City council votes to end pension spiking

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by 3TV

Video report by Dennis Welch

Posted on October 31, 2013 at 6:58 PM

Updated Thursday, Oct 31 at 7:01 PM

PHOENIX -- The Phoenix City Council has narrowly passed a measure that hopes to end a practice that some say is costing the city millions of dollars every year.

On Thursday, the city council voted to end a practice known as “pension spiking.”

Beginning next year, city employees will not be able to use unused sick and vacation days and allowances for cell phones and cars to pad their retirement.

While some were happy with Thursday’s vote, others felt it didn’t go far enough.

Phoenix Mayor Greg Stanton was among those happy with Thursday’s results.

“We needed to end pension spiking here today because it is the wrong policy for the city of Phoenix,” said Stanton.

Councilman Sal DiCiccio said he voted against the proposal because he doesn’t think it will fix the problem.

“The proposal that moved forward today gamed the entire system,” DiCiccio explained. “It keeps the spiking in place, talking about a cell phone and car allowance is so incredibly small.”

DiCiccio’s main concern was that the cuts made today will return when contracts are renegotiated.

On Thursday evening, Mayor Stanton issued a release stating that the changes will save taxpayers around $5 million per year.
 

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