Irving fire pension board reports stronger funding after pension-obligation bonds

David Florence, chairman of the Irving Fire Relief & Retirement Fund board, told the Irving City Council on Dec. 11 that the fund’s health has improved markedly since pension obligation bonds (POBs) were issued in 2021.

Florence said the fund’s unfunded liability fell from about $103 million before 2019 to roughly $25.8 million today, and that the fund’s assets are approximately $304 million. He told the council the fund’s 10-year return is about 8 percent and reported net earnings on POB dollars through June 2025 of about $23.2 million, including $5.1 million in the third quarter.

The board chair said the pension-obligation-bond strategy allowed the fund to adopt a more growth-oriented investment posture once solvency improved, which helped capture recent gains. He described a split risk arrangement between fund members and the city that reduced near-term payment pressures and shortened amortization schedules.

City finance staff told council the POBs also produced broader savings: they estimated more than $125 million in gross city savings over 25 years when other obligations tied to bonds were included. Staff said the city has set aside a risk-mitigation fund now fully funded and available if markets decline.

Council members praised the work of the pension board and city staff for stabilizing the fund and noted that improved pension health helps preserve the city’s fiscal position. Florence and staff said the current funding level—above 90 percent—places Irving near the top of comparable Texas municipal pension plans under the assumptions used in their analysis.

The update concluded with staff recommending continued monitoring of investment performance and a review of the POB contract terms at the appropriate time.

Next steps: city staff will continue routine oversight, and the council will see related budget adjustments in subsequent meetings.