(Bloomberg) -- Dallas’s police and firefighters are quitting indroves, wagering that financial-market losses are about to rendertheir promised pensions too good to betrue.
With the city considering benefit cuts to help close aretirement-fund shortfall that grew by$1.2 billion last year, more than 200 workers have decided toretire or leave, about double the normal rate, said Mayor Pro TemErik Wilson, who sits on the Dallas Police and Fire PensionSystem’s board. That’s threatening to put further pressure on thefund as benefits come due, including lump-sum payouts to olderemployees who’ve been drawing a paycheck while earning a guaranteed8 percent return on their pensions.
“I’ve had 40 to 50 officers in my office this week asking whatthey should do,” said James Parnell, 52, secretary-treasurer of theDallas Police Association and 25-year veteran. “They’re verynervous about what is going to happen, they’re fearing a run on themoney.”
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