Given recent articles and public statements, DPFP feels the need to correct certain inaccuracies. In 2017, because of liquidity and solvency problems and following extensive negotiations between DPFP and the City of Dallas, the Legislature unanimously adopted HB 3158. HB 3158 provided for a reconstitution of the DPFP Board and a seven-year period of time to allow DPFP the ability to stabilize its investments and benefit operations. HB 3158 also contained a provision requiring that the DPFP Board adopt changes to the DPFP plan by November 1, 2024 in advance of the 2025 legislative session to achieve statutory funding requirements. The Legislature adopted the provisions in HB 3158 in the hopes that the City of Dallas and DPFP could agree on plan changes understanding that if the two groups could not reach an agreement before the 2025 legislative session, the DPFP Board would adopt the required plan changes and the Legislature would very likely step in and once again make changes to the DPFP statute.
The letter sent by our outside counsel Haynes Boone to the Texas Pension Review Board is a very scholarly analysis of the conflict between the DPFP statute and the Funding Soundness Restoration Plan provisions of the Government Code. The Dallas City Attorney has forwarded a response to the Pension Review Board. Haynes Boone is one of the preeminent law firms in the state with a stellar reputation. They have very successfully represented DPFP in a number of litigation matters and as such, we are confident in the legal position set forth in their letter. . DPFP fully agrees with and stands by their analysis that the DPFP Board has the power alone to amend the DPFP plan in this one particular situation, as required by HB 3158.
Even given the foregoing, DPFP has stated publicly on numerous occasions that failure to reach an agreement with the City of Dallas almost certainly would result in further legislative action in 2025. The disclosure of this letter to the press by the City of Dallas appears to be an attempt by the City to mischaracterize the actual substance of the letter and use it to put DPFP in a bad light. DPFP has negotiated with the City of Dallas in good faith to solve the funding issues and will continue to do so. The DPFP Board is fully committed to making sure the plan is funded properly and achieving the proper benefits for its members. If an agreement is not reached with the City of Dallas, the DPFP Board will fulfill its legal obligation and adopt a plan for submission to the Texas Pension Review Board as required by the statute.