June 18, 2019
Public Safety Personnel Retirement System
State of Arizona
June 18, 2019
Contact: Christian Palmer
Pension increases coming for retirees
Ballot props 124 and 125 trigger 2 percent increases
ARIZONA – All retirees and surviving beneficiaries of PSPRS-managed retirement plans, including public safety, corrections officers, and elected officials and members of the judiciary, will receive an increase to their monthly pension benefit in July.
As the result of the passage of ballot propositions 124 and 125, pension increases to public safety retirees and beneficiaries are based on Consumer Price Index changes for the Phoenix and Mesa metropolitan areas as published by the U.S. Bureau of Labor Statistics.
This year, there will be a 2 percent cost-of-living-adjustment (COLA) for all those retired or receiving benefits from PSPRS-managed plans for longer than one year. Those who retired less than one year ago are entitled to a prorated increase based on the starting date of their retirement.
The propositions limit annual pension increases to 2 percent and replace the former Permanent Benefit Increase (PBI) that was based on PSPRS investment performance. These changes were supported by the PSPRS Board of Trustees and the Legislature and were also endorsed by public safety employee associations.
Moving forward, public safety retirees and beneficiaries can expect pension increases after any year the U.S. Bureau of Labor Statistics recognizes inflationary pressures occurring in the Phoenix-Mesa metropolitan area. The bureau has recognized inflationary pressures in 14 of the past 15 years that Phoenix has been included among U.S. cities monitored by the agency.