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April 16, 2014

Detroit Pensioners Reach 1st Post-Bankruptcy Deal 
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Retired firefighters and police officers in Detroit have reached a deal
that would mostly protect their pensions in the face of pressure to
accept massive cuts. The workers are among some 30,000 retired and
active public employees who have faced threats to their retirement
benefits following the bankruptcy filing by Detroit's emergency manager
last year. Under the new agreement, members of the Retired Detroit
Police and Fire Fighters Association will keep their pension benefits.
But cost-of-living increases will be cut in half. The deal is the first
between Detroit and a group of public workers since the bankruptcy
process began. It is contingent on more than $800 million in outside
funding from charities, the Detroit Institute of Arts, and the state of
Michigan. The Obama administration is also reportedly in talks to add
$100 million in federal aid.

 

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