Proposition 103 amends the City Charter to adjust the pension plan for city employees.
This is only the most recent of several ballot measures attempting to deal with Phoenix’s ballooning pension expenses. My original post on last year’s (failed) Prop 487 included an explanation of the challenges facing Phoenix’s pension system, which I’ll link you to rather than repeating it at length here. Suffice it to say, the pension plan still needs work.
Prop 103 stops far, far short of the serious reform that Prop 487, which I supported, offered. Whereas 487 would have replaced the pension plan with a 401(k)-like plan for new hires, Prop 103 leaves the pension system largely intact with some minor tweaks, which I will characterise as the good, the meh, and the ugly: Continue reading Phoenix Prop 103: Pension Plan Change—The Good, The meh, and the Ugly
AFSCME (the employee union for most non-LE/Fire city workers) is seeking to recruit a challenger to Phoenix mayor Democrat Greg Stanton in the August primary (via Arizona Republic). This despite Stanton’s vocal opposition to last year’s Prop. 487, which would have closed the pension plan to new entrants.
Stanton’s opposition to 487 included placing misleading language on the ballot which nearly led to a lawsuit and ultimately led to the measure’s failure. But apparently that’s not enough for AFSCME.
They just are not going to rest until they run their own pension system in the ground—unfortunately that requires the whole city to go along for the hand-basket ride with them.
Proposition 487 would amend the City Charter to change the retirement plan for new city employees from the current pension (“defined benefit”) plan, to a 401k-style (“defined contribution”) plan. The proposition also codifies the ban on pension “spiking”.
It makes the important structural reforms needed to fulfill our long-term responsibilities to both public retirees and future tax-payers and, contrary to the claims of employee unions, does not eliminate benefits for first responders. Proposition 487 deserves your support. Continue reading Phoenix Prop 487: City Employees Retirement Plan Reform