INTERIM. Proposition to Reform Pensions in the West. 3 Points informedintel.

Which state has a pension reform measure on its constitutional amendment ballot? Arizona’s Prop. 124

Who supports Prop. 124? 

• Police and firefighter organizations
• League of Arizona Cities and Towns
• State Legislature
• Arizona Governor Doug Ducey
• Mayor of Prescott

What does Prop. 124 do?

• COLA Change. Switches the current 4% COLA to an increase capped at 2% and tied to the Consumer Price Index
• Save Taxpayers  $1.5 billion over the next 30 years.
• Keeps the promises made to police officers and firefighters
• Allows for statutory changes for new hires. Arizona SB 1428

  • Choice between a defined contribution plan or a defined benefit hybrid plan.

  • Changes age eligibility requirements from 52.5 to 55 years of age

  • Reduces the maximum pay for pension calculations from $265,000 to $110,000/year

  • Requires employees to split retirement costs 50/50 with the employer.

  • Reduces or eliminates COLAs if a pension plan falls below a 90% funded ratio.

Prescott Daily Courier | Column: Pension reform needs a ‘yes’ vote on Prop 124

Prescott Daily Courier | Prop 124: Pension fix has broad support