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Voting Results On Pension Cuts By City Employees And Retirees Expected Today

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DETROIT (WWJ/AP) – The city of Detroit is expected to release voting results Monday on pension cuts by city employees and retirees.

The outcome will have an impact on the city’s bankruptcy case, which goes to trial on August 14th.

Support for pension changes would give Detroit’s bankruptcy plan a big boost as Judge Rhodes decides whether the overall strategy is fair and feasible.

Detroit Representative Fred Durhal wasn’t encouraged just over a year ago when the Detroit Bankruptcy filing began but has had a change of heart.

“I think it’s moving along okay,” said Durhal. “It’s getting there, and I think that it’s going to get resolved by October 1.”

Approval would trigger $816 million from the state of Michigan, foundations and the Detroit Institute of Arts.

The counting of votes cast by creditors in Detroit’s bankruptcy case is a “little complicated,” but the city is on track to report results next week, an attorney said July 14.

More than 30,000 retirees and current and former workers were eligible to vote on pension changes.

The ballots are counted two ways: by a simple up-or-down vote and also by the size of a creditor’s claim. In the case of a retiree, it would be the pension owed. The job is being handled by a California contractor.

Financial aid from the state and other parties would prevent the sale of city-owned art and avert larger pension cuts.

General retirees would see a 4.5 percent cut and also lose annual inflation adjustments. Police officers and firefighters would lose a portion of their annual cost-of-living payment.

[Detroit Bankruptcy: Continuing Coverage]

 
TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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