Detroit's bankruptcy and how it's going to deal with retirees' pensions worries me.

[raccoon]

I am planning to retire from the state in the not-too-distant future.

It worries me that this is a slippery slope. If Detroit weasels out of paying its pensioners--and it looks like they will--
other government bodies will follow suit. I'd be amazed if they didn't.

Your thoughts?

[a kennedy]

1. Slippery slope indeed.....Illinois is next too.

D*mn. Detroit is just the beginning.

[badtoworse]

2. You should be worried. Detroit's situation, while extreme, is not unique.

The issue is not "trying to weasle out of paying its pensioners". Detroit just doesn't have any money. They owe about $15 billion to various creditors with bondholders holding the largest amount of debt. Pensioners are also considered creditors and will have a place in line in the bankruptcy proceeding. Every creditor will get a haircut (i.e. less money than they were expecting). As unsecured creditors, pensioners will stand behind secured creditors such as bondholders and unfortunately, they are likely to be hit pretty hard. The numbers I've heard are in the 15 to 20 cents on the dollar range.

[yeoman6987]

3. Detroit

It saddens me that this is happening, but when they wanted to sell some art pieces, there was an uproar on just that. So I don't know what people want Detroit to do if they aren't willing to "lose" something. Sad for the people who have retired already. I think they should have some sort of rule that you can't reduce a current retiree. Detroit needs to find another way. Now as far as future retirees, they are fair game. Reduce theirs enough to cover the "problems" of Detroit. I say this as a future retiree by the way. Not Detroit but certainly a city that could easily have these issues someday. Also beginning tomorrow, have all public workers have a 401K or TSP account and due away with all pensions on future employment. They are too expensive and pretty much are obsolete anyway. I can't think of one private company who has a pension anymore because of the costs.

[raccoon]

4. I think they should have some sort of rule that they can't reduce anyone they've made all these

promises to.

But I know how that goes in the Empire these days---only ones who can't be reduced in any way, shape, or form are the vultures.
For the rank and file--Bohica.

[Gidney N Cloyd]

5. These pension threads sure bring out the trolls...

[yeoman6987]

6. Trolls

Is that all you can say on my incredible post. Look I don't live in Detroit. Some people on another thread are saying bulldoze the place down. I think we can do better than that. Of course some seem to think joking around on computer and not taking good suggestions seriously is going to help Detroit. We will see if your posts help Detroit.

[GeorgeGist]

7. Fair game.

Incredible.