Listen:
The state’s pension funds have billions of dollars in unfunded liability. The fund for law enforcement officers and fire fighters is in particularly bad shape.
Senate Bill 1428 is meant to move the fund towards solvency.
Sen. Debbie Lesko, R- Peoria, is the bill’s sponsor. She told Senate Finance Committee changes must be made.
“For every new hire, the status quo would cost would be 13.2 percent of payroll if we did nothing. But with this new plan for employees that currently get social security the cost would drop to 7.53 percent,” Lesko said.
That means Arizona municipalities would have to contribute fewer dollars to their pension funds.
The proposal has bipartisan support and passage is all but assured in the Senate. The bill faces an uphill battle in the House.
The Arizona Tax Research Association and the Goldwater Institute both oppose the bill.
Lesko and other supporters are hoping to fast-track the bill so the necessary constitutional changes can be on the special election ballot in May.
By submitting your comments, you hereby give AZPM the right to post your comments and potentially use them in any other form of media operated by this institution.