Post by Logan on Feb 4, 2016 4:32:37 GMT -6
PHOENIX — Ignoring arguments that the claimed savings may not be real, a Senate panel on Wednesday approved massive changes to the pension system that covers police and firefighters throughout the state.
The three-bill package, given unanimous support by the Senate Finance Committee, is designed to address the fact that the unfunded liabilities of the Public Safety Personnel Retirement System went from zero in 2003 to $6.6 billion now. What that means is that the dollars in the fund cover less than half the liabilities.
Pete Constant, director of the Pension Integrity Project, said that unless major changes are made, some cities are in danger of going broke as their pension assessments to cover the costs of their current employees are nearly equal to the salaries, making it fiscally impossible to hire new workers. He specifically said that Prescott and Bisbee are at the tipping point.
Virtually all of the changes in the package, which now goes to the full Senate, affect only those who will be hired after the legislation takes effect. These range from retirement age and contributions to the fund to the capping of benefits.
Read more: tucson.com/news/state-and-regional/senate-panel-oks-changes-to-public-safety-pension-plan/article_609b7760-b7ce-57e2-87f1-7e40b1427a78.html
The three-bill package, given unanimous support by the Senate Finance Committee, is designed to address the fact that the unfunded liabilities of the Public Safety Personnel Retirement System went from zero in 2003 to $6.6 billion now. What that means is that the dollars in the fund cover less than half the liabilities.
Pete Constant, director of the Pension Integrity Project, said that unless major changes are made, some cities are in danger of going broke as their pension assessments to cover the costs of their current employees are nearly equal to the salaries, making it fiscally impossible to hire new workers. He specifically said that Prescott and Bisbee are at the tipping point.
Virtually all of the changes in the package, which now goes to the full Senate, affect only those who will be hired after the legislation takes effect. These range from retirement age and contributions to the fund to the capping of benefits.
Read more: tucson.com/news/state-and-regional/senate-panel-oks-changes-to-public-safety-pension-plan/article_609b7760-b7ce-57e2-87f1-7e40b1427a78.html