A federal judge has approved Detroit’s bid to qualify for bankruptcy, putting the city on a path to financial recovery, but threatening the livelihoods of thousands of city workers. In a landmark decision that could harm retiree benefits nationwide, Federal Judge Steven Rhodes ruled that federal bankruptcy law can override state laws that protect public pensions. That clears the way for Detroit to make major cuts to the health and retirement benefits of city employees.
Clearing Detroit Bankruptcy, Judge OKs Cuts to Retiree Pensions
HeadlineDec 04, 2013