Az. Public Workers to Get Back Pension Contributions

May 9, 2012 ( - Arizona Governor Jan Brewer has signed off on legislation to reverse a law increasing state workers’ contributions to their pension.

The new legislation (HB2264) returns the Arizona State Retirement System (ASRS) contribution rate back to an equal 50/50 split between the state and its workers.  The bill also appropriates $40 million to state agencies and school districts to reimburse employees for the return to the old formula, according to the National Public Pension Coalition.  

The state law that went into effect on July 1, 2011, increased the portion of contributions state employees must make to their pension from 50% to 53%, while lowering the state’s portion to 47%.   

In February, Maricopa County Superior Court Judge Eileen Willett said the law illegally changed the contract between the state and its employees (see “Arizona Judge Rules Pension Contribution Law Unconstitutional”).