The Letter That Prompted The Fourth Investigation Of AZ PSPRS

Pensioners First-

  • Phoenix City Councilman Sal DiCiccio requests that the Arizona Attorney General’s Office investigate and prosecute illegal activities at the Arizona Public Safety Personnel Retirement System.
  • According to the Arizona Republic, the Attorney General’s Office was conflicted and unable to conduct the requested investigation.
  • According to the Arizona Republic, the Arizona Auditor General will again be investigating allegations of serious irregularities and potential illegal activity by PSPRS management.

Arizona Republic – August 12, 2014:

Phoenix City Councilman Sal DiCiccio, an outspoken critic of pension system abuses, said the PSPRS board has “no accountability to taxpayers or the beneficiaries of the pension plan” in awarding bonuses to Parham during a FBI investigation.

“This is insane. They have the worst financial record of any of the (state) funds, and they are giving him a bonus?” DiCiccio said.

The councilman also has formally asked the Attorney General’s Office to investigate the illegal raises Hacking gave to the investment staff. DiCiccio also wants the raises, which were stopped last month, repaid.

Stephanie Grisham, a spokeswoman for Horne, said Monday that DiCiccio’s complaint has been forwarded to the Auditor General to investigate.

Councilman Sal DiCiccio’s letter to the Arizona Attorney General:

http://www.arizonadailyindependent.com/wp-content/uploads/2014/07/DiCiccio-letter-to-Horne.pdf

Sal DiCiccio
Councilman
District 6
(602) 262-7491
Fax: (602) 534-3574
TTY: (602) 495-5810
council.district.6@phoenix.gov

Department of Law
1275 West Washington Street
Phoenix, Arizona 85007
July 10, 2014

Dear Attorney General Tom Horne:

Yesterday, the Arizona Republic reported in a column by Craig Harris, titled Pension trust ends illegal
raises uncovered by The Republic, that the Public Safety Personnel Retirement System (PSPRS) illegally granted pay raises of up to 27% to five investment staff employees without the approval of the state Department of Administration, as required by law. That a body entrusted with a fiduciary duty to our state’s retirees has engaged in an apparent violation of the law is extremely troubling, and I urge your office to investigate the matter thoroughly. In particular, the person or persons who authorized the raises should be identified and appropriate disciplinary and legal actions be taken.

Such mishandling of state funds is unacceptable at any time, but it is particularly offensive during this
period in which the state and cities are finding it difficult to provide fundamental government services like police protection due to budget shortfalls. The fact that our capitol building has been sold to an outside party due to Arizona’s financial straits is testament to the gravity of our situation. Every taxpayer dollar matters, and while I am pleased to learn that the illegal raises have been halted, this measure is not nearly enough. On behalf of the taxpaying citizens of Arizona, we must insist on recovering the improperly granted money without delay. In this letter I am requesting that:

  1. Your office take measures to immediately return those taxpayer dollars that were illegally granted as pay raises.
  2. Your office takes steps to identify the person or persons responsible for granting these pay raises. And, to determine if those individuals knowingly granted those pay raises contrary to state law.
  3. Your office takes the necessary steps to prosecute those individuals if they took this action knowing full well it was illegal.

Confidence in public officials to do their duty honestly and to safeguard the interests of the people is
fundamental to our system of government. The PSPRS violated that trust, but swift action by your office to recover those funds will help to restore a measure of the trust that was lost.

Respectfully,
Councilman Sal DiCiccio

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