DALLAS (AP) – Dallas Mayor Mike Rawlings has filed a lawsuit to stop the Dallas Police and Fire Pension system from allowing retirees to pull their deferred retirement funds from the ailing system.
Rawlings wrote in the lawsuit filed Monday that he believes the pension board is “willingly failing” to perform its duty.
More than $500 million in deferred retirement funds have been withdrawn since August, worsening the fund’s finances. A study commissioned by the pension board projected that the fund will be insolvent in less than 15 years if no changes are made to the benefits received by members or to the amount of money the city contributes.
Rawlings filed suit against the Board Monday, asking that a temporary restraining order be granted to stop the Board from making so-called DROP payments, or Deferred Retirement Option Program. Attorneys for the Board told Judge Tonya Parker that they’re meeting Thursday to try to find a solution to the problem, and agreed to not write any checks until after the meeting. Parker agreed to delay a decision on the restraining order until after the meeting. She’s expected to have both parties in her courtroom for a progress report late Thursday or Early Friday.
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