Dallas City Hall just hit reset on who gets to watch over roughly $5.5 billion in pension money, and the fallout is already rattling around the horseshoe. In a 10-5 vote, the Dallas City Council agreed to restart the search for an investment advisor to oversee the city’s pension assets, after staff floated a plan to coordinate the hire with pension-board leaders. Critics warn that approach could weaken outside oversight at the very moment the city is set to pour nearly $400 million into the funds this fiscal year, a decision they say carries real consequences for taxpayers and retirees.
Council Reopens Advisor Hunt In Split Vote
The council’s 10-5 vote reopens the procurement for an investment advisor who would help manage the city’s two pension systems. Supporters say a fresh search that folds in pension trustees could streamline how everyone works together. Opponents counter that it hands too much control to insiders and leaves the city without a truly independent reviewer at the table.
Council member Paul Ridley likened the proposal to “the fox watching the henhouse,” a line that quickly became shorthand for skeptics’ fears about diluted oversight. The vote and comments were detailed by WFAA.
2016 Pension Meltdown Still Looms Large
Those pushing for stricter, arm’s-length supervision have not forgotten 2016, when the pension system skirted crisis after aggressive real-estate bets met a rush of lump-sum withdrawals. The run forced emergency limits on withdrawals and left the city and pension members staring down the fund’s vulnerabilities.
That spike in withdrawals and the troubled property investments are still trotted out regularly in council debates as Exhibit A for why the city should keep some distance from pension trustees when it comes to picking outside watchdogs, according to The Dallas Morning News.
City Hall Backs Joint Hiring With Pension Boards
City staff, however, urged a more collaborative strategy. Rather than running a completely separate process, they recommended working side by side with pension leadership on selecting the adviser. The city’s chief financial officer argued that a joint approach could improve relations between City Hall and the pension boards, and the city manager pressed for coordination from the outset so the oversight work can be done “right.”…