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/Tucson Police Department)...
Associated Press

Tucson man gets 10-year prison term for girlfriend’s murder

Pima County prosecutors said Jahkwez Desean Wilson was given a 10-year prison term on a murder charge and reckless child abuse.
1 day ago
(City of Glendale Photo)...

Weekend wrap-up: Here are the biggest Arizona stories from Jan. 14-16

The implementation of a voucher program for families to send children to private schools was introduced by Gov. Doug Ducey.
1 day ago
(Twitter photo | @SunCity_AZ)...
Associated Press

2 dead in murder-suicide at Arizona assisted living facility

Two residents at an assisted living facility in Sun City are dead after an apparent murder-suicide Sunday, authorities said.
1 day ago
FILE - Arizona Republican Gov. Doug Ducey gives his state of the state address at the Arizona Capit...
Associated Press

Ducey quietly taps $95M in virus cash to boost trooper pay

Arizona Gov. Doug Ducey quietly tapped $95 million in federal coronavirus relief money in November to boost pay for state troopers.
1 day ago
(Twitter photo/@ArizonaDOT)...
Tom Kuebel

I-17 southbound reopened at Deer Valley Road in Phoenix after crash

The Arizona Department of Transportation closed most of Interstate 17 southbound near Deer Valley Road due to a crash on Sunday afternoon.
1 day ago
Former President Donald Trump pauses as he speaks at a rally Saturday, Jan. 15, 2022, in Florence, ...
Associated Press

Former President Trump tests GOP loyalty during rally in Arizona

Former President Donald Trump stepped up his election-year effort to dominate the Republican Party, holding a rally in Arizona on Saturday.
1 day ago

Sponsored Articles

Day & Night Air Conditioning, Heating and Plumbing

HVAC upkeep in Arizona saves money, keeps families prepared in the long run

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.
Arizona State University

This is the best year to get your MBA

Getting a master’s degree is a major commitment of time, energy, and money, so returning to school — even if you’re thinking about a part-time program that allows you to keep working — is one of the biggest decisions of your career.

How your family can explore the Musical Instrument Museum

Whether you want to spend a day with family, do crafts with kids at home, or have an adult night out, the Musical Instrument Museum in Phoenix has options. As the world’s only global musical instrument museum, MIM offers interactive and immersive exhibits to foster an appreciation of different cultures and their instruments. “A visit […]
Proposition 125 would allow adjustments to 2 state pension plans