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DALLAS POLICE AND FIREPENSION SYSTEM

2000 BALLOT
THESE AMENDMENTS MAINTAIN AND IMPROVE THE RIGHTS AND
BENEFITS OF ALL MEMBERS.
SOME SECTIONS AND SUBSECTIONS OF THE COMBINED PENSION
PLAN DOCUMENT HAVE BEEN REDESIGNATED OR DELETED.
THEREFORE, ALL REFERENCES STATED BELOW REFER TO THE
PROPOSED COMBINED PENSION PLAN DOCUMENT.
FOR PRECISE DETAILS OF THE ACTUAL PLAN LANGUAGE
CHANGES, INCLUDING THE SECTION REFERENCES TO AMENDED
PROVISIONS, PLEASE REFER TO THE COMBINED PENSION PLAN.
THE ACTUAL CHANGES IN THE COMBINED PENSION PLAN
LANGUAGE ALONE CONTROL. THE BALLOT, WITH OUR EFFORT
TO IDENTIFY ALL SECTIONS AFFECTED, AND THE BALLOT
EXPLANATION ARE MERELY TOOLS FOR YOUR CONVENIENCE
AND WILL NOT CONTROL IN THE LEGAL INTERPRETATION OF THE
COMBINED PENSION PLAN.
A. Benefits

1. Increase Benefits By Reducing the Number of Months Used In

Calculating Group B Members Final Average Computation Pay. This


amendment would reduce from 60 to 36 consecutive months the number of
months of Pension Service used in determining Computation Pay. Thus, a
member is more likely to have a higher final average Computation Pay and
higher pension benefits. This change would be effective only for Members
who leave Active Service or enter DROP on or after May 31, 2000.
Subsection 6.02(b), Subsection 6.04(f), Subsection 6.05(c), 6.08(b)(1).

2. Vested Members and Pensioners Who Marry After Termination of Active


Service May, At Their Own Expense, Purchase a Limited Survivor
Benefit For Their New Spouse. This amendment would permit a terminated
Member or a Pensioner whose marriage occurred after termination of Active
Service to irrevocably elect to purchase a limited survivor benefit for their
new spouse and would pay for this added benefit by an actuarial reduction of
the Members or Pensioners pension. The spouses limited death benefit under
this new option will be 50% of the adjusted monthly pension the Member or
Pensioner was receiving just before death. A Primary Party will have until the
later of May 31, 2001 or one year after the date of the marriage to make the
irrevocable election. This limited survivor benefit does not include any of the
minimum benefits that may be available to a surviving Spouse who marries the
Dallas Police and Fire Pension System
Ballot 2000 Combined Pension Plan Amendment

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Member before termination of Active Service. If the Member or Pensioner dies


within one year after the election, the beneficiaries will be paid a lump sum
equal to the difference between the actuarially reduced benefit and the pension
that would have been paid if the election had not been made. No limited
survivor benefit will be paid. This change would be effective June 1, 2000.
Subsections 6.06 (s) & (x) Subsection 6.09(a).

3. Qualified

Surviving Spouse Special Death Benefit Eligibility


Improvement. This amendment would provide that a Qualified Surviving
Spouse of a Primary Party who leaves Active Service or enters DROP on or
after May 31, 2000, having a total credit of age plus years of Pension Service
equal to at least 78 (down from 80) will be entitled to the Qualified Surviving
Spouse Special Death Benefit. Subsection 6.09(a)(1)(ii), (d)(1)(B)

4. Entering DROP Will No Longer Close the Class of Persons Who Can
Become Qualified Survivors. This amendment would provide that if a
Member enters DROP and later marries before termination of Active Service,
that new Spouse can become eligible for benefits as a Qualified Survivor.
Similarly, Children born after DROP entry but before termination of Active
Service could become eligible for benefits. This change would be effective
only for Members who leave Active Service or enter DROP on or after May
31, 2000. Subsection 6.14(h)

5. Increase In Minimum Benefits. This amendment would raise the minimum


benefit for persons entitled to minimum benefits. Members benefits would
increase from $1,800 to $2,000 per month (prorated for less than 20 years of
Pension Service). The amendment would also raise the minimum benefits for
Qualified Surviving Spouses from $1,000 to $1,100 per month if there are no
Children who are Qualified Survivors and from $900 to $1,000 if there are
Children who are Qualified Survivors. Finally, minimum benefits for Children
(as a group) and each Dependent Parent who is a Qualified Survivor would be
raised from $900 to $1,000. These changes would be effective June 1, 2000.
Subsections 6.10A (b)-(g), 6.10B (b)-(g), 6.11 (b)-(h)

6. Enhanced DROP Flexibility - Allow Members To Transfer DROP


Benefits to the City of Dallas 401(k) Plan - Allow Members or Pensioners
Who Elect Reduced Benefits Between Age 45-50 To Enter DROP.
This
amendment would allow Members in DROP a right to transfer all or part of
their DROP account to the City of Dallas 401(k) Plan. This change would be
effective only if it is approved by both the 401(k) Board and the Internal
Revenue Service, and would be effective as soon as administratively feasible
after both approvals are received. The amendment would also allow a Member
or Pensioner who elects or has elected an actuarially reduced pension before
age 50 to enter DROP. This change would be effective June 1, 2000.
Subsections 6.14 (a) and (e)
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B. Administrative

7.

Increase In Number of Trustees By Addition of One Pensioner Police


Trustee and One Pensioner Fire Trustee. This amendment increases the
Board to 12 Trustees with one Firefighter Pensioner Place and one Police
Pensioner Place, such Pensioner trustees to be elected by Pensioners from their
respective departments. The requirement that a quorum of the Board consist
of at least one active duty trustee from each department will be continued.
This change would be effective June 1, 2001 and the first Pensioner Trustees
would be elected in April 2001. Section 3.01 (b), (b)(2), (c),(d) & (m)

C. Technical and Legal Language Changes

8.

Combined Pension Plan Language Revisions. These amendments would


delete inoperative or obsolete language provisions, correct references, clarify
terms, conform language to operation, correct grammatical errors, and/or
condense and simplify certain language. Table of Contents, Subsection 2.01
(42) (B), Subsections 4.03(d), Section 5.08, Section 5.09, Section 6.03(b),
(k) &(l), Subsection 6.06 (m)(1), Subsection 6.09(a)(1), (d), 6.14(a)-(d),
Subsections 6.14(e)-(g), (h)(3),(4),(6) & (8)

Dallas Police and Fire Pension System


Ballot 2000 Combined Pension Plan Amendment

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