Phoenix Votes to Keep 'Spiking' Police Pensions
The Phoenix Police Pension Board voted 4-1 Wednesday to let stand three controversial policies that allow public-safety officers to "spike" their retirement benefits at an additional cost to taxpayers.
The vote allows police officers to count uniform allowances as compensation and lets them cash in unused sick and vacation leave at the end of their careers to increase their salaries.
Those practices artificially inflate an employee's ending pay, which is a key factor in determining pension benefits. When ending pay is spiked, annual pension benefits are higher.
The policies have allowed a handful of high-ranking Phoenix public-safety retirees to become millionaires because they have significantly enhanced their annual and lump-sum retirement benefits under a program known as the Deferred Retirement Option Plan, or DROP.
The board was forced to rule on the policies because it is a defendant in a lawsuit in which three Phoenix residents allege the pension-spiking practices are illegal. The board's decision is expected to keep in place similar policies for firefighters, who also are allowed to spike their pensions.
Join the Discussion
After you comment, click Post. You can enter an anonymous Display Name or connect to a social profile.
LATEST MANAGEMENT & LABOR HEADLINES
Another Atlantic City Casino Closes2 minutes ago
State to Start Charging People to View Public Documents Online4 hours ago
Income Inequality Climbing in Many Large Cities1 day ago
California to Triple Movie and TV Show Tax Credits4 days ago
How the Recession Beefed Up Sister City Relationships5 days ago
Cities to Compete for $45 Million Innovation Grants5 days ago