Retired firefighters and police officers in Detroit have reached a deal that would mostly protect their pensions in the face of pressure to accept massive cuts. The workers are among some 30,000 retired and active public employees who have faced threats to their retirement benefits following the bankruptcy filing by Detroit’s emergency manager last year. Under the new agreement, members of the Retired Detroit Police and Fire Fighters Association will keep their pension benefits. But cost-of-living increases will be cut in half. The deal is the first between Detroit and a group of public workers since the bankruptcy process began. It is contingent on more than $800 million in outside funding from charities, the Detroit Institute of Arts, and the state of Michigan. The Obama administration is also reportedly in talks to add $100 million in federal aid.
Detroit Pensioners Reach 1st Post-Bankruptcy Deal
HeadlineApr 16, 2014