The Craig Fahle Show

What a Deal Between City and Pension Leaders Means for Detroit Bankruptcy

Wednesday, April 16, 2014

A tentative deal has been reached between Detroit bankruptcy officials and pension board leaders. The proposed cuts to retiree benefits are "dramatically lower than initially proposed," according to The Detroit Free Press.

"What we've had in the past 24 hours is a really big deal," says Sandra Svoboda, reporter for Next Chapter Detroit She says there has been significant movement from the city to reduce cuts to pensioner benefits. Previous cost-of-living cuts were halved from the original proposal, and the proposal would make no cuts to pensioner's monthly checks.

"So that’s basically good news for retirees covered by this.

"What we don’t yet know are whether other provisions are part of the agreement that will make significant changes. For example, will modifications be made to retirement eligibility like raising the age for it? Will the fire department assume any additional duties like emergency medical services? What is the final structure of the board that will govern the pension funds? What will health care benefits for retirees be?"

Find more coverage of Detroit's bankruptcy and its impact on people and neighborhoods on WDET's Next Chapter Detroit blog.

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