detroit retiree

Politics & Government
7:00 am
Thu April 17, 2014

Now it's up to Lansing to make Detroit's "grand bargain" work

Credit 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.

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Stateside
4:21 pm
Mon December 9, 2013

Former Wayne State professor donates $5 million to the DIA and Detroit retirees

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.

Economy
3:59 pm
Fri November 15, 2013

The 10 Michigan communities with the highest legacy costs

Detroit has the third-highest legacy debt per capita.
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.

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Stateside
4:20 pm
Thu November 14, 2013

Could a private fund save both the DIA and public pensions?

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.

Politics & Government
2:36 pm
Sat November 9, 2013

Detroit retiree health coverage OK through February

(file photo)
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.