In what appears to be a breakthrough in a years-long fight, the Dallas Police and Fire Pension Board voted Thursday to accept terms reflected in the city’s offer sent on Sept. 26, 2025.
However, the board’s approval came with a caveat. The deal would be subject to “the acceptable finalization and negotiation” as well as the “finalization of a comprehensive settlement agreement” by the city and the pension board.
However, some pointed out they were “excited by the prospect of a settlement.”
Council member Chad West celebrated the news in his newsletter and said the board had accepted the “city’s best and final” offer.
Political Points
Last month, the City Council approved spending an additional $500,000 to tackle a legal fight that began last year over who gets the final say on a plan to fix the $3.4 billion funding shortfall.
The legal funding increase came as the city continues to challenge a Travis County District Court ruling from last year, which ordered Dallas to move forward with the funding recommendations made by the Police and Fire Pension System Board. Oral arguments are scheduled between both parties in the Eighth Court of Appeals in El Paso on Nov. 12.
Pension system leaders have said the legislative action that rescued the plan from the brink of collapse in 2017 gave the board exclusive authority to approve the plan so long as it complies with state regulatory requirements. The city, in rebuttal, invoked another state law, which says if the time it takes to fund a pension system exceeds 30 years, then the city and the fund must develop a funding restoration plan together.
In court documents, the city referred to the pension system’s stance as “extreme” and said it “would also risk creating a precedent authorizing pension systems across Texas to raid city coffers (i.e., resident tax dollars) without so much as involving the cities in these decisions.”