Professional Documents
Culture Documents
CITY OF DALLAS
~~~
Chief Financial Officer
Attachment
c:
o anas-Together, we do It better!"
Agenda
Dallas Police and Fire Pension Overview
Key Financial Data
Funding Levels
Actions to Address
Single employer defined benefit plan provides retirement, disability and death benefits to police officers and
firefighters who are employed by the City of Dallas.
Governance
12-member board. Four City Council Members. Six members elected by active members, three each from the
Police Department and the Fire Department. Two members elected by the retirees, one each retired from the
Police Department, the other retired from the Fire Department.
Plan
Combined Plan
Supplemental Plan
Membership
History
Amendments
City Contributions
Set by Statute
Social Security
No
No
DROP Program
Yes
Yes
141
741
158
818
182
836
2,508
144
885
128
902
96
929
122
934
2,565
2,644
2,767
2,854
2,956
3,033
1,306
1,397
1,381
1,426
1,414
1,380
2,380
2,458
1,056
1,081
1,184
3,592
3,658
3,725
3,983
4,170
4,085
3,995
3,974
3,983
4,107
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2,380
5,000
4,000
151
867
157
1,036
135
891
1,252
3,000
2,000
1,000
0
Active DROP
Beneficiaries
Terminated Vested
Retirees
4
$30,000
$20,000
$10,000
$2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Number of Recipients
450
400
350
300
250
200
150
100
50
0
Payment Amount
Service Retirements
Active DROP
Beneficiaries
6
$140
$120
$106
$100
$80
$60
$40
$20
$0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
City
Members
$112
88%
Beneficiaries: 86%
Disabilities:
DROP:
-5%
679%
$250
$200
$150
$100
$50
$Distributions
2005
2006
2008
2009
2010
2011
Contributions
2012
2013
2014
10
24%
24%
14%
15%
14%
17%
14%
14%
11%
10%
11%
9%
10%
8%
Assumed Rate of
Return was 8.5%
until 2014 when
it was lowered
to 7.25%
0%
-2%
-10%
-2%
-5%
-8%
-12%
-20%
-25%
-30%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Return
12
$0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Actuarial Value of Assets $2,700 2,962 3,259 3,040 3,383 3,431 3,378 3,795 3,877 3,695
Market Value of Assets $2,736 3,131 3,353 2,529 2,873 3,113 3,015 3,265 3,335 3,074
12
Loss primarily results from guaranteed interest rates being paid on the fund that
have exceed the interest earned on the fund.
13
$3,441
$3,350
$3,133
$3,190
$2,995
$2,992
14
Funding Levels
15
93%
86%
84%
79%
88%
70%
73%
81%
81%
82%
84%
88%
93%
89%
78%
82%
74%
76%
74%
79%
60%
65%
69%
78%
76%
64%
72%
65%
66%
66%
61%
58%
50%
40%
30%
20%
10%
0%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Billions
64%
70%
$8
$8
53%
60%
$6
50%
$7
$6
$6
38%
$5
$4
$3
$5
$4
$3
$3
40%
30%
$3
20%
$2
$2
10%
$1
$-
0%
Actuarial Value
Market Value
Current Assets
Liabilities
GASB 67/68
Funding Ratio
17
18
19
Actions to Address
20
Investments Goals
Goals of new asset allocation:
Ensure liquidity needs are met
Maximize the investment returns within an appropriate
risk level established by the Board
22
Asset
allocation with
interim targets
and draft
investment
policy.
11-2015
Q1-2016
On-going
evaluation
based on the
changing
dynamics of
the funding
status and
liquidity
needs of the
Plan.
Present
structure
studies by
asset class.
Provide Board
education about new
investment structures
that may be
recommended and
other asset allocation
concepts. Provide any
additional direction
that may be necessary
on use of available
cash.
12-2015
Q3 2016 ongoing
Q2-2016
23
Questions
Kelly Gottschalk, Executive Director
kellyg@dpfp.org
214-382-4403
26
Appendix
Additional Information on Asset Allocation
DROP Members & Account Balance Trend
27
28
29
2014
2013
2012
2011
2010
2009
2008
2007
2006
1,434
1,446
1,409
1,425
1,333
1,278
1,207
1,104
1,079
995
107
155
190
176
208
168
191
203
139
166
-142
-167
-153
-192
-116
-113
-120
-100
-114
-82
End of year
1,399
1,434
1,446
1,409
1,425
1,333
1,278
1,207
1,104
1,079
$461
$441
$434
$425
$406
$374
$339
$295
$262
$233
1,912
1,772
1,603
1,449
1,302
1,173
1,060
921
787
668
New accounts
177
196
203
196
162
152
130
152
149
127
Closures
-58
-56
-34
-42
-15
-23
-17
-13
-15
-8
End of year
2,031
1,912
1,772
1,603
1,449
1,302
1,173
1,060
921
787
$962
$858
$738
$630
$531
$444
$368
$308
$250
$200
3,430
3,346
3,218
3,012
2,874
2,635
2,451
2,267
2,025
1,866
Active
Beginning of year
Entrants
Withdrawals
30