Politics

Another Breakthrough: Agreement Reached for Civilian Retiree Cuts

April 15, 2014, 10:11 PM


Featured_bankruptcy1_9075

The retiree pensions -- a big part of the bankruptcy puzzle -- seemed to be falling into place on Tuesday.

First, earlier in the day, the Retired Detroit Police and Fire Fighters Association board unanimously approved the proposal from the city that calls for no cuts in pensions for retired cops and firefighters. The agreement does call for  smaller annual cost-of-living increase.

Then later in the day, negotiators for Detroit pension boards representing civilian city retirees agreed to  benefit cuts that were dramatically lower than initially proposed, the Detroit Free Press reported.

The Freep wrote that the agreement marked 'a watershed moment that could help resolve Detroit’s historic Chapter 9 bankruptcy and position the city to start reinvesting in services, sources familiar with the deal said."

The Freep noted:

With the city’s two pension funds, two global banks and major bondholders on board with Detroit emergency manager Kevyn Orr’s plan, Detroit’s massive financial restructuring could now move quickly through court if Judge Steven Rhodes agrees that the roadmap is legal and feasible.


Read more:  Detroit Free Press


Leave a Comment:

Photo Of The Day