Today Details Involving Detroit’s Bankruptcy Plan Released
Today Detroit Emergency Manager Kevyn Orr detailed a proposal that would restructure Detroit's debt. A part of the plan calls for proposed cuts to retiree pensions. This would effect quite a few and as a result has been getting a lot of attention. Under this proposal general retirees would get 70% of their pensions. Those retired from the Detroit Police and Fire Departments would receive more than 90% of their pensions.
However, for this to happen a funding plan would have to be approved by the state legislature. In addition adequate financial aid would have to be provided by foundations and others who have made commitments to help. U.S. Bankruptcy Judge Steven Rhodes is looking the proposal over now and will determine what happens next.
The objective: cut the city's long term debt obligations by about $18 billion.