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Detroit Retirees Vote For 4.5% Pension Cut In Landslide

From a gobsmacked Associated Press:

Detroit retirees vote in favor of pension cuts

By Ed White | July 21, 2014

DETROIT (AP) — Workers and retirees approved pension cuts in Detroit’s bankruptcy by a landslide, the city reported Monday, a crucial step to emerging from the largest municipal insolvency in U.S. history.

The city disclosed results from two months of balloting, which ended July 11…

Two months of balloting? That’s what the Democrats want for every election.

General retirees would get a 4.5 percent pension cut and lose annual inflation adjustments. They accepted the changes with 73 percent of ballots in favor. Retired police officers and firefighters would lose only a portion of their annual cost-of-living raise. Eighty-two percent in that class voted "yes." …

4.5% less of something is better than getting 100% of nothing. So the amazing thing is that so many find this amazing.

Approval of the pension changes triggers an extraordinary $816 million bailout from the state of Michigan, foundations and the Detroit Institute of Arts. The money would prevent the sale of city-owned art and avoid deeper pension cuts. The judge, however, still must agree.

And if he agrees, his decision will be appealed.

The average annual pension for police and fire retirees is $32,000, while most other retired city workers get $19,000 to $20,000. Detroit emergency manager Kevyn Orr has said pension changes are unfortunate but necessary because two funds are underfunded by billions. If investment performance improves in the years ahead, he said, the cuts could be restored.

Don’t worry. If this cut goes through, the retirees will soon be back in court suing to have it undone, even if investments don’t improve.

The Michigan Constitution says public pensions can’t be cut, but [Judge Steven ] Rhodes, in his most significant decision in the case, said in December that federal bankruptcy law trumps that shield. It was a groundbreaking opinion that could influence local governments across the country that go broke…

This ruling will be appealed and struck down as unconstitutional, just as soon as they can be sure to find a ‘reliable’ judge.

This article was posted by Steve on Tuesday, July 22nd, 2014. Comments are currently closed.

One Response to “Detroit Retirees Vote For 4.5% Pension Cut In Landslide”

  1. GetBackJack says:

    The Union giveth and the Union taketh away

    You fools

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