Jul 18, · Detroit's $18 billion bankruptcy rocked all sorts of expectations. Back in July , Detroit became the largest U.S. city to ever file for federal bankruptcy protection. Detroit emerged from its. The answers to these and other questions soon will be revealed as U.S. Bankruptcy Judge Steven Rhodes preparers to hear the case of Detroit’s collapse, the largest Chapter 9 bankruptcy in karacto.xyzg: affordable care. Nov 08, · “What happened in Detroit must never happen again,” Judge Steven W. Rhodes of United States Bankruptcy Court in Detroit said as he approved a Missing: affordable care.
Related videosAffordable Care Act ruled unconstitutional
Local Radars. Your Weather Today In Detroit for June 16, Detroit should be fairly dry this coming week, according to the seven-day forecast from drone-powered weather service Saildrone.
The best chance of rain is predicted on Monday at 50 percent, with the potential for light rainfall of 0. He was posing for photos to commemorate his final start at the Pennsylvania track but seemed to be the only one at the party.
Trump sideswipes NASCAR, Wallace over flag and noose NASCAR's layered relationship with President Donald Trump took a sharp turn Monday when Trump took a sideswipe at the racing organization for banning the Confederate flag and wrongly accused the sport's only full-time Black driver of perpetrating "a hoax" when a crew member found a noose in the team garage stall. Hoodline crunched the numbers to find the best affordable burger outlets in Detroit.
Find the top bars in Detroit here. Hoodline crunched the numbers to find the best high-end New American restaurants around Detroit. Hoodline crunched the numbers to find the top butchers in Detroit. CBS From a dining establishment known for its brunch plates to a beauty salon that specializes in skin care treatments.
It could have been far worse. At one point during the bankruptcy journey, the city's general retirees were threatened with the possibility of seeing their pension checks slashed by up to 34 percent and police and fire retirees were looking at cuts of up to 10 percent.
Police and firefighter pensioners did not see upfront cuts to their pension checks. Police and fire also saw cuts relating to health care, and many are struggling with higher premiums under the Affordable Care Act, too. Bernstein is now counsel for the Foundation for Detroit's Future , a nonprofit affiliate of the Community Foundation for Southeast Michigan, which was set up to implement the funding of the "Grand Bargain" approved as part of Detroit's plan of adjustment.
Under the bankruptcy agreement, the city froze two existing pension plans, created two new plans for current and future workers, and established new governance structures to oversee the pensions. While the pension cuts and higher health-care costs for most are painful, many retirees remain hopeful that the city's continued rebound will lead to more stability for the city and the pension plans.
The retirees' commitment and dedication to the city was key. If retirees had not voted to approve the plan of adjustment in July , the grand bargain money would have gone away. But Bernstein and others argue that retirees would have been far worse off if the city continued on its path toward financial collapse. It was a shocking development for New York's bond industry, as City of Detroit pensions overall ended up with a better recovery rate than general obligation bondholders, much to the frustration of Wall Street.
The creative approach in Detroit meant the retirement commitments weren't honored but, at the same time, they weren't treated exactly the same as other creditors.
Aubry noted that the health of Detroit's pensions going forward depends heavily on the city's rebound. He said the fund had a rate of return of Detroit's General Retirement System funding level of the legacy plan improved from VanOverbeke said the investment environment has been rough in the first half of this year but he noted that the stock market had been stronger earlier. Strong returns in the stock market in and have helped many investments in pension funds in general.
As part of the deal, the city temporarily reduced its pension contributions until to give the city some budget relief. The city would have to increase its contributions significantly in In May, Moody's Investor Service announced an upgrade in the city's credit rating and outlook, reflecting an improvement in the city's finances and the city's move to implement a funding strategy for its looming pension obligations.
Detroit appears to be on track now to pay its pensions, if plan investment returns meet current assumptions, according to an analysis by the Pew Charitable Trusts released in March. But it's possible that unexpected costs, lower-than-anticipated investment returns and the city's budget challenges could cause problems down the road, the Pew report noted. The city took an important step last year, though, when it began setting aside money to deal with required contributions to the pension systems in the future, he said.
One challenge: More money will be going out to pay benefits than will be coming into the system for several years. So the system needs more available cash to pay benefits, impacting how investments are made. Everyone's financial squeeze was a little bit different under the bankruptcy even for retirees. Critics noted that Detroit's General Retirement System had some odd practices — including the fact that the Annuity Savings Fund offered a ridiculously high rate of return even during the stock market meltdown in They were giving employees all the upside.
Yokom, who is single, says she preferred to give up her money via a lump sum, instead of seeing an even smaller pension check each month. She doesn't understand why the pension board didn't take better care when it came to the payouts in the first place.
It's unlikely to happen any time soon. The plan of adjustment does allow for some restoration of benefits at some point, depending on performance. Yokom, who has two cats, Smoky and Shadow, said she pays more for health-care coverage than she might with other plans because she wanted to stay with her same doctors. She's also paying off a home equity loan for remodeling her kitchen.
So she works part-time, too. Contact Susan Tompor: stompor freepress. Follow Susan on Twitter Tompor. Share This Story! Even 5 years later, retirees feel the effects of Detroit's bankruptcy Detroit retirees who are too young for Medicare had to pay a steep price after the city's bankruptcy for coverage under the Affordable Care Act. Post to Facebook.