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
Will Raising the Minimum Wage Raise Rents Too?9 hours ago
How Does a City Get to Zero Carbon Emissions?9 hours ago
A Cat Library, Just for Government Employees9 hours ago
In Post-Detroit Bankruptcy Era, California Protects Investors Before Pensioners1 day ago
Illinois Governor and Largest State Employee Union Agree to Contract Extension1 day ago
Right-to-Work Applies to State Employees, Rules Michigan Court1 day ago