Nowhere is the growing insolvency of America's pensions fund more obvious than in Dallas. Only a few days after the Mayor of Dallas filed a lawsuit to stop aggressive withdrawals from Dallas Police and Fire Pension fund, the Pension's boards has taken steps to at least delay a "run on the bank" that seen $500 million withdrawn since August.
While citizens of Dallas cheered the move, police officers and fighterfighters the action as a move to screw the retirees. Expect a similar drama will unfolding in many municipalities across America.
Headline: Dallas Police and Fire Pension Board ends run on the bank, stops $154M in withdrawals
The Dallas Police and Fire Pension System's Board of Trustees suspended lump-sum withdrawals from the pension fund Thursday, staving off a possible restraining order and stopping $154 million in withdrawal requests.
The system was set to pay out the weekly requests Friday. Pension officials said allowing the withdrawals would leave them without the liquid reserves required to sustain the $2.1 billion fund.
"Our situation is currently critical, and we took action," board chairman Sam Friar said.
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