Red State Compromise on Police Fire Pension Reform. 3 Bits Informed Intel.

Which state legislature is working to revamp its local police and fire pension system? Arizona

What sparked the reform of local pension system by the legislature? Cities say their contribution rates too high.

What do we need to know about the compromise reform package?

• benefit increases for current employees must match actual cost of living increases
• small bump in the retirement age
• new hire pension contributions must be a 50/50 match between enrollee and local government

Is there an economic cost benefit for the new plan? For every new hire, local governments will save between 3 and 5.7% of that person’s salary on the pension each and every year. That’s a $3.6 billion savings over 30 years.

How to do enrollees feel about the reform? Public Safety Personnel Retirement System’s board voted to approve the compromise

ABC 15 | Arizona Public safety pension reforms could save taxpayers billions