ARIZONA NEWS

Proposition 125 would allow adjustments to 2 state pension plans

Oct 8, 2018, 4:48 AM | Updated: Oct 9, 2018, 8:48 am
(Pexels Photo)...
(Pexels Photo)
(Pexels Photo)

This week, KTAR News 92.3 FM will highlight the five ballot initiatives that will be on the Arizona ballot for the midterm elections next month. On Monday, KTAR News’ Bob McClay will break down Proposition 125. 

PHOENIX — Proposition 125 would amend the Arizona Constitution to allow for two state pension plans to be adjusted.

Based on Senate Bill 1442 and 2545, Prop. 125 would make an exception to the current prohibition against diminishing or impairing public retirement system benefits.

Both elected officials’ and corrections officers’ retirement plans would be adjusted to remove a four percent benefit increase and replace it with a maximum of two percent cost of living increase.

Public Safety Personnel Retirement System vice chairman Will Buividas supports the notion, saying the adjustment will help spread out payments long term.

“We believe that it will ensure that the funds will be sustainable going into the future. After we did it for PSPRS two years ago, PSPRS is back to the path of recovery,” Buividas told KTAR News 92.3 FM. “It is stable, it is growing and we need to do the same to CORP and EORP so we can pay those pensions out to retirees for the next 50 years.”

A proposition that focused on police officers’ and firefighters’ retirement plans, Prop 124, did the exact same thing in terms of PBI and COLA and passed with overwhelming support, Buividas added.

PSPRS found that Prop 124 long term will end up saving employers about $500 million over the course of 20 years.

While Prop 125 is on a smaller scale, Buividas believes there will still be significant savings for taxpayers of upwards of $275 million over the next several decades.

“It puts both plans on the path of sustainability. It makes it a more stable plan, stable benefit that the employers can budget for, but also the retirees can budget for,” Buividas said. “It creates a fair playing field and puts us on the path to sustainability.”

By passing the proposition, it will be easier for employers to plan more as well as the PSPRS staff and investment groups.

“For taxpayers it frees up hundreds of millions of dollars to your local governments, cities and counties and then can be used on other critical services for public safety, for streets, for transportation and to provide needs for the community,” Buividas said of how Prop 125 will help taxpayers moving forward.

On the other side, opponents of Prop 125, like retired corrections officer Eric Hahn, feel the proposition is taking money out of the pockets of retirees.

“It’s basically just changing a contract after everybody’s already retired that’s why we’re against it,” Hahn said. “We fulfilled out terms of employment and retired and now the state’s coming back and trying to cut out costs of living for retirees and make retirees their scapegoat for their budget problems.”

The proposition would essentially take a cut out of the retirement pay from a cost of living standpoint, Hahn added.

“I know that judges and corrections officers would not be able to receive their full promised cost of living increase,” Hahn. “I believe it would take it down to two percent for current retirees, which is just not fair.”

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

(Facebook Photo, File/Phoenix Police Department)...
KTAR.com

2 dead, 1 in critical condition after shooting at west Phoenix residence

Two people died and one person was taken to the hospital in critical condition after a shooting Tuesday at a west Phoenix residence, authorities said. 
17 hours ago
(Dominic Lipinski/PA via AP)...
KTAR.com

Phoenix hits 80 degrees for most days in November history

It's no triple digits, but a warm November in Phoenix was punctuated with a new heat record set on Tuesday.
17 hours ago
(Facebook photo/Cesar Chavez High School)...
KTAR.com

15-year-old boy arrested in shooting after gun sale gone wrong at Phoenix high school

A 15-year-old boy was arrested Tuesday in the shooting of a 16-year-old boy following a gun sale gone wrong at Cesar Chavez High School in Phoenix, police said.
17 hours ago
(Facebook Photo/Phoenix Union High School District)...
Jim Sharpe

How about actual ‘safe spaces’ for Phoenix Union students?

Following a Monday shooting at Cesar Chavez High School, KTAR News host Jim Sharpe asks if school resource officers should have a renewed presence at Phoenix Union High School District.
17 hours ago
Adele cheers on the Phoenix Suns during the NBA Finals at Footprint Center on July 17, 2021. (Photo...
Kevin Stone

2022 Vegas residency brings Adele within driving distance of Phoenix fans

Adele has no plans to tour on the heels of her latest smash album, but the reigning queen of musical heartbreak is going easy on Valley daydreamers willing to make the trip to Las Vegas.
17 hours ago
(Photo by Chung Sung-Jun/Getty Images)...
KTAR.com

Arizona Lottery hits jackpot with $1.4B in ticket sales; winners get back $978M

Arizona cashed in on the lottery in a big way with a record $1.4 billion in ticket sales for fiscal year 2021, the state agency said Monday.
17 hours ago

Sponsored Articles

...
Sanderson Ford

Sanderson Ford offers cars and deals for all this holiday season

Sanderson Ford’s No! Vember Black Friday sale is giving an opportunity to purchase a new 2021 vehicle just in time for the holiday season.
...
DISC DESERT INSTITUTE FOR SPINE CARE

What you need to know about spine health

With 540 million people suffering from lower back pain, it remains the leading cause of long-term disability. That’s why World Spine Day on Oct. 16 will raise awareness about spinal health with its theme, BACK2BACK. “BACK2BACK will focus on highlighting ways in which people can help their spines by staying mobile, avoiding physical inactivity, not overloading […]
...
Day & Night Air Conditioning, Heating and Plumbing

Why fall maintenance is important for your heating system and A/C

It’s easy to ignore your heater and air conditioner when they’re working but the moment something breaks, you will likely regret not keeping up with maintenance. After all, if something goes wrong, you may be stuck with a repair that will take longer and be more expensive than simple maintenance.
Proposition 125 would allow adjustments to 2 state pension plans