DALLAS (WBAP/KLIF News) – The Dallas Police and Fire Pension Board met Thursday and the tension in the room could be cut with a knife.
The board’s executive director Kelly Gottschalk discussed a new bill filed by State Representative Dan Flynn that aims to save struggling fund.
The main concern is a provision that creates and directs a new board to consider taking back interest earned on special retirement accounts known as DROP.
Dallas City Councilmember Phillip Kinston told WFAA TV there’s no easy solution.
“There’s an element of taking benefits away from widows that feels like we might go to hell,” he said.
The House Pensions Committee is scheduled to start considering the bill March 27.
The bill also includes other cuts that is difficult for many retirees to come to terms with.
It would repeal the cost of living increase and turn DROP accounts into annuities based on a life expectancy of 78.
Retired police officer Gilbert Travis told WFAA TV this issue has taken over his life.
“Everything they do in there affects our lives and what we do,” he said.
Travis, who attended Thursday’s meeting, also found out that the fund doesn’t have enough money to make a scheduled $280 million in lump-sum withdrawals from DROP accounts.
Retirees will receive base benefits and a maximum of $3,000 a month but no more.
If changes aren’t made, the fund could go bankrupt in 10 years.
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