detroit retiree

Sarah Cwiek / Michigan Radio

Detroit retirees face some big cuts in 2015—and hundreds of them packed two area churches to hear more about it Wednesday.

Detroit’s non-uniform retirees will take 4.5% direct pension cuts as a result of the city’s bankruptcy restructuring plan, which took effect Dec. 10.

Kate Wells / Michigan Radio

This week, Jack Lessenberry and Emily Fox discuss what to expect from the Legislature’s lame duck session, repercussions from Ferguson, and a fund to help Detroit pensioners.


Sarah Cwiek / Michigan Radio

The clock is ticking.

Detroit's bankruptcy settlement has gotten through the State Legislature and the private foundations. Now it's all up to 32,000 city employees and retirees.

They're being asked to say "yes" to having their pensions cut, and promising not to sue the city.

In return, the pension cuts will not be as severe as they would be under what's become known as the Grand Bargain.

Michigan Radio's Detroit reporter Sarah Cwiek joined us on Stateside. She explained the transparency issue surrounding the voting process, what the different classifications of retirees mean, and what we should keep our eyes on, during next week leading up to the July 11th deadline.

*Listen to full interview above.

(photo by Steve Carmody/Michigan Radio)

It was a big win for Detroit's bankruptcy struggle when the state Senate approved that $195 million rescue package earlier this week. That vote "sealed the deal" on the state's piece of the so-called "grand bargain."

But is the complicated and precarious deal a reality yet?

As Detroit News business columnist Daniel Howes explained on the show today, the answer is "no."

*Listen to the full interview above. 

Peter Martorano / Flickr

DETROIT (AP) - A committee representing Detroit retirees has agreed to endorse the city's plan to cut pensions in bankruptcy. The committee is supporting deals struck last week that would cut the pensions of general retirees by 4.5 percent and eliminate cost-of-living payments. Police officers and firefighters would see a cut only in their annual inflation allowance. Detroit also wants to recover certain generous annuity payments made since 2003.

Sam Beebe

Now that Detroit’s bankruptcy is moving along, Gov. Rick Snyder is moving to secure the state’s end of a so-called “grand bargain.”

It would use $816 million to minimize city pension cuts, and protect the Detroit Institute of Arts from potential liquidation to pay off creditors.

DIA

There's been a new development in the unfolding story about Federal Judge Gerald Rosen and his bid to protect the DIA collection and the pensions of Detroit city retirees.

Judge Rosen is serving as the mediator in the Detroit bankruptcy case. We've heard how he is trying to craft together a plan wherein at least 10 national and local charitable foundations would chip in to create a $500 million fund, a fund that could be leveraged to not only protect the DIA treasures but to lessen the pain of retiree pension cuts.

Late last week, a former Wayne State Chemistry professor stepped forward with an offer.

Dr. A. Paul Schaap developed a molecule that created light through chemistry. His discovery proved very useful in a wide range of medical tests. He then founded the company Lumigen, and he made many millions as a biotech entrepreneur.

Over the years, Paul Schaap has given many millions back to Wayne State, to Hope College, to professors and researchers. Now, Paul Schaap is donating $5 million to help the DIA and the city retirees.

Dr. A. Paul Schaap joined us today.

Listen to the full interview above.

Patricia Drury / Flickr

To call Detroit’s legacy costs underfunded would be, well, an understatement.

According to the city’s numbers, Detroit’s pension and retiree healthcare funds are about $9.2 billion short.

But Detroit is not the only Michigan city with major legacy costs — not by a long shot.

Legacy costs, or costs undertaken by local government for future use, have been taken on by more than 280 of Michigan’s 1,800 communities, according to data compiled by Bridge Magazine.

And while Detroit has the highest amount of total unfunded legacy cost, the per capita numbers show a slightly different picture.

The Detroit Institute of Arts
Flickr

If anything’s clear coming from Detroit’s bankruptcy case it is this: the city needs new solutions.

Daniel Howes, Detroit News business columnist, wrote his column today on a proposal from Chief U.S. District Judge Gerald Rosen. Rosen is proposing a new private fund that could have a major impact on the future of the Detroit Institute of Arts, the city’s retired workers and bankruptcy proceedings.

Listen to the full interview above.

Steve Carmody/Michigan Radio

DETROIT (AP) - The city of Detroit is suspending a plan to change retiree health insurance, at least through February.

Emergency manager Kevyn Orr says his staff will negotiate with a committee created to represent retirees during the city's bankruptcy case. He hopes it will lead to a long-term solution.

The city had proposed shifting retirees to Medicare, effective Jan. 1. Retirees under age 65 would have been given a $125 monthly stipend to get their own insurance.