Dallas Pension Oversight Battle Deepens as Senate Bill Advances and Mayor Moves to Reshape Board
The fight over control of the Dallas Police and Fire Pension System escalated this week after the Texas Senate Finance Committee advanced Senate Bill 1527, a measure from Sen. Royce West, D-Dallas, that would give the City of Dallas greater authority over the pension fund's recovery plan. Just one day later, Mayor Eric Johnson moved to appoint two new board members to the pension system—Rob Walters, a retired antitrust lawyer and former pension board member, and David Kelly, a financial expert with experience chairing the Teacher Retirement System of Texas. They would replace Board Chair Nick Merrick, recently appointed ambassador to the Czech Republic, and Mark Malveaux, who resigned due to increased work commitments.
These developments come as the city and pension system remain at odds over how to close a $3 billion funding shortfall. The pension board adopted a three-year ramp-up funding plan that includes cost-of-living adjustments (COLAs) for retirees, while the city favors a five-year approach with no immediate COLAs, citing the system's low 32% funding level and cost concerns.
The city previously lost a lawsuit filed by the pension system over who has final authority on the funding plan but has appealed the decision. SB 1527, if passed, could override the court ruling and enshrine the city's preferred funding approach into law, potentially ending the legal conflict altogether.
Why It Matters:
These fast-moving developments reveal just how high the stakes are in pension governance for Dallas and public retirement systems across Texas. SB 1527 and the mayor's board appointments signal a significant shift toward city-led oversight at a time when public pensions are under increased scrutiny from lawmakers, taxpayers, and employee groups.
Mayor Johnson's effort to install new trustees with legal and financial experience may be a strategic move in anticipation of the bill becoming law, aligning board leadership more closely with the city's fiscal vision. Meanwhile, critics of the bill—including current pension board members and law enforcement associations—warn that increased city control could politicize the fund and jeopardize the hard-won stability achieved since the 2017 reforms.
For trustees, administrators, and stakeholders in Texas public retirement systems, this situation highlights the importance of governance structure, political dynamics, and the need for local control. As SB 1527 progresses and new board members step in, Dallas could become a model—or cautionary—for navigating pension advocacy.
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]