Detroit retirees back pension cuts by a landslide

[Omaha Steve]

Source: AP-Excite

DETROIT (AP) — A year after filing for bankruptcy, Detroit is building momentum to get out, especially after workers and retirees voted in favor of major pension changes just a few weeks before a judge holds a crucial trial that could end the largest public filing in U.S. history.

Pension cuts were approved in a landslide, according to results filed shortly before midnight Monday. The tally from 60 days of voting gives the city a boost as Judge Steven Rhodes determines whether Detroit's overall strategy to eliminate or reduce $18 billion in long-term debt is fair and feasible to all creditors.

Trial starts Aug. 14.

"I want to thank city retirees and active employees who voted for casting aside the rhetoric and making an informed, positive decision about their future and the future of the city," said Kevyn Orr, the state-appointed emergency manager who has been handling Detroit's finances since March 2013.

FULL story at link.



FILE - In a Thursday, July 3, 2014 file photo, Detroit retirees Mike Shane, left, and William Davis protest near the federal courthouse in Detroit. Workers and retirees approved pension cuts in Detroit's bankruptcy by a landslide, the city reported Monday, a crucial step to emerging from the largest municipal insolvency in U.S. history. The city disclosed results from two months of balloting, which ended July 11. Judge Steven Rhodes still must hold a trial in August to determine if Detroit's overall bankruptcy plan is fair and feasible to all creditors, from Wall Street to Main Street, but support from retirees is vital. (AP Photo/Paul Sancya, File)


Read more: http://apnews.excite.com/article/20140722/us-detroit-bankruptcy-73dd96df92.html

[yeoman6987]

1. Wow!

Surprised that they would vote to lower their mentions especially for current retirees. I guess they thought it was better to have a smaller cut then a possible disastrous cut.

[bigdarryl]

4. From what I heard the vote was a FRAUD and the pentioners never saw the

Actual vote count the counting was done by the Emergency Manager and his cronies

[Omaha Steve]

7. WOW!

I would challenge that.

[bigdarryl]

9. There trying to

[valerief]

10. Well, isn't Detroit a dictatorship now anyway? nt

[hollysmom]

2. the city s being sold below cost tothe rich, and these suckers

worked for the pensions, gave up other benefits for these pensions and just gave them up? were they sold dwon the river or just plain dumb?

[newfie11]

3. +1

[IronGate]

5. Or maybe they're better informed than you are. nt.

[hollysmom]

13. Or maybe I am better informed than they are. n/t heh

[L0oniX]

6. Sorry ...I can't believe this.

[BumRushDaShow]

8. Some more info on this

The result, turnaround experts said, provides a complicated model for the future of troubled, underfunded public-sector pension systems in other places. On one hand, the federal judge in Detroit’s case has ruled that pensions may be cut in municipal bankruptcies, and a majority of the city’s pension-holders have now agreed to go along with such cuts rather than challenge them in court. On the other hand, the city’s plan avoids deeper cuts to pensions, which had been threatened months ago, while some of the city’s financial creditors say they are being asked to accept far worse returns.

Under the city’s plan, general municipal retirees could expect 4.5 percent cuts to their pension payments, as well as an end to cost-of-living raises. Retired firefighters and police officers would see no cuts in their monthly pensions checks, but could expect smaller than expected cost-of-living raises.

Among retired and active firefighters and police who chose to cast votes, 82 percent voted in favor of the plan, officials said late Monday. And among general workers and retirees, 73 percent voted in favor. About 15,600 workers and retirees opted to vote from among about 32,000 who could have.

http://www.nytimes.com/2014/07/22/us/detroits-retirees-vote-to-lower-pensions-in-support-of-bankruptcy-plan.html?_r=0

Basically a 50% voting participation. I can imagine the frying pan or fire choice.

Used to be that since private industry refused to hire minorities, the public sector was the only ticket in town. Now they plan to finish us off for good. The one solace is that very little is "permanent" (other than death), so perhaps one day in the future, this can be remedied (via repeal of the terms once the fiscal issues are resolved and COLAs can be restored). Such wouldn't help in the immediate term, but perhaps for later retirees.

[dixiegrrrrl]

11. "an end to cost-of-living raises."

THIS is what is going to screw people.
Food prices alone have increased 50% since 2005 when I make out our retirement budget.

The truth is, pensions never were realistic in the long run. That money we paid into them over the years was spent by the Gov( city-state-National)
and invested pension funds got screwed by every market downturn PLUS the mortgage bonds most of them invested in, which have been proven to be fraudulent.
No co-incidence that as us boomers hit retirement age, suddenly there are calls for ending pension systems and Soc. Sec.
( Soc. Sec. cost of living adjustments have all but disappeared since 2008)

[hollysmom]

14. Yes, much like the Republicans would like to use social security money now.

I remember when Christie Whitman actually took money out of the pension funds claiming they were over funded during the bull market. Of course no one ever put money back in it. The problem is it makes it easy for politicians to look like heroes by not taxing people and spending all this money, but when the deadlines come - nothing there..

All future funding should have requirements that are met. No excuses. Right now, we have christie who negotiated a drop to pensions in exchange for fully funding them and look - now he doesn't have the money to fund them. not that he will renege on his tax cuts for the over 1/2 million a year income. Never Never trust a politician to do anything in the future!!! can't stress this enough, makes me thing union heads are on the take now.

[freshwest]

15. And once again, those who voted rule the roost. That's a lesson there. I'm wondering if the cost of

living in Detroit has gone down to make this more palatable?

I've been told the price of housing and other things is lower than many cities.

The water cut offs there show poverty is at a record level.

BTW, good comment.

[blkmusclmachine]

12. Who, uh, "counted," those votes?!?!