Arizona Pension Overhaul Plan Nearing Completion

Published: Thursday, November 26, 2015 - 11:13am

A plan to overhaul Arizona's woefully underfunded pension plan for public safety workers is nearing completion after months of meetings.

Contribution rates into the Arizona Public Safety Personnel Retirement System have soared to what officials feel are unsustainable levels in recent years. Lawmakers, pension officials, firefighte and police unions as well as cities and towns are among the agencies that pay into the system.

After previous efforts to reform the PSPRS were unsuccessful, the latest legislative plan includes ideas to increase the pension eligibility age, equalize employer-employee contribution rates and cap earnings that are used to calculate pensions.

In addition, firefighters are proposing to change yearly benefit increases that are sapping the trust fund. That change would require voter approval.