By Beth Duckett
The Arizona Republic
Scottsdale is on the verge of settling a court battle with the Arizona State Retirement System over a $2.9 million bill related to the city’s early-retirement program from 2009.
Under a proposed settlement, Scottsdale will pay a reduced amount of $1.5 million, said David Cannella, a retirement-system spokesman.
The compromise avoids a “protracted complicated trial in which the outcome would be uncertain,” Cannella said by e-mail.
Scottsdale had disputed the bill related to the cost of a controversial early-retirement program the city enacted nearly four years ago to save money and counteract the effects of the recession.
The city allowed 100 employees to retire early, giving them one week of pay for every year of service.
The payroll savings was estimated at around $13 million a year, including layoffs, until workers were replaced or salaries increased, according to a city audit.
