Low-income retirees living in Detroit can apply for aid to offset some of the pension cuts brought on by the city’s bankruptcy this year.
The program is a one-time offer – and the deadline is December 31.
Details from Detroit News:
To be considered, a pensioner must be 60 or older and have an income that is at 140 percent of the 2013 federal poverty level.
The requirements vary based on the number of dependents, but range from no more than an annual income of $16,338 for a single person to $22,022 for a household of two, and $33,390 for a household of four.
The Income Stabilization Fund Program was created as part of the bankruptcy resolution and seeks to prevent eligible retirees from falling below the poverty line as a result of the impending pension cuts. The program allocates $20 million over 14 years for eligible retirees from either of the city’s two pension funds.
The forms must completed, signed and postmarked — or emailed — by the close of business Wednesday, officials say.
More background on the program:
The Income Stabilization Fund Program was created as part of the bankruptcy resolution and seeks to prevent eligible retirees from falling below the poverty line as a result of the impending pension cuts. The program allocates $20 million over 14 years for eligible retirees from either of the city’s two pension funds.
[…]
The stabilization program is expected to start March 1, when changes are implemented in benefit payments, pension officials have said.
State treasury officials are overseeing the application process and say it’s difficult to estimate how many retirees will qualify, since it will be determined on a case-by-case basis depending on adjusted gross income and dependents.
But an initial expectation was that it could involve 6,000 to 8,000, said treasury spokesman Terry Stanton.
The department does not have a specific number of how many have applied as of Monday, he added.
As part of Detroit’s bankruptcy, general pensioners accepted 4.5 percent cuts to pension benefits, as well as the suspension of COLAs.
The city’s public safety workers will not have their benefits cut directly, but will see reduced COLAs (from 2.25 percent to 1 percent annually).
Photo by Mike Boening Photography via Flickr CC License
