Historical Timeline of ERF
Establishment of the ERF
A Study Committee was formed to review the financial situation of the Dallas ERF, which led to the recommendation of issuing Pension Obligation Bonds (POBs) to fully fund the Unfunded Actuarial Accrued Liability.
The ERF Trustee Board established the Pension Plan Study Group (PPSG) which evaluated various aspects of the ERF, including the life expectancy of future retirees and pension plan designs to reduce liability. The PPSG recommended adjusting benefits for new employees hired after December 31, 2016, addressing longevity, reducing normal costs by 36%, and reducing pension liabilities by $2.15 billion over a 30-year period.
The Chapter 40A Trust Plan amendments were approved by all parties, becoming effective after January 1, 2017. These amendments included the introduction of Tier B for new hires.
To improve projections to reach full-funding, ERF made changes in 2016 that should net $2.15 billion in savings through 2055.
The Pension Review Board (PRB) established new guidelines for the Funding Soundness Restoration Plan (FSRP). The Dallas ERF was required to formulate a revised FSRP, adhering to a funding period that is expected to be more than 30 years but less than or equal to 40 years.