Pensioners Lose Appeal of Detroit Bankruptcy Cuts

Via Freep.com,

By Matt Helms, Detroit Free Press,

September 30, 2015,

A federal judge today ruled against Detroit pension beneficiaries who had appealed the city’s final bankruptcy plan of adjustment, the post-bankruptcy blueprint for city finances and operations after it emerged from the nation’s largest-ever municipal insolvency.

Judge Bernard Friedman of the U.S. District Court in Detroit tossed out appeals by city retirees who had asked the federal court to remove pension cuts from the city’s December 2014 bankruptcy settlement with thousands of creditors, deals that helped the city shed $7 billion in debt.

The retirees, including members of the Detroit Active and Retired Employee Association (DAREA), had sought full restoration of pension benefits, even though a majority of retirees in the city’s General Retirement System voted to accept the settlement.

Read the full article.

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