Pension Funds Line Up Behind Smaller Cuts

April 17, 2014

Sketch by Jerry Lemenu

“It’s really a question of risk and reward: how much are you willing to gamble that you’re going to prevail at the end of the day, and how much are you willing to spend to get there? And in the end, is the incremental benefit worth it?”

—Doug Bernstein, Bankruptcy Attorney at Plunkett-Cooney

The judge in Detroit’s bankruptcy case will hear objections Thursday to the city’s financial disclosure statement, which is hundreds of pages long. The hearing comes as Detroit’s retirement systems begin to vote on pension agreements with Emergency Manager Kevyn Orr’s office. The General Retirement System, which represents non-uniformed retirees, voted to accept Orr’s offer of 4.5% cuts in monthly pension benefits and elimination of cost-of-living adjustments. Pension recipients and Judge Steven Rhodes still have to approve the agreement. WDET's Pat Batcheller asked Plunkett Cooney bankruptcy attorney Doug Bernstein whether he's surprised that the city's proposed pension cuts aren't as deep as many expected. Click on the audio link above to hear the conversation.

Sketch by Jerry Lemenu