Which is why every politician and every voter in Illinois ought to know how Arizona managed its 2016 reform of the 48% funded Public Safety Personnel Retirement System, which had a cost-of-living adjustment calculation that everyone agreed was broken, including the unions themselves. But Arizona shares with Illinois a constitutional protection against pension changes, specifically stating that “public retirement systems shall not be diminished or impaired.”
So how did they implement this change? In a two-step process, the legislature passed reform legislation and then placed on the ballot a constitutional amendment which inserted a new clause into the state constitution: “Public retirement systems shall not be diminished or impaired, except that certain adjustments to the public safety personnel retirement system may be made as provided in Senate Bill 1428, as enacted by the fifty-second legislature, second regular session.”
This meant that the citizens of Arizona could vote on this pension change without having to worry about whether they were authorizing any unknown future changes to pensions that they might not have wanted.
Author(s): Elizabeth Bauer
Publication Date: 25 May 2021
Publication Site: Chicago Tribune