Arizona’s public employee pensions are beginning to show signs of improvement following the Great Recession, an Arizona think tank said in a study released Monday.
The Grand Canyon Institute's study showed that reforms put in place over the past decade have the retirement plans back on solid footing. That is after years of increased taxpayer contributions to the systems to meet the promises made to public sector employees as part of their defined benefits plans.
The study warned that changes being considered would cause problems. Specifically, it said changing to plans that are akin to the private sector 401 (k) retirement plans would add to the taxpayer burden because of transition costs, a lack of long-term investment and lower returns.
**Read the Grand Canyon Institute report here.