PHOENIX, Ariz. - Healthy pension plans for public workers help the Arizona economy, not just the retirees who get the checks, according to the latest research.

Backers of Arizona's public pension system say their defined-benefit retirement plans are doing well, although critics have claimed that some plans may be under-funded. The National Institute on Retirement Security says the benefits from these pension plans - including teachers' - generated more than $7 billion in economic activity in Arizona in 2016, the most recent figures available.

Julie Horwin, president of the Arizona Education Association-Retired, agrees they're helping to keep the economy strong.

"Pensions are not just an entitlement given to people who are older," says Horwin. "They're actually one of the chief economic engines that drives Arizona. Without those pensions, our economy would suffer a great deal."

One example of criticism was a recent op-ed by the research group Arizona Chamber Foundation. It warned that local and state governments are regularly having to increase their pension-plan contributions, suggesting this could eventually lead to solvency problems.

The National Institute on Retirement Security research breaks down the numbers further, showing that each dollar invested by Arizona taxpayers in public pensions supports more than $6 in economic activity.

Institute Executive Director Dan Doonan says defined-benefit pensions also have advantages for retirees over other forms of savings.

"What we'll see more with the 401(k), as retirees retire, it's not really clear how much you can pull out each year," says Doonan. "So, you spend your working years saving - and then you retire, and you're sort of afraid to use the money you save for retirement, because you don't know what's coming."

Doonan adds it is difficult for many workers to save enough for retirement, making a pension even more critical.

"We looked at the median savings of workers and it's basically zero dollars," says Doonan. "And even amongst those nearing retirement, it's about $88,000. That's a lot of money - but if you think in terms of a few decades in retirement, it's not a lot of income per year."

Despite claims that public pensions are draining state and local coffers, he adds only about one-quarter of contributions to Arizona pensions are from employers. The rest are from employees and the successful investment of pension funds.

As Pennsylvania voters head to the polls Tuesday, a new report takes a deep dive into how the economic policies of former President Donald Trump and Vice President Kamala Harris would affect Pennsylvania families.

The report showed the two campaigns differ significantly on policies proven to affect inequality, like labor unions, the minimum wage and taxation.

Gillian Kratzer, deputy director of the advocacy group Better PA, said when comparing a possible Harris administration to a potential Trump administration, you have to consider Project 2025, as the Trump campaign has remained silent on many key policy issues, such as minimum wage.

"The Democratic platform, which Kamala Harris endorses, proposes to enact a federal minimum wage of $15 an hour by 2026," Kratzer pointed out. "The phrase minimum wage is not in the Republican platform. It's not mentioned by the Trump campaign, and it's not in Project 2025 either."

A recent Gallup poll showed 70% of Americans support labor unions. Kratzer noted while the Republican platform and Project 2025 do not address unions broadly, they advocate removing union rights for national security-related jobs and question the role of public sector unions altogether.

Kratzer added the report compares the tax policies of Trump and Harris, highlighting how extending the 2017 Trump tax cuts would benefit the wealthy, while higher import tariffs and a lower corporate tax rate would mostly burden Pennsylvania's everyday consumers.

"Kamala Harris supports tax proposals that benefit families and workers raising children to pay for health care and housing affordability," Kratzer observed. "She wants to reform Medicare to raise taxes on those with incomes over $400,000. Where Donald Trump, we're looking at, you know, policies that would help basically the top 5%."

The report also found the Democratic platform supports attaching strong labor standards, such as prevailing wage laws and project labor agreements, to federal infrastructure and climate investments. Meanwhile, Project 2025 favors eliminating prevailing wage laws and use of project labor agreements on federally funded construction projects.

More than 500 Missouri businesses are rallying for Proposition A, pushing for a $15 per hour minimum wage and paid sick leave by 2026.

Backed by the group Missouri Business for a Healthy Economy, Proposition A plans to raise the minimum wage to $13.75 an hour next year and $15 by 2026, with additional annual cost-of-living adjustments. Tipped workers must earn at least half the minimum rate, plus tips.

Andi Montee, owner of the Mokaska Coffee Shop in St. Joseph, believes the wage increase would enhance Missouri's appeal.

"Having that standard and that security is just really important for people to look at Missouri for one as a place where they could live, where they could stay," Montee asserted. "Especially for young people who often times want to kind of move outside of the places they might have grown up in."

Not everyone is on board with the increase. Business groups like the Missouri Chamber of Commerce warned higher wages and required paid sick leave could increase costs, leading some businesses to cut staff, reduce hours or raise prices.

Despite the concerns, Missouri's minimum wage keeps rising, set at $12 in 2023 and adjusted to $12.30 in 2024. Montee believes higher wages for employees benefit employers as well.

"We will fight tooth and nail to keep our staff kind of working there, because training somebody is difficult, it costs money and it has all kinds of things that pop up in the long term," Montee outlined. "We feel pretty strongly that having that higher minimum wage is really a mutually beneficial thing."

Still, critics of the increase do not believe employers will benefit at all, contending it could harm young and entry-level workers, who might see fewer job openings as businesses face rising costs.


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A meeting last week between the Board of Education and its teachers' union in one Illinois town has left one group unhappy.

Members have voiced their displeasure with what it views as a lack of urgency in negotiations for better pay and more support. Contracts for the Meridian Federation of Teachers in Macon expired in August. Seventy teachers who are part of the bargaining unit have met with the board only six times since June.

Brian Pekovitch, teacher and president of the union, said they are seeking a resolution.

"We have another session planned with the mediator on Wednesday," Pekovitch noted. "We're very hopeful that we will be able to resolve these differences and come to an agreement to avoid a strike. That's the absolute last resort that we want to have happen."

Ninety-two percent of voting members of the union agreed last week to authorize a strike if more substantial progress is not made. The district has had difficulties even attracting substitute teachers for the school year. According to the education site niche.com, Macon County's teacher-to-student ratio is 14-1.

Pekovitch praised the support of parents and argued teachers are shouldering more than what their job description requires, which is taking a toll. He acknowledged teaching has changed from pre-pandemic days causing classrooms to struggle to meet students' needs. The union wants teachers to stay in the district and not seek higher salaries elsewhere.

"Our biggest thing has been just teacher retention," Pekovitch explained. "There's a problem with our pay when you're looking at teachers that have longevity in the district. Once you've been here longer, if you have higher education, there's just some gaps in there that we're trying to close to keep our more experienced teachers here."

Niche.com indicates the average teacher salary in the district is around $56,000. Pekovitch added the mindset that nice schools and newer technology alone would attract people to want to be in Macon "is just not the case anymore." The Meridian Community Unit School District serves a little more than 900 students in grades pre-K through 12.


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