City of Detroit close to pension deal, which could pave way for bankruptcy exit
Source: Detroit Free Press
8:37 AM, April 15, 2014
By Nathan Bomey and Joe Guillen
Detroit Free Press Staff Writers
The City of Detroit and groups representing city retirees could announce as soon as today that they have agreed to a deal on pension cuts, which could pave the way for a resolution to the largest municipal bankruptcy in U.S. history, according to sources close to the negotiations.
The two sides have made significant progress in mediation talks and could reach the framework of a deal as soon as today sources said on the condition of anonymity because the negotiations are supposed to be confidential.
The city is hoping to secure support for the deal from its two independently run pension boards — the Police and Fire Retirement System and the General Retirement System — as well as the U.S.-appointed Official Committee of Retirees.
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Because individual retirees and active vested pensioners must still cast ballots on Detroit emergency manager Kevyn Orr’s proposal, the deal would require the retirement systems and the Official Committee of Retirees to recommend a “yes” vote to pensioners.
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Contact Nathan Bomey: 313-223-4743 or nbomey@freepress.com. Follow him on Twitter @NathanBomey. Free Press Business Writer Alisa Priddle contributed to this report.
Read more: http://www.freep.com/article/20140415/NEWS01/304150034/Detroit-bankruptcy-pension-Chapter-9-Kevyn-Orr
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