No pension cuts for retired Detroit police, firefighters in bankruptcy deal From The Detroit News:
Source: Detroit News
Sterling Heights — Retired Detroit police and firefighters would get no cut in their pension and a smaller annual cost-of-living increase under a new deal their retiree association approved Tuesday.
The Retired Detroit Police and Fire Fighters Association’s board voted unanimously Tuesday to support the city’s latest offer to settle their claim in the bankruptcy, association president Donald Taylor said.
Retirees would be expected to approve the so-called “grand bargain” of $816 million pledged toward their pensions by 12 private foundations, the state of Michigan and donors of the Detroit Institute of Arts. In exchange for the money, the DIA’s assets would be shielded from a fire sale to satisfy creditors.
The proposed deal is the third reached in recent days as Detroit and creditors continue intense negotiations that could bring a quick end to the biggest municipal bankruptcy in U.S. history. An even bigger deal could be announced as early as today with the Detroit Police & Fire pension fund.
Taylor said the new deal would give retired police and firefighters a 1 percent cost-of-living allowance. The city had proposed eliminating the compounding annual 2.25 percent increases altogether and deeper cuts to monthly pension checks if retirees refused to settle.
“Nobody is happy. Obviously, everyone deserved all of their benefits,” Taylor told reporters Tuesday after the vote. “But sooner or later reality sinks in. The city’s in bankruptcy so you have to do the best you can for the majority of your members.”
From The Detroit News: http://www.detroitnews.com/article/20140415/METRO01/304150080#ixzz2yyplBAOz
Read more: http://www.detroitnews.com/article/20140415/METRO01/304150080?fb_action_ids=1502691929960257&fb_action_types=og.comments
The Pensions were negotiated over Union Contractual Agreements with the City of Detroit. An "Emergency Manager" appointed in a dictatorship way, should not per the Constitution of the State of Michigan have any rights to impair or reduce a contract -- i.e. the negotiated SETTLEMENT the City of Detroit and its' Unions agreed upon. Not even in a so-called bankruptcy.
Meanwhile, back to reality, this deal sets legal precedent. The General Fund Retirees need to BUCK A CUT to their monthly pension guarantee, agree to reduce the COLA to 1.00% as in the case of Firefighters and Police for the City of Detroit, along with receive a guaranteed VEBA allowance to pay for Health, Dental and Vision care.
What this deal means is that not only Detroit's Firefighters and Police Officers pension guarantee is safe in a bankruptcy --- but all other municipal employees across the state -- in our humble opinion -- INCLUDING State of Michigan Employees. What Snyder tried and FAILED to do is eliminate a promised negotiated benefit from retirees who honored their end of the agreement to work 25, 30, 35, 40 years or more --- for return of income in elder years. Orr and Snyder FAILED. The People (at this point Police and Firefighters for the City of Detroit) WON!
This is what happens when folks LIE in a pearl effort to "achieve" victory. They fall flat on their face. The numbers don't lie and Orr and Snyder tried and FAILED to make them lie.
Onward to the General Retirees and they too should receive the SAME DEAL and NOTHING ELSE.
Independent Underground News & Talk
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And all trade with this country would mean nothing if the judiciary didn't stand behind contractual law.
When management makes an offer to labor over the long term, it had damned well better live up to its contractual obligations. Private sector used to laugh at public employees as "suckers" until retirement age, then all of a sudden, seeing their private sector 401k's dry up, they get 'pension envy' and say that public employees are leeches. Now the bullshit chickens have legally come home to roost...but I do go on...