Staff
Detroit’s bankruptcy plan has proposed slashing retirees’ pensions by as much as 34%.
General city retirees could see their pensions reduced by up to 34% ,while police and fire retirees’ pensions may be cut by 10%.
The city says if police and fire retirees and general city retirees agree to the plan and a proposed settlement with the state, they would likely receive in excess of 90% and 70%, respectively, of their earned pensions after elimination of cost-of-living allowances.
Detroit’s current employees would continue to earn pensions payable in the future under traditional DB formulas rather than DC arrangements.
Related articles: