PHOENIX- A fiscal analysis today released by the City of Phoenix shows that a proposed ballot measure to make drastic changes to the Phoenix pensions system would cost taxpayers up to $477 million. The City of Phoenix Employees’ Retirement System’s actuary, Cheiron, conducted the analysis and found that the twenty year cost of the proposed changes is $216-477 million, utilizing an employer contribution range of 3-6%.
Funded by out-of-state dark money and shrouded in secrecy, the so-called Pension Reform initiative would abolish the current pension system for Phoenix employees and is scheduled to be on the November ballot.
Catherine Alonzo, on behalf of the National Public Pension Coalition says the numbers don’t lie. “With a price tag of over $400 million taxpayer dollars, this initiative will break the bank and cripple Phoenix,” said Alonzo. “This report shows how urgent the need for transparency and honesty is. Voters deserve an opportunity to examine the cost of these proposed changes in the light of day without the spin being pushed by out-of-state interests.”
If approved by voters, the so-called pension reform initiative would abolish the current pension system and force city employees into riskier 401k retirement accounts. Phoenix voters last year approved reforms to the city’s pension system that has put the city’s pension system on the road to solid financial footing. The proposed new initiative would undo those voter-approved changes as well as the taxpayer savings they created.