Dallas Police and Fire Pension Board ends run on the bank, stops $154M in withdrawals

[majorownage]

You know what else will turn you into a millionaire? Investing for retirement, and that is just what these fools did not realizing that they were being sold a bill of goods by people who just wanted to hold their money for them while never intending to pay them what the contracts they signed promised them.

The retires never gamed a damn thing. The only gaming that was done was do by the people who sold the shitty investments to the pension fund.

the DROP fund didn't do the investing, it just guaranteed an 8% ROI by pledging the general pension as collateral. So yes, the pension made bad investments, but the problem was magnified way worse because the pension HAD to pay out 8% to the drop funds even if the pension's investments were losing money.

so my 100k drop fund would still return 8k even when the pension LOST MONEY.

[longshot]

So explain to me why the taxpayers should have to cover the asses of so call bad investors? When my 401-k took a dump a few years back there wasn't anyone there to replace my money.

[svauto-erotic855]

So explain to me why the taxpayers should have to cover the asses of so call bad investors? When my 401-k took a dump a few years back there wasn't anyone there to replace my money.

Because there is a contract that is why. You do not get to go back and say that you do not like the terms of a contract years after signing it.

[svauto-erotic855]

the DROP fund didn't do the investing, it just guaranteed an 8% ROI by pledging the general pension as collateral. So yes, the pension made bad investments, but the problem was magnified way worse because the pension HAD to pay out 8% to the drop funds even if the pension's investments were losing money.

so my 100k drop fund would still return 8k even when the pension LOST MONEY.

The people who signed the contracts had no way of knowing what was being done with their money. All that they knew is that they had a signed contract in their hands that said that they got an annual rate of return of eight percent. A contract is engraved in stone.

[yellowstang]

Guaranteed 8% return ... right ...

[majorownage]

The people who signed the contracts had no way of knowing what was being done with their money. All that they knew is that they had a signed contract in their hands that said that they got an annual rate of return of eight percent. A contract is engraved in stone.

That's the nature of a pension...
Until the pension runs out of money.

That drop fund was basically a bank failure.

[svauto-erotic855]

That's the nature of a pension...
Until the pension runs out of money.

That drop fund was basically a bank failure.

They have the money to pay out. They simply do not want to part with it. Even if they could retroactively go back and take away away all of the money earned by the depositors and just give them back the EXACT amount that they deposited into their own accounts I doubt that they would give the money back.

[majorownage]

They have the money to pay out. They simply do not want to part with it. Even if they could retroactively go back and take away away all of the money earned by the depositors and just give them back the EXACT amount that they deposited into their own accounts I doubt that they would give the money back.

because it will screw over current retirees and rob the young firefighters of their retirement money. That drop fund was set up by senior officials and it only benefited them. Of course they wrote themselves a great contract backed by the pension. The entire thing is a conflict of interest.

[DON SVO]

because it will screw over current retirees and rob the young firefighters of their retirement money. That drop fund was set up by senior officials and it only benefited them. Of course they wrote themselves a great contract backed by the pension. The entire thing is a conflict of interest.

Kinda like social security?

[jewozzy]

Also for what it's worth there is a difference between DROP and their pensions. One of the reasons the city is taking this stand is due to the 37 year old lawsuit that officers from late 70s and early 80s have against the city of Dallas. The city screwed police and fire out of their raises for 30 years that the voters voted for and then tried to throw their hands on the air and say sorry. If that lawsuit is successful the city of Dallas will be bankrupt and then some. This lawsuit is one of the reasons the DROP program was able to come into fruition initially. It is also the reason the city wants to secretly bail the DROP program out because they hope they can find DROP to cancel the lawsuit. An issue with that is most of the people in the lawsuit were never a part of DROP. One big mess this is all around...

[Forever_frost]

Because there is a contract that is why. You do not get to go back and say that you do not like the terms of a contract years after signing it.

You do when that fund is bankrupt and there's no money in there to pay out.

[Forever_frost]

Also for what it's worth there is a difference between DROP and their pensions. One of the reasons the city is taking this stand is due to the 37 year old lawsuit that officers from late 70s and early 80s have against the city of Dallas. The city screwed police and fire out of their raises for 30 years that the voters voted for and then tried to throw their hands on the air and say sorry. If that lawsuit is successful the city of Dallas will be bankrupt and then some. This lawsuit is one of the reasons the DROP program was able to come into fruition initially. It is also the reason the city wants to secretly bail the DROP program out because they hope they can find DROP to cancel the lawsuit. An issue with that is most of the people in the lawsuit were never a part of DROP. One big mess this is all around...

Explain more about this. This sounds interesting

[svauto-erotic855]

You do when that fund is bankrupt and there's no money in there to pay out.

The fund has assets that total $2,100,000,000.00 and $729,000,000.00 in liquid assets such as cash, CDs, and bonds. It is far from bankrupt.

[jewozzy]

http://www.dallasnews.com/news/dallas-police/2016/08/05/billion-dollar-pay-lawsuit-deter-dallas-mayor-hiring-police-raising-wages-says

[Broncojohnny]

The fund has assets that total $2,100,000,000.00 and $729,000,000.00 in liquid assets such as cash, CDs, and bonds. It is far from bankrupt.

It has $3.3 billion in future obligations, so it is well beyond bankrupt, actually.

The City of Dallas has only four seats on the board, the city doesn't make the investment decisions. The citizens of Dallas don't owe that pension fund jack shit.

If you are so concerned about it then send them your money.