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Detroit bankruptcy pension brawl

detroit bankruptcy pension brawl

Mar 07,  · Bad news keeps on coming for some Detroit retirees hit by the so-called “clawback.” They must pay back money the city says they were over-paid through excessive interest on annuity savings funds meant to bolster their retirement income.. For many retirees, that adds up to a lot more than the % direct pension cuts that general system retirees have to absorb. Mar 03,  · The pension checks of Detroit city workers saw their first reductions Sunday, in line with the bankruptcy plan imposed by federal judge Steven Rhodes. The city of Detroit, Michigan, filed for Chapter 9 bankruptcy on July 18, It is the largest municipal bankruptcy filing in U.S. history by debt, estimated at $18–20 billion, exceeding Jefferson County, Alabama's $4-billion filing in Detroit is also the largest city by population in the U.S. history to file for Chapter 9 bankruptcy, more than twice as large as Stockton, California. detroit bankruptcy pension brawl

After demolition, FGIC would receive the arena site and an adjacent parking lot, giving the company nearly 9 acres 3. On November 7, Judge Rhodes accepted the city's plan of adjustment, 17 months after the city had filed bankruptcy—a far shorter time frame that had been predicted based on other municipal bankruptcies. At the hearing Rhodes remarked, "We have used the phrase 'the Grand Bargain' to describe the group of agreements that will fix the city's pension problem.

That description is entirely fitting. In our nation, we join together in the promise and in the ideal of a much grander bargain. It is the bargain by which we interact with each other and with our government, all for the common good. That grander bargain, enshrined in our Constitution, is democracy. It is now time to restore democracy to the people of the City of Detroit".

The following day Detroit exited bankruptcy protection with finances returned to the control of city, subject to three years of oversight by the Detroit Financial Review Commission.

From Wikipedia, the free encyclopedia. This article needs to be updated. Please update this article to reflect recent events or newly available information. September See also: Decline of Detroit. Michigan Governor Rick Snyder Republican. Detroit Mayor Dave Bing Democrat. This section needs additional citations for verification.

Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Michigan portal. The New York Times. Retrieved July 19, Office of the Governor. March 14, Retrieved April 3, The Detroit News. Archived from the original on July 19, Archived from the original on July 23, Detroit Free Press. Retrieved July 24, Bankruptcy Court for the Eastern District of Michigan. August 2, Retrieved August 2, Retrieved December 3, The Detroit Free Press.

Retrieved November 10, The Wall Street Journal. Retrieved February 8, Rick Snyder takes over Detroit's finances amid financial emergency". CTV News. Associated Press. February 20, Retrieved July 18, Rick Snyder ".

July 18, The Washington Post. USA Today. Retrieved May 15, BBC News. May 13, Fox News. The Boston Globe. Retrieved December 15, The Express. Washington, DC. Eastern District of Michigan U. Bankruptcy Court. July 19, The Seattle Times.

Detroit, Michigan. September 15, Bloomberg Law. Retrieved July 29, Chicago Tribune. Reuters and Chicago Tribune. Archived from the original on July 21, Retrieved July 26, March 7, The Huffington Post. July 20, Rick Snyder: Government bailout is the wrong answer for Detroit". Retrieved July 20, New York Times. Retrieved August 8, Business Week.

Constitution of Michigan of PDF. State of Michigan. August Jones Day. Retrieved July 22, Retrieved July 23, Retrieved July 27, Retrieved August 21, Retrieved August 13, August 26, Retrieved September 4, August 19, Section c " PDF.

The Bond Buyer. Retrieved August 22, September 12, Retrieved September 14, Retrieved December 4, Retrieved 23 September December 5, Retrieved December 5, Retrieved December 18, Retrieved November 21, Editorial: Detroit's 'grand bargain' a grand piece of work The Detroit News. October 17, October 16, Retrieved October 16, November 12, Detroit News.

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If you see comments in violation of our community guidelines , please report them. A retired widow, Debra Westbrook spends most of her time caring for her bedridden adult son. Westbrook worked for the city of Detroit for 33 years before retiring in as the city struggled with its finances. Her son, Marvin, 32, was born premature and has endured cerebral palsy, hydrocephalus and seizure and thyroid disorders.

He's undergone numerous brain surgeries, added Westbrook, who has been a single parent since her husband was fatally shot in the city in He saw me through to work those 33 years," she said. Detroit filed for the largest municipal bankruptcy in U. Under the court-approved plan, about 32, active and retired city workers were affected by pension cuts and health care reductions.

General workers endured a 4. Donald-Ray Smith worked 38 years for Detroit, starting as a bus driver in the s.

He went on to earn a bachelor's and master's degrees, ascending the ranks from a junior transit planner to a principal city planner. When he retired in , he was looking forward to a "great pension. He was among a number of retirees involved in a lawsuit against the city, arguing they deserved the pension that was promised before the bankruptcy filing. A federal appeals court ultimately ruled in the city's favor, saying the emergence from bankruptcy in was the result of a series of major settlements between the city and its creditors and must not be disturbed.

The reductions, while painful for some, could have been much worse, noted Gerald Rosen, the former chief U. District judge behind the so-called "grand bargain" settlement credited with helping speed Detroit through its bankruptcy.

But there were decades of broken promises," Rosen told The Detroit News. It's a sad but true fact. The grand bargain was a pillar of the debt-cutting plan crafted to shield the Detroit Institute of Arts collection from creditors and soften retiree pension cuts. Bankruptcy Judge Steven Rhodes, who presided over the city's case.

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