Phoenix anti-pension spiking laws to save city $233M - FOX5 Vegas - KVVU

Phoenix anti-pension spiking laws to save city $233M

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PHOENIX (CBS5) -

The city of Phoenix says efforts to curb the controversial practice of so-called pension spiking will save them a lot of money.

A recent study done by an outside firm found the city will save $233 million over the next 25 years.

The Segal Company, a New York City-based private actuarial and consulting firm, provided the city of Phoenix with its final analysis late last week.

Pension spiking is when city workers roll over unused sick and vacation time and then cash it out close to retirement so they bump up their salary and increase their pension payout.

In October, the City Council approved a measure that stops city workers from padding their pensions while still employed.

"Through a careful process, we did the right thing to end pension spiking in Phoenix," said Councilwoman Thelda Williams, a member of the ad hoc subcommittee. "The $233 million savings taxpayers will see from that effort demonstrate our commitment to building a sustainable compensation system that works for everyone."

Mayor Greg Stanton's office said Phoenix's anti-pension spiking laws are among the toughest in the nation.

The laws eliminate counting future sick and vacation leave compensation toward a pension, end the use of allowances for pension calculation and end the practice of unlimited sick leave.

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