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Detroit Bankruptcy: City Strikes 2nd Deal With Its Other Retirees

Apr 16, 2014

The Detroit pension fund that covers all retirees except former police officers and firefighters says it has reached a tentative agreement with the bankrupt city. 

City of Detroit
Credit Wikipedia
Tina Bassett, a spokeswoman for the city's general pension fund, says retirees would see a 4.5 percent cut and their cost-of-living payments would be eliminated under a deal reached late Tuesday.

Hours earlier, a group representing retired police and firefighters announced that it had reached its own deal to preserve pension benefits but trim cost-of-living payments.

Together, the agreements would cover all of Detroit's retired public workers. They would still need the approval of the more than 20,000 retirees and the thousands of active workers who qualify for a future pension.

The bankruptcy judge would also have to approve.