June 29, 2018
Public Safety Personnel Retirement System
State of Arizona
June 29, 2018
FOR IMMEDIATE RELEASE
Contact: Christian Palmer
Public safety retirees to receive pension increases
Two percent increase for most retirees/beneficiaries after Prop 124 passage
ARIZONA – PSPRS retirees and surviving beneficiaries will get a pension benefit increase around the end of July. For most retirees and beneficiaries, the increase will amount to a 2 percent cost-of-living-adjustment. However, those who retired less than one year ago will receive a prorated increase based on the starting date of their retirement.
As the result of the passage of Proposition 124, a May 2016 ballot referendum that changed the Arizona Constitution, pension increases to public safety retirees and beneficiaries are based on Consumer Price Index changes for the Phoenix and Mesa metropolitan-area as published by the U.S. Bureau of Labor Statistics.
The proposition limits annual pension increases to 2 percent and replaces the former Permanent Benefit Increase (PBI) that was based on PSPRS investment performance. These changes were supported by the PSPRS Board of Trustees to the Legislature and were also endorsed by public safety employee associations.
This November, the general election ballot will include a similar proposition, Proposition 125, to amend the benefit increase method of both the Corrections Officer Retirement Plan and the Elected Officials Retirement Plan.
The PSPRS Board of Trustees recommends that members and the public vote “yes” on Proposition 125 to prevent pension insolvency and to protect defined benefits promised to Arizona’s public employees