Phoenix Pension Reform Might Be Hampered by Police and Fire Departments

A central argument of the campaign against a ballot initiative seeking to end Phoenix's employee-pension system — Proposition 487 — has been the claim that the initiative will end retirement benefits for the city's nearly 4,000 police officers and firefighters.

 

But while supporters and opponents of the reforms bitterly disagree on that point, attorneys on both sides of the issue say it's unlikely that the city could withdraw from the state retirement plan for public-safety workers.

Prop. 487 would close Phoenix's ailing pension system for future civilian employees such as office workers, garbage-truck drivers and water-utility workers and replace it with a retirement plan similar to a private-sector 401(k). Phoenix voters will decide its fate in November.

The initiative targets the retirement plan for general city workers hired in the future. Although the measure's preamble states it's not intended to affect first responders, attorneys for Phoenix have said the actual language, specifically the amendment to the City Charter, is poorly written and could wind up blocking pension contributions for existing and future police and fire.