Phoenix Pension Reform Initiative Eliminates Taxpayer Risk, Saves Hundreds of Millions

The City of Phoenix Employee Retirement System is facing a $1.5 billion dollar unfunded liability and is operating with unrealistic actuarial assumptions that underestimate future taxpayer costs. Further, the 2013 reform initiative requires future employees to contribute unsustainably high percentages of their salaries to retirement savings, making retention very challenging.

This report analyzes a proposed reform to the system that would address these challenges and finds it would reduce taxpayer liabilities, eliminate retention risk, save taxpayers $394.7 million by conservative measures, and possibly reduce taxpayer costs as much as $1.6 billion over the next 25 years.

Attachments

• Policy Brief: Phoenix Pension Reform Initiative Eliminates Taxpayer Risk, Saves Hundreds of Millions
• Policy Summary: Phoenix Pension Initiative Saves $32 Million in the First Year of Reform; $395 Million Total