The Detroit City Council has voted to earmark $50 million for pension funding. It’s part of the city’s effort to collect $337 million needed by 2023 for the Retiree Protection Fund that will help ensure more complete funding for the city’s obligations to retirees.
John Hill, the city’s chief financial officer, says the money will be set aside in a trust that will collect interest over the years. Mayor Mike Duggan presented the plan to City Council in February.
“Very shortly we will be going to the council with legislation to set up this section 115 trust that will allow the money to be invested exclusively to help support the pension payments,” Hill says.