Detroit Pension Fund
Likely Democratic gubernatorial nominee Mark Schauer says the state must help the Detroit pension fund — because it’s required by the Constitution.
“I want to say to everyone whose a resident of the city, no one is more aware of the hardship that this is going to cause to a number of different people than me,” Kevyn Orr said.
A court filing has revealed details of nearly $1 billion in payouts known as the 13th check from a Detroit retirement system.
Orr has said the city has underfunded obligations of about $3.5 billion for pensions and $5.7 billion for retiree health coverage.
The report says spending was “effectively robbing” pension funds and contributed to a “significant underfunding” of the funds.
The former chief of staff of a Detroit pension fund trustee has pleaded guilty to accepting bribes as part of the federal government’s long-running corruption investigation in the city.
“I think it’s despicable… and I think every Detroit resident will also find that this action is despicable,” said Richard Mack, Jr., an attorney for AFSCME Council 25.
Kevyn Orr has ordered a fraud and corruption investigation into the police and fire pension fund and general employee pension fund.
Four trustees of Detroit’s two reportedly underfunded public pension funds are expected to travel this weekend to a Hawaiian resort for a conference, with the $22,000 tab paid for by the funds.
Two city of Detroit officials have been indicted on charges of corruption involving $200 million and investments in the city’s pension funds.