Gov. Doug Ducey signed two bills aimed at reforming Arizona’s underfunded pension system for law enforcement officers and firefighters. But voters will get the final say.
The proposed overhaul would make a number of changes to the Public Safety Personnel Retirement System. The plan would cap increases to cost-of-living payments, evenly split pension costs between employees and employers, divides public safety employees into different categories based on their date of hire, and crack down on the practice of pension spiking, among other changes.
“It’s been a long process, but the result is a bipartisan, well-informed and meaningful plan that will protect our taxpayers while providing a sustainable pension system for the women and men who risk their lives every day to keep us safe,” Ducey said in a press statement.
Ducey praised Sen. Debbie Lesko, R-Peoria, who took a lead role in crafting the pension reform proposal with public safety employee unions and others, for her work in bring the plan to fruition.
“I’m grateful to Senator Lesko – who has been working closely with stakeholders and lawmakers to come up with a workable plan – as well as all the legislators who’ve stepped up to support it. Today, we are one step closer to setting our pension system on a path to financial stability while improving the way it serves our brave cops and firefighters
Now that Ducey has signed the bills, the issue will go before voters. Proposition 124 will be on the May 17 special election ballot alongside Proposition 123, a K-12 education funding plan.o