The Arizona Republic, the state’s largest newspaper, endorsed a YES vote on Proposition 487 in an editorial entitled, “Phoenix punted on pensions, Prop. 487 doesn’t.” The proposition, which will be on this November’s ballot, would prevent abuses of the system, known as “pension spiking,” and create a 401(k) style retirement program for new city employees.
Liberty Initiative Fund has been a major donor to the Prop 487 campaign.
The Republic editorial makes a number of important points:
“Phoenix officials had it in their power, once, to stave off Proposition 487, which ends traditional pensions for newly hired civilian employees.
“They declined. Actually, they did worse than simply decline. Faced with an increasingly expensive system that has been grossly abused by Phoenix’s highest paid and most influential retirees, the Phoenix City Council in 2013 proposed to voters changes that in some respects have made the system worse.”
“City leaders, for example, could not bring themselves to truly end the inappropriate practice of pension spiking, the artificial, end-of-career pay boost that helped balloon former City Manager David Cavazos’ annual pension to $232,000. Prop. 487 will.”
As for Prop 487, the paper wrote:
“Prop. 487, which would replace the pension with a 401(k)-type plan, is not a cure-all for past mistakes. It will not fix all of Phoenix’s growing pension woes. . . .
“But, in the end, these dramatic changes will give Phoenix control over skyrocketing pension costs that threaten to strangle the city’s ability to provide the services Phoenix residents have come to expect.”
The entire editorial can be found here.