- Associated Press - Wednesday, May 21, 2014

DALLAS (AP) - Officials say a program that allows Dallas police officers and firefighters to delay retirement while having pension benefits earn interest is endangering the entire $3.4 billion pension fund.

The Deferred Retirement Option Plan keeps experienced personnel on the job while allowing them to earn annual interest of 8 to 10 percent.

The Dallas Morning News reports (https://bit.ly/SjDjaB ) DROP is threatening the broader pension fund because the interest the plan pays members is far higher than what it’s earned on investments. The interest costs the fund more than $100 million a year.

The pension fund’s cash obligation to DROP stands at more than $1.3 billion, which has doubled from six years ago.

Individual accounts average more than $400,000 for those participating in DROP, and 250 have more than $1 million.


Information from: The Dallas Morning News, https://www.dallasnews.com

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