Management & Labor

Arizona to Rescind Illegal Pay Raises

July 11, 2014

The Public Safety Personnel Retirement System on Wednesday halted illegal pay raises of up to 27 percent that were improperly authorized late last year for five investment-staff employees and were uncovered by The Arizona Republic.

"As of today, we will immediately stop any future payments of the improperly implemented salary adjustments to all five investment staff employees," PSPRS Chairman Brian Tobin wrote in a letter Wednesday to a state official who further acknowledged the payments violated state law.

Trust administrator Jim Hacking acknowledged Tuesday that PSPRS gave the pay raises without the approval of the state Department of Administration, as required by law. Trust officials refused to say who authorized the pay increases, but Hacking has final authority in all personnel decisions.

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