Retiring Phoenix city manager able to spike his city pension

  • Source: Arizona Republic (Phoenix) & AZCentral.com
  • Published: 09/04/2013 12:08 AM

Phoenix City Manager David Cavazos can boost his pension when he retires next month by cashing in City Council-approved perks and roughly $200,000 of unused sick leave, a practice known as “pension spiking” that he was asked to end just six weeks ago, records obtained by The Arizona Republic and 12 News show. Cavazos and city officials, under his directive, refuse to disclose the total value of his pension package, citing a sealed divorce agreement with his ex-wife, Julie Ann, who will receive part of his pension benefits. A city spokeswoman said Tuesday that that amount will be disclosed when Cavazos retires Oct. 16. ...Pension spiking is a contributor to the city’s rapidly escalating pension costs, which have been influenced by poor investment returns during the recession and during the dot-com bust in the early 2000s. The city expects to contribute $127 million to its pension plan this fiscal year on behalf of municipal workers and an additional $129 million to the statewide Public Safety Personnel Retirement System for its police officers and firefighters. The escalating costs and spiking by top police and fire administrators were such that Stanton and two City Council members in late July asked Cavazos to end the policy that allows pension spiking.



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