Detroit retirees back pension cuts by a landslide
Tue, 22 Jul 2014 11:23:33 GMT —
Detroit's emergency manager is praising workers and retirees who approved pension cuts as a way to get the city out of bankruptcy.
Results filed late Monday show the changes were endorsed by a landslide. The tally gives the city a boost as Judge Steven Rhodes determines whether Detroit's overall strategy to scrub billions in debt is fair and feasible to all creditors. Trial starts Aug. 14.
Emergency manager Kevyn Orr says retirees made an "informed, positive decision."
General retirees would get a 4.5 percent pension cut and lose annual inflation adjustments. Retired police officers and firefighters would lose a portion of annual cost-of-living raises.
Their approval triggers an $816 million bailout from the state, foundations and the Detroit Institute of Arts to prevent the sale of city-owned art and avoid deeper pension cuts.