American Federation v. City of Phoenix

Summary

The court affirmed summary judgment for the City, holding that one-time payments for unused accrued vacation leave made upon retirement or separation are not pensionable compensation under the City's retirement plan. The plan's reference to salary or wages means fixed amounts paid annually at regular, periodic intervals for personal services, and the City's prior administrative practice could not create contractual rights contrary to the plan. The court also vacated the court of appeals' reasoning and replaced it with its own.