Police and firefighter pensioners rushing for the exits to escape a government-run Ponzi scheme — the Dallas public-sector employee pension that had promised 8% annual returns — were hit with the news that further lump-sum cashouts would be denied thanks to a lawsuit by none other than the mayor of Dallas.
The city of Dallas pension board has recommended a 130% property tax rate increase with a goal of raising $1.1 billion to plug the present gap in the pension fund.
The pension fund had recently reached for yield in risky real estate investments, losing $320 million before filing a lawsuit against its investment advisory firm earlier this year.
Expect many more such revelations in defined-benefit plans such as pensions, annuities, and life insurance as ZIRP/NIRP run their course.
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