Now on to the Senate
The Arizona House of Representatives passed HB 2608 (EORP; closure; defined contribution). When first introduced the landmark legislation, was called a milestone in budgetary solvency.” The legislation will create a defined contribution retirement system for newly elected officials and judges and will close the current Elected Officials Retirement Plan (EORP).
The legislation was spearheaded by House Speaker Andy Tobin (R-Dist. 1) and Representative Phil Lovas (R-Dist. 22). The Republican-led Arizona House of Representatives passed the bill with the support of 35 House Members. It will now advance to the Senate.
Legislators say that once signed into law, the bill will also resolve the crisis of the current system which suffers from a deficit of more beneficiaries than actively contributing employees.
Saying that he was driven by a desire to end the insolvency of the current system, Speaker Tobin noted, “This afternoon, the votes of House Republicans reflected the will of the people and their desire to end this unsustainable program that has burdened Arizona taxpayers for long enough. Thanks to the diligence of Representative Lovas, our current retirement program will be replaced with a responsible, portable and fair system that more closely resembles those offered to the majority of private sector taxpayers.”
Lovas led the charge to eliminate and replace Arizona’s antiquated elected official retirement plan. Dubbed the Arizona Leadership Savings Account (ALSA), the new plan is prospective, will not affect current beneficiaries. It shifts the current plan from one of defined-benefits to one of defined-contributions while ensuring a sustainable and responsible retirement program.