Detroit is steering thousands of city workers into 401(k)-style retirement accounts and freezing their accrued pension benefits.
A Michigan loan board has approved Detroit’s proposal for up to a $350 million loan from Barclays Capital to help pay off some pension debt.
A crucial decision that keeps Detroit in bankruptcy court and puts pensions at risk can immediately be appealed to a higher court, a judge said Monday.
“I’m 81 years old, and I need every penny that I can get, and that I do get.”
“Do I need to sell my house? Can I afford to live in a nursing home?”
“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.
AFSCME attorney Sharon Levine says a notice of appeal has already been filed in the case.
One hundred noisy protesters marched while they awaited a judge’s decision on whether Detroit is eligible for bankruptcy.
“Orr is under cross-examination by union attorneys. He’s coming under fire for supporting cuts in retirees’ pensions …”
Lawyers for city unions and retirees are presenting reasons why Detroit’s historic bankruptcy request should be denied.