The state human resources office on Monday recommended that the Public Safety Personnel Retirement System fire its embattled administrator after he admitted to investigators that he repeatedly sexually harassed an employee and didn't properly respond to allegations he spied on staffers he didn't like.

The PSPRS board will decide Tuesday morning whether to take action against Jared Smout at a special meeting. Smout was placed on paid leave in April in response to a staff complaint of unfair treatment.

The Arizona Department of Administration provided The Arizona Republic under the state's Public Records Law with a redacted copy of its dismissal recommendation as well as complaints made against the agency.

Smout could not be reached Monday. Christian Palmer, a PSPRS spokesman, declined to comment on behalf of the agency.

The four-page letter from ADOA to PSPRS Chairman William T. Buividas, a Phoenix police officer, states that:

Smout, who is paid $252,200 a year, confirmed he was attracted to a subordinate and sent the employee inappropriate text messages and often hugged the employee.

He admitted he inappropriately looked at another subordinate on "multiple" occasions and attempted to explain his behavior by "remarking he 'was a man.'"

After staff alleged Smout had information technology staff spy on workers he didn't like, he met with those employees. Smout, however, did not retain a computer forensic expert to conduct an investigation in a timely manner.

He admitted he watched an employee for months on PSPRS video cameras. The summary indicated that Smout spent time "viewing live video sometimes for hours every day" of a PSPRS employee

The PSPRS board, under then-Chairman Brian Tobin, promoted Smout to interim administrator in July 2014, following the forced resignation of Jim Hacking, who gave staff secret raises. The interim tag was removed the following year.

Brian Tobin, a Phoenix firefighter, is the brother of current ADOA director Andy Tobin. Brian Tobin late Monday said he had no knowledge of any type of investigation of Smout.

"Mr. Smout clearly engaged in improper and inappropriate behavior and failed to meet the expectations and requirements of his job as administrator of PSPRS," the July 15 letter from ADOA Deputy Director Elizabeth Thorson states. "The conduct to which Mr. Smout has himself admitted does not even remotely comply with the values of PSPRS and has brought embarrassment and discredit to the state."

Under Smout, The Pew Charitable Trusts, a Philadelphia-based nonprofit that has extensively researched public pensions, concluded PSPRS was one of the worst-performing pension systems in the country.

PSPRS' investments have performed so poorly that many Arizona cities and government entities the past several years have had to increase taxpayer-funded contributions to pay for the retirement benefits of PSPRS members.

The investigation into Smout was triggered by a complaint earlier this year to ADOA that alleged a frat house environment and sloppy oversight of sensitive records at PSPRS.

In a February complaint, a PSPRS employee also alleged:

Smout prevented several PSPRS employees from filing formal complaints to the state.

After the PSPRS board approved a Chief Technology Director position, Smout hired John Briney. Additional records obtained by The Republic show Briney had been fired for creating a hostile work environment at the Department of Gaming.

Briney and another high-level employee fired steel-ball slingshots at wildlife from the back porch of the PSPRS office. This allegation was not confirmed.

Palmer, the communications director, in 2017 accidentally leaked nearly 20,000 names and Social Security numbers to an undisclosed Arizona newspaper. After PSPRS management was notified of the incident, officials did not follow the agency's breach protocol. Palmer told The Republic he could not comment on the allegation.

Email says:

The underfunded pension fund for first responders, judges, elected officials and correctional officers also got in hot water with the Department of Administration in April, when PSPRS was warned to not give raises to staff.

The PSPRS board ignored the warning and gave $39,500 raise to the fund's interim director, Bret Parke.

ADOA had issued that warning in response to a separate, $43,147 retroactive raise that PSPRS awarded Administrator Jared Smout at the end of 2018.

In May, the PSPRS board unanimously approved retroactive bonuses totaling more than $120,000 to three executives, including one who has retired, and another $51,481 payout to the estate of a dead ex-employee.

The 6-0 vote came after The Republic reported that Smout had granted, without board approval, bonuses to three investment staffers who claimed they were owed money from 2013. The additional payout went to the estate of the dead executive who also worked on investments.

Smout started working at PSPRS in 1992 and has managed or held positions in every department within the organization, according to his biography on the PSPRS website. He is a certified public accountant who has degrees from Arizona State University and Brigham Young University.

Have a tip on investigative stories? Reach the reporter at craig.harris@arizonarepublic.com or 602-444-8478 or on Twitter @charrisazrep.

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