustees also gave its unanimous approval, officially cementing the long-awaited plan.

This Funding Agreement is the result of years of cooperation among City leadership, pension system stakeholders, and financial advisors. The new plan creates a sustainable roadmap to achieve full funding within 30 years, aligning with benchmarks established by the Texas Pension Review Board and state law. Its primary goal is to reinforce the long-term stability of the retirement system that thousands of police officers and firefighters depend on.

“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.

Support for Retirees Amid Living Cost Pressures

Beyond setting a stable funding path, the agreement includes a key provision designed to support retirees in the near term. Although state law prohibits Cost-of-Living Adjustments (COLAs) until the pension fund reaches a 70% funding level, the agreement authorizes modest annual stipends for retirees. These stipends, which will supplement regular monthly benefits, aim to soften the blow of inflation and acknowledge the dedication and sacrifices made by the city’s police and fire personnel.

The approval of this agreement marks a major milestone for Dallas, reflecting a balance between honoring past service and ensuring future financial resilience. With this step, Dallas continues its efforts to protect the retirement security of its first responders while maintaining responsible fiscal stewardship.