DID YOU KNOW???????????????
The Phoenix City Retirement Plan cost taxpayers $28 million in 2000 while it cost $110 million in the 2012 fiscal year and $253 million in 2013.
For example, a Phoenix librarian retired at 58 and received a pension of over $102,000 a year, and a one-time payout of over $286,000 at retirement. Everybody at City Hall gets a similar deal. Pretty sweet, huh?
According ton supporters of 487, the initiative focuses on two things:
First, it would change the city’s retirement system from a defined benefit system, in which retirees are guaranteed payments despite investment performance, to a 401(k)-style defined contribution plan, in which the city contributes a set amount and the retiree’s benefits depend on his or her own contributions and investment performance.
Second, it would take steps to put a stop to pension spiking by implementing limits on the pension benefits available to current employees.