Opponents say Phoenix pension reform ends death benefits for police, fire

Opponents of a ballot initiative to end Phoenix's employee pension system are seizing on concerns it could curb benefits for disabled city workers and the survivors of dead police officers and firefighters.

Employee unions opposing Proposition 487 — which would end the city's pension system for new civilian workers and replace it with a 401(k)-style plan — have made that claim a centerpiece of their campaign in recent weeks, suggesting it would stop guaranteed disability retirement and death benefits that exist under the city's current retirement plans.

Supporters of the measure said the group has misrepresented the initiative, calling the union's statements a lie. However, city officials suggest there may be truth to the claims.

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The message comes as Phoenix's firefighter union has jumped full force into the effort to persuade voters to reject the initiative in the Nov. 4 election, putting up hundreds of "NO! ON 487" signs across the city and campaigning door-to-door.

Fire Fighters Opposed to Prop. 487, a political committee, recently posted a photo of a fireman's daughter on its Facebook page, saying, "If Prop. 487 passes and the unthinkable were to happen to her dad at work, Claire and her mom would receive nothing. Taking line-of-duty death benefits from firefighters and police officers is simply wrong."

As it stands, the family of a city employee who dies prematurely can receive a portion of his or her pension as a death benefit. An employee who is injured can retire early and collect a portion of his or her pension.

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Supporters of the initiative, which is being funded by several "dark money" groups with anonymous donors, contend the arguments about disability retirement and death benefits for first responders is a red herring meant to distract voters who have the chance to stop a costly pension system. The city's costs for the pensions of civilian workers have soared to $129 million this year, up from $27.8 million in fiscal 2002.

Scot Mussi, chairman of the pro-reform committee, pointed to the initiative's intent language that states it does not impact public-safety employees, who are part of a different state pension system. The bulk of the initiative deals with the city's retirement plan for general employees, which serves nearly 14,000 current and retired workers.

"This one is just a flat-out lie," Mussi said. "It has absolutely nothing to do with death and disability benefits. I guess this could cause space aliens to come down, too. I don't know."

Mussi said the city has the ability, if the initiative passes, to offer separate disability- and death-benefit programs for new workers not in the civilian pension system. The changes would not effect current employees who choose to stay in the pension system.

But city officials agree Prop. 487 could impact disability and death benefits.Because new employees could not enroll in a pension system, they wouldn't have access to the disability and survivorship programs it offers.

And attorneys for the city have said that could extend to current and new police officers and firefighters. Although the initiative includes a preamble stating it's not intended to impact first responders, the city has said the actual language is poorly written and could have the opposite effect, though the issue would likely have to be resolved in court.

Deputy City Manager Rick Naimark said if passed, the initiative likely would prevent the city from creating a new, separate disability retirement program for employees. The measure includes language that prohibits the city from contributing to more than one retirement plan for each employee.

However, the city could offer some form of life insurance in place of a death benefit.