Legislature to repeal the Arizona Republic’s unconstitutional pension reform legislation

Posted by AzBlueMeanie:

I have been telling you for some time that the State pension 'crisis' was manufactured – never mind. It was manufactured by the virulently anti-union Arizona Republic in the fall of 2010 when it ran a multi-part series on the "crisis" in public employee pension funds in Arizona. Public employee pension reforms – a manufactured 'crisis'.

The Arizona Republic encouraged the state legislature to pursue unconstitutional and unlawful legislation which had the Goldwater Institute's fingerprints all over it (ALEC and the Koch brothers' Americans for Prosperity no doubt in the shadows). And our Tea-Publican legislature dutifully complied.

Several state pensioner groups filed suit to challenge the legislation, including Arizona Court of Appeals judges who filed a notice of claim to challenge two provisions in the new law regarding the Elected Officials Retirement Program. Appellate judges threaten suit over pension reforms – Arizona Capitol Times.

Back on January 14, Republic columnist Laurie Roberts whined mightily Ariz. judges will rule on own entitlements:

It is, they say, unfair, unconstitutional and absolutely unimaginable.

To think that the Legislature expects judges to kick in more for their pensions. To think that our leaders would change the law so that retired judges no longer collect the annual 4 percent cost-of-living boost to which they are oh-so- entitled.

Yes, to hell with the Arizona Constitution and the rule of law. Laurie Roberts has public employee unions to bash on behalf of an ALEC agenda that began in Wisconsin and Ohio — how's that working out for you? The Arizona Republic has a long and sordid history of anti-unionism dating back to the 1950s that continues to this day. The Republic has never supported workers, especially union workers. You don't buy advertising in the newspaper.

Just last week, the reporter responsible for the "investigative" report spoon-fed to him by the Goldwater Institute was forced to concede that the pension reform bill the Arizona Republic advocated for and shilled for is unconstitutional and a violation of law, so the legislature is now going to repeal the law before the courts can overturn it. Arizona may undo fix to pension system:

Key state lawmakers want to rescind last year's hike in the contribution that more than 200,000 Arizona State Retirement System members make toward their pensions, citing fears of losing a lawsuit over the issue.

House Bill 2264 would return to the previous funding system, under which contributions to the ASRS for public-employee retirements were split 50-50 between employees and their employer.

That's good news for teachers and municipal and state employees, who soon could see a modest increase in their paychecks and possibly a refund from overpayments made into the retirement fund this fiscal year, according to legislation in the works.

Wait for it… "Mr. Objective Reporter" next line is a bit of political commentary best left to the opinion page: "The losers could be taxpayers."

The change, begun July 1, triggered a lawsuit from a group of ASRS members who said the new law violated their contract rights and diminished their pensions, which would violate the state Constitution.

The case is before Maricopa County Superior Court Judge Eileen Willett, who is expected to make a ruling soon.

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[T]he House's chief budget writer said the state expects to lose, based on advice from its legal counsel, and recommended lawmakers go back to the old system.

"We don't believe it will survive a court challenge," said House Appropriations Chairman John Kavanagh, R-Fountain Hills. "You don't have to be a fortune-teller to see which way this one is going."

HB 2264, sponsored by Rep. Bob Robson, R-Chandler, also would require public employees to be refunded any contributions made this year in excess of 50 percent of the amount needed for the fund. It is unclear how the money would be refunded.

* * *

Robson said last year's funding-formula change, part of a pension-reform package, did nothing to improve the financial health of the ASRS.

"It didn't achieve what we wanted it to achieve," Robson said. "We wanted to strengthen the viability of the pension system. All it did was shift the cost."

As Craig reported in his "The Coming Week Post," HB 2264 is on the agenda for Tuesday at 2:00 p.m., Employment and Regulatory Affairs will meet in HHR3.

A class action lawsuit on behalf of retired law enforcement officers was filed on January 11 and for active members on January 12, 2012 in the Superior Court of Maricopa County against the Board of Trustees of the Public Safety Personnel Retirement System. The law firm of Yen, Pilch, Komadina & Flemming, P.C. is representing the plaintiffs. Here is a copy of the Verified Complaint. The Fraternal Order of Police (FOP) has established a limited liability corporation, Friends of Public Safety, LLC, for the purpose of raising funds to pay for the lawsuits. The memo to AZ FOP Lodge Presidents from Bob Mitchell, Chair of the FOP Pension Reform Committee is here. Pension_cmte_ltr_to_lodges.

This more than year long assault on public employees and their compensation by the Arizona Republic is both strategic and tactical — they are laying down artillery fire to soften up the battlefiled for the next major initiative by the Goldwater Institute, Americans for Prosperity and ALEC, among others — Gov. Jan Brewer's assault on the civil service merit selection system.

In her State of the State Address on January 9, Governor Brewer proposed to give a raise to state employess if, and only if, they surrender their civil service merit selection system protection. This is the first step to returning to the spoils system of political patronage and the days of Boss Tweed. The legislature tried to impose this on county employees — except for those in the state of Maricopa – last year, but Gov. Brewer vetoed the bill in pursuit of her more ambitious assault on public employees this session. Jan Brewer wants to be the Scott Walker of the West. She should suffer the same fate — recall.