Associated Press
PHOENIX — Voters are being asked to sign off on a major part of a police and firefighter pension system overhaul that was enacted by the Arizona Legislature earlier this year.
The changes contained in Proposition 124 on next Tuesday’s special election ballot lower cost of living increases for current and future retirees.
That change is designed to help the retirement system for public safety officers recover from a major drop in the plan’s funded status. The funding level has sunk to just 50 percent of its expected liabilities.
Employers have seen their contribution rates soar to an average of more than 42 percent of an employee’s salary.
The larger pension system overhaul creates a new tier for newly hired officers, limiting maximum pension payments and equalizing employer and employee contribution rates.
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