Pension Cuts Become Reality For Detroit City Workers

This week Detroit city retirees begin to see reductions in pension benefits — cuts enacted as part of Detroit’s exit from bankruptcy.

Most retirees will see a 4.5 percent cut to their monthly pension payments.

Some could see as much as a 20 percent cut in their monthly check as the city seeks to gain back interest from investments it made on retirees’ behalf, which Detroit is now allowed to do, in the picturesque bankruptcy term “claw back.”

Police and fire department retirees are taking a smaller hit by having their cost of living increases adjusted.

There is financial help available through a program targeting retirees, in hopes of preventing the cuts from pushing them below the federal poverty line.

This post is a part of Next Chapter Detroit.


Next Chapter Detroit is a place to explore and understand the city’s bankruptcy, its impact on people and neighborhoods and its long-term implications. Powered by coverage and conversations from the media outlets of the Detroit Journalism Cooperative, Next Chapter Detroit provides fact-based reporting from trusted sources and opportunities for citizen engagement and is presented by WDET, Detroit's Public Radio Station.

Presented by WDET in partnership with the Detroit Journalism Cooperative.

Support for this project comes from the John S. and James L. Knight Foundation, Renaissance Journalism’s Michigan Reporting Initiative and the Ford Foundation.




About the Author

Quinn Klinefelter

Senior News Editor

I grab news in the morning, check the papers and the wires, call sources and take a big gulp of coffee. That’s how I start the day.  

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