Two Detroit pension funds have filed a suit against the city’s emergency manager and the governor of Michigan to try to prevent Detroit from filing for bankruptcy.
In the suit, the General Retirement System and the Police and Fire Retirement System challenge the authority of emergency manager Kevin Orr and Governor Rick Snyder to authorize bankruptcy proceedings that would “in any way impair the accrued financial benefits of the retirement systems’ plan participants and beneficiaries.”
They claim that the participants’ pension benefits are protected by the Michigan Constitution.
The funds say they remain fully committed to working co-operatively with the emergency manager in his efforts to address the financial condition of the city and have fully co-operated with the emergency manager and his team of professionals to date.
News reports say Detroit is expected to file for bankruptcy later this week.