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Dallas Pension Can Cut Interest Rates, Texas High Court Says

March 8, 2019, 7:17 PM

The pension fund covering Dallas police officers and firefighters can reduce interest payments made to certain experienced officers without violating the Texas Constitution, the state’s highest court ruled.

Future interest payments earned on retirement accounts aren’t “accrued” benefits under the state constitution, the Texas Supreme Court held March 8. The pension plan amendments reducing these payments applies prospectively only and doesn’t affect money added to accounts before the amendments became effective, the court said.

At issue is the pension fund’s Deferred Retirement Option Plan (DROP), a program that allows eligible employees to stay on the job with full pay while...

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