Dallas mayor files lawsuit to stop pension withdrawals
DALLAS -- Dallas Mayor Mike Rawlings filed a lawsuit Monday seeking to stop the Dallas Police and Fire Pension system from allowing retirees to pull their deferred retirement funds from the ailing system.
Rawlings’ attorney wrote in the lawsuit, which the mayor did not file in his official capacity, that he believes the pension board is “willingly failing” to perform its duty. It asks a judge to issue an injunction to stop the withdrawals, which the mayor asked the board to do in a letter last week.
“Because (deferred retirement) Participants do not have any right to a lump-sum withdrawal of (deferred retirement) funds, this method of payment may only be used when the Pension System is solvent, liquid, and actuarially sound,” the lawsuit contends. It also states that the pension system’s staff is close to liquidating assets to pay for the withdrawals.
More than $500 million in deferred retirement funds have been withdrawn since August, worsening the fund’s finances.
Read more: http://www.statesman.com/news/state--regional/dallas-mayor-files-lawsuit-stop-pension-withdrawals/LVRjsKKefvA8aKc7EoffUI/