Arizona Republicans Pass New Elected Official Retirement Plan
ICYMI . . .
Speaker of the House Andy Tobin (R-Dist. 1)
STATE CAPITOL, PHOENIX (May 8, 2013) – The Republican-led Arizona Legislature made history today as it passed a landmark bill creating a sustainable public defined contribution plan for elected officials. HB 2608 (EORP; closure; defined contribution) cleared its final legislative hurdle receiving no Democrat support.
Once signed into law, the legislation, sponsored by Representative Phil Lovas (R-Dist. 22), will eliminate and replace Arizona’s antiquated elected official retirement plan. The closing of EORP and the implementation of the new plan, dubbed the Elected Officials Defined Contribution (EODC), will not affect current beneficiaries and will address the insolvency of the existing retirement system. This will shift the current plan from one of defined-benefits to one of defined-contributions while ensuring a sustainable and responsible retirement program.
Proud of his colleagues’ legislative milestone, Speaker Tobin stated, “I would like to congratulate Representative Lovas on his victory in guiding this essential bill through the legislature. I challenge our congressional delegation to replicate Arizona’s continued leadership in the creation of a sustainable public defined pension plan. Washington can either choose to continue down the path of economic insolvency or look to the example Arizona has set. We have successfully ended a system that could have proven to be as detrimental to our economy as it is now proving to be to that of the entire nation.”