Detroit's police and fire pension board is suing over an allegedly back-door move by the fund's investment committee that resulted in a 70 percent pay raise for a contractor.
The pension board rejected raising contractor Kevin Kenneally's salary from $167,000 to $224,000 last year, according to the Free Press. But the chairman of the fund's investment committee allegedly went around it, and found a way to give Kenneally even more:
... [Bob Smith] pushed a plan to circumvent the board's rejection by having Kenneally quit and immediately get hired doing similar work as an independent contractor making $285,000 a year, according to the lawsuit. The new contract also included a one-time incentive payment of $60,000.
The investment committee was created during the city's exit from bankruptcy. According to the Freep, the investment committee for the city's other pension fund — the General Retirement System — did not support the move to increase Kenneally's pay.
