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Detroit, retirees agree to deal over benefits

  • Detroit has filed the latest version of its debt-reduction proposal after it forged a deal with representatives of tens of thousands of retired city workers.
  • Detroit has agreed to ease healthcare and pension cuts, although retirees will still only receive 10-13% of what they would have originally been given for healthcare.
  • The deal "puts the city that much closer to emerging from bankruptcy solvent, more credit worthy and better able to provide basic services to its nearly 700,000 residents," said Emergency Manager Kevin Orr.
  • The agreement adds to those that Detroit has formulated with several banks, bond insurers and other retiree groups, boosting the chances of the city receiving approval from its creditors for its restructuring plan. However, some bond insurers and unions still haven't come to an agreement with Detroit.
  • A vote on the debt restructure could start next month.
  • More on Detroit
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Comments (6)
  • Patent News
    , contributor
    Comments (1424) | Send Message
     
    as usual, retirees that paid in full will be scammed.

     

    government officials should be up on charges for inflating and hyping numbers.
    27 Apr 2014, 07:10 AM Reply Like
  • Hubert Biagi
    , contributor
    Comments (713) | Send Message
     
    "Detroit offered its employees a generous pension plan with zero contributions, then sweetened the deal with bonus payments. When the pension became underfunded, at least in part due to those bonus payments, the city borrowed money to fund the plan. The holders of those pension obligation bonds will now lose most of what they are owed."

     

    "Detroit has two pension systems: the General Retirement System (GRS) and the Police and Fire Retirement System (PFRS). In addition, some employees participate in the Annuity Savings Fund, a defined contribution plan. Members of Detroit GRS and PFRS do not contribute to their defined benefit pension – a very unusual arrangement in the public sector. "

     

    "The annuity savings program within the Detroit General Retirement System created a class of privileged retirees in a city where pensions average about $19,000 a year, according to municipal records. The accounts got $756.2 million from the pension fund during 1985 through 2007 as extra interest, atop a guaranteed 7.9 percent backed by public money."

     

    So it would seem that Detroit public workers got a sweet deal for decades. Now they have run out of other people's money.
    27 Apr 2014, 10:27 AM Reply Like
  • HiSpeed
    , contributor
    Comments (1189) | Send Message
     
    Politicians, especially DEMs, lied when they bribed voters for votes with the voters own money.

     

    Will the voters learn, and make smarter choices in the future? History suggests not.
    27 Apr 2014, 12:43 PM Reply Like
  • samuraitrader
    , contributor
    Comments (876) | Send Message
     
    Coming to a city and state near you.
    27 Apr 2014, 12:53 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    samurai,

     

    Yup

     

    http://bit.ly/1m8GwTz
    27 Apr 2014, 04:29 PM Reply Like
  • samuraitrader
    , contributor
    Comments (876) | Send Message
     
    I grew up in Detroit. Been watching the decline since Coleman Young's days as mayor. Sad. 100 years ago it was the capital of the world with the blooming auto industry.
    27 Apr 2014, 04:37 PM Reply Like
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