Eddington v. Dallas Police & Fire Pension System (Opinion)Annotate this Case
The Supreme Court affirmed the judgment of the court of appeals affirming the judgment of the trial court in this case brought by three pensioners, holding that the Dallas Police and Fire Pension System did not violate Tex. Const. art. XVI, 66 by amending its pension plan to reduce the interest rate paid on Deferred Retirement Option Plan (DROP) accounts.
Petitioners elected DROP before the amendment in this case and argued that the change in interest rate reduced or impaired service retirement benefits granted or accrued in violation of section 66. The trial court initially rendered judgment for Petitioners but, on reconsideration, ruled that reducing the DROP account interest rate prospectively did not violate section 66. The court of appeals affirmed. The Supreme Court affirmed, holding the the pension plan amendments did not violate section 66 because the DROP account interest rate change was prospective and will not impact funds deposited before the amendments became effective.