Welcome to this week's roundup of recent developments impacting the retirement systems landscape. As trustees and administrators of public employee pension systems, staying abreast of these ongoing issues can help shape your decision-making and inform you of potential changes across Texas and beyond. Below are a few key updates.
Midland Firemen's Pension Fund Moves Forward with New Plan
The Midland Firemen's Relief and Retirement Fund is making strategic adjustments to help improve the financial sustainability of the pension, according to a report on FirstAlert7.com. Following a special meeting, the board voted to move forward with a revised funding strategy designed to secure benefits for future retirees while addressing funding shortfalls. The changes include restructuring contribution levels from both firefighters and the city, with the goal of ensuring long-term solvency. However, it isn't a guaranteed adoption by the city. Several options remain on the table, including a municipal bond, a lump sum payment from city reserves, or annual funding from the general fund—each of which could potentially require approval from Midland voters.
Dallas Voters Approve Propositions Affecting Pension Funds
During the Nov. 5, 2024, elections in the U.S., Dallas voters approved two propositions that will significantly affect the Dallas Employees' Retirement Fund and the Dallas Police and Fire Pension, according to a report on WFAA.com. Proposition A allows the city to increase its contributions to the Dallas ERF, intended to strengthen the fund's financial health and secure future benefits. Proposition U, placed on the ballot through a citizen-led petition, requires that certain extra city revenue be directed to the Dallas Police and Fire Pension Fund and mandates the city to hire additional police officers. These measures aim to bolster pension funding and enhance public safety efforts in Dallas.
New Hampshire Public Safety Workers Sue to Restore Pension Benefits
A coalition of public safety workers in New Hampshire, including police officers and firefighters, has filed a lawsuit against the state in an attempt to restore pension benefits that were reduced during a 2011 legislative overhaul, according to a report on NHPR.org. The workers claim that the cuts, which increased employee contributions and reduced benefits, were unconstitutional and have placed undue financial strain on retirees. The case may set a precedent for other states where similar benefit reductions have occurred, potentially influencing policy discussions around pension reform.
Indiana Prosecutors and Public Defenders Request Pension Upgrades
Prosecutors and public defenders in Indiana are seeking pension upgrades to help address recruitment and retention challenges in the field, according to a report in the Journal Gazette. According to Chris Daniels of the Indiana Prosecuting Attorneys Council, prosecutors struggle to keep their deputies because of low pay, unlimited caseloads, and "emotionally heavy and stressful" subject matter. The request highlights the need for competitive pension benefits to attract and retain legal professionals in public service, particularly as many offices struggle to maintain adequate staffing. Upgrading pension plans is seen as a way to make these positions more appealing amid an increasingly competitive job market.
Michigan Senate Passes Corrections Officer Retirement Plan
The Michigan Senate has passed a new retirement plan aimed at corrections officers, according to a report on WKAR News. The legislation is intended to enhance retirement benefits for corrections officers, helping to address recruitment and retention challenges within the state's correctional facilities. The plan includes provisions for improved pension benefits and aims to make the corrections officer career path more attractive by providing greater financial security for those who serve.
Stay Informed and Get Involved
These updates provide a snapshot of the shifting landscape of pension management across various jurisdictions. It remains critical for TEXPERS members to follow these trends closely, as similar challenges and opportunities could impact Texas pension systems.
Feel free to reach out if you have insights or want to discuss these developments further. We value your feedback as we navigate these challenges to ensure robust and sustainable pension systems for all public employees.
About the Author:Allen Jones is the director of communications and event marketing for TEXPERS. He joined the Association in 2017. Before TEXPERS, he worked in the news media industry, producing content for newspapers, magazines, and online publications and leading newsrooms as an editor and publications manager. [email protected]