Detroit Pensioners Can Expect To See Benefits Cut By March 1st

downtown detroit

As part of Detroit’s bankruptcy proceedings, the city’s pensioners agreed to stomach some benefit cuts in order to ward off potentially steeper cuts.

General retirees will be hit with 4.5 percent cuts; meanwhile, public safety workers will see reduced COLAs.

The attorney representing Detroit’s retirement systems said the cuts will likely be levied by March 1.

Details from the Associated Press:

Detroit’s main pension fund plans to hold public meetings in early December to discuss upcoming cuts and an opportunity for retirees to apply for financial help.

Attorney Ron King says 4.5 percent cuts for 12,000 retirees likely will kick in by March 1 as a key part of Detroit’s bankruptcy. The pension fund also is recouping nearly $200 million from what the city says was excessive interest paid to annuity accounts.

Retirees at risk for falling into poverty can apply for money from a separate fund. Applications are being mailed and must be returned by Dec. 31.

The disclosures were made in court Monday.

Police and fire retirees in a separate pension fund fared better. Their annual cost-of-living payment will be reduced but their pension will not be cut.


Photo Credit: Ian Freimuth via Flickr Creative Commons License

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