Tuesday, September 20, 2016

ZeroHedge.Com - Dallas Police Pension On Verge Of Collapse As Record Number Of Cops Seek Full Withdrawals

Just over a month ago we wrote that the Dallas Police and Fire Pension Fund was on the verge of collapse after a series of shady real estate investments resulted in massive markdowns of pension assets, the ouster of the fund's CIO and an FBI raid of the fund's largest real estate investment manager (see "Dallas Cops' Pension Fund Nears Insolvency In Wake Of Shady Real Estate Deals, FBI Raid").  We summed up the fund's dilemma as follows:  
The Dallas Police & Fire Pension (DPFP), which covers nearly 10,000 police and firefighters, is on the verge of collapse as its board and the City of Dallas struggle to pitch benefit cuts to save the plan from complete failure.  According the the National Real Estate Investor, DPFP was once applauded for it's "diverse investment portfolio" but turns out it may have all been a fraud as the pension's former real estate investment manager, CDK Realy Advisors, was raided by the FBI in April 2016 and the fund was subsequently forced to mark down their entire real estate book by 32%.  Guess it's pretty easy to generate good returns if you manage a book of illiquid assets that can be marked at your "discretion". 
The rampant fraud at the DPFP left the fund over $3BN underfunded and its board of directors with no other option but to seek a $600mm infusion from taxpayers to keep the fund afloat.  Even worse, a review of the pension's financials revealed $2.11 of annual benefit payments to members for every $1.00 contributed to the plan by members and taxpayers (mostly taxpayers)...the typical pension ponzi whereby plan administrators borrow from assets reserved to cover future liabilities (which are likely impaired) to cover current claims in full.

12 comments:

Anonymous said...

Fuck them, they didn't do much when working. Get a second and third job.

Anonymous said...

Screw them.
They choose to be a cop and/or firefighter.
Should've stayed in school

Anonymous said...

Most pension money is invested with mismanaging crony fund managers.

When will the rank and file start taking union elections seriously?

Anonymous said...

Economic collapse is looming.......

Anonymous said...

Put them on obama care and given them Bourbon street dollars to eat

Anonymous said...

It's official, those coppers are fucked

Anonymous said...

Screw the pooch!

Anonymous said...

Its coming.......

Anonymous said...

Shaved is usually full of shit with everything he posts here...but this is some serious shit!

Anonymous said...

LET THEM EAT GATOR BITES

Anonymous said...

So he's full of serious shirt this time. Big deal.

Anonymous said...

Screw them. They'll just waste it on cheap beer, NFL memorabilia, and shopping splurges at Lane Bryant for their 250 lb wives. Good money is wasted on cops.