DALLAS – A Travis County judge is expected to issue a ruling soon that will provide clarity about the Dallas Police and Fire Pension funding plan.
While the ruling is awaited, there were some tense moments at the pension fund meeting with the city’s hired consultant.
One sticking point between some Dallas City Council members and the pension fund has been whether the fund is doing enough to increase its return on investments.
On Thursday, pension board members questioned the city’s consultant about a report they felt was one-sided.
“Some of these kind of off-handed side comments were very damaging to the work that we are trying to do,” said Michael Brown, a trustee.
“I’ve been very clear to the city, this is a very experienced qualified board,” said Dory Wiley, the president and CEO of Commerce Street Holdings.
Wiley was hired by the city of Dallas to be an independent consultant about the state of the pension.
For years, the pension fund has struggled financially from a legacy of bad investments that the current pension board is still trying to correct.
The city will be on the hook for billions of dollars to help keep the fund solvent, which is why Dallas hired a consultant to look at the fund’s performance.
Thursday’s board meeting revealed tensions between that city consultant and pension trustees.
“I wanted to meet with you on this, and you stiff armed me,” Wiley said.
“I did not stiff arm you,” Brown replied.
“Yes, you did. You said you would not meet with me,” Wiley said.
“I did because you met with another trustee and at the end of the meeting you threatened to sue him,” Brown said.
“No, I did that at the beginning of the meeting,” Wiley said. “I had a very good cause. That’s was for the libel comments he did at a public meeting.”
Wiley later clarified that he’s not interested in suing anyone.
One of the issues causing contention is the comparison of the Dallas plan to Houston’s plan.
“It’s a goal,” Wiley said.
“This has been the comparison that’s led or has kind of been intimated that we are not doing our job,” said Tina Hernandez Patterson, the vice chairman and mayoral appointee.
“No one has said you are not doing your job. We were specifically requested by the city, ‘Hey will you compare us to Houston,’” Wiley said.
“The Houston police, they were 60% funded, they received $1 billion from the city. So, if the city of Dallas wanted to give the Dallas Police Department $1 billion, I think then you can compare them to Houston,” argued Michael Taglienti, a police officer trustee.
Trustee Mark Malveaux criticized the Commerce Street report by not including the pension fund’s plan.
“That impression is damming,” he said. “The part missing is the part that would give people confidence in the people sitting around the board.”
“I 100% agree with you,” Wiley said.
Then Wiley revealed the city hadn’t taken all of his advice.
“About a) what the scope of this out to be, b) how it ought to be approached, c) about the public part of it, and d) we did not get enough input from you guys. We got some, but not nearly enough. We didn’t advocate that, they did,” he said. “The intention is pure. We want to help.”
Whatever the Travis County judge rules in the case between the pension fund and the city, either side may decide to call on lawmakers for new legislation.
One big sticking point is whether retirees should receive a cost-of-living adjustment or a stipend that will not keep up with inflation.
