No Pension Cuts in Deal Reached with Detroit Fire, Police Retirees

No Pension Cuts in Deal Reached with Detroit Fire, Police Retirees

[Detroit Free-Press]

Kevyn Orr is a top partner at Washington law Firm Jones Day. (Photograph: AP)
Kevyn Orr is a top partner at Washington law Firm Jones Day. (Photograph: AP)

A major association representing Detroit’s police and fire retirees has agreed to support a deal with the City of Detroit in which uniformed pensioners would not receive cuts to their monthly pension checks.

The deal — revealed this afternoon by Detroit bankruptcy mediator Gerald Rosen — comes as the city is also close to reaching a settlement with its Official Committee of Retirees and two independently run pension fund boards.

Rosen said in a statement that the Retired Detroit Police and Fire Fighters Association agreed to support a deal that would involve no cuts to monthly pension checks and keeping “almost half” of annual cost-of-living adjustment increases.

The latest deal — which comes after separate accords with two global banks and unsecured bondholders — could hasten the city’s emergence from bankruptcy and speed the city’s plans to reinvest in services.

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