Pension Crisis

Phoenix Sued To Block Public Officials from "Pension Spiking"

The Goldwater Institute intervenes to block the expensive practice

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The Goldwater Institute, a locally-based taxpayer watchdog group, filed a lawsuit Thursday against the city of Phoenix to stop pension spiking for public safety officers.

The practice allows police officers and firefighters to increase the amount of their pensions by cashing in unused sick leave, vacation and other benefits at the end of their careers.

The suit comes after The Arizona Republic in May reported on the city's policy, which has allowed a handful of public safety retirees to become millionaires, and 10 to significantly increase their lump-sum retirement benefits to more than $700,000 each.