Arizona Constitution Article 29 - PUBLIC RETIREMENT SYSTEMS
Arizona Constitution – Article 29: PUBLIC RETIREMENT SYSTEMS
Article 29 of the Arizona Constitution establishes protections and provisions related to public retirement systems in the state. Here's a summary of its key points:
Section 1: Public Retirement System Benefits
Public retirement system benefits shall not be diminished or impaired.
This applies to participants in public retirement systems (such as state employees, teachers, police, and firefighters).
The protection covers:
Benefits already accrued.
Future benefits that are part of the employment contract.
This means that once an employee becomes entitled to a certain benefit under the retirement system, the state cannot reduce or eliminate it, even if the employee hasn’t retired yet.
Section 2: Funding Obligations
The state and other public employers are required to make actuarially sound contributions to the retirement systems.
Contributions must be made in a timely manner as determined by law or actuarial valuation.
This ensures long-term financial health and stability of the retirement systems.
Purpose and Impact
Protects public employees from sudden changes to their pension rights.
Prevents underfunding of pension systems, which has been a problem in other states.
Encourages fiscal responsibility from government entities.
RELATED Blog
0 comments