U.S. Bankruptcy Judge, Steven Rhodes, has ruled that Detroit may reduce pensions if needed. Judge Rhodes is permitting the bankruptcy filing of the City of Detroit to proceed. What does this mean for pensioners? It is too early to determine. However, this decision does open the door for possible pension reductions.
At this point, no one can predict the amount of the possible reductions. Judge Rhodes did warn that he will not approve excessive cuts to the retiree’s pensions. Unfortunately, like the Detroit pensioners, we will just have to wait and see what unfolds. Read more about this here.
If you have questions about your pension, or would like to learn more about the Mid-America Pension Rights Project, visit this website.
– Sandra Wisnewski, Director, Mid-America Pension Rights Project
The Mid-America Pension Rights Project is a program of Elder Law of Michigan.