The move aims to reduce the county’s underfunded pension liability.
Wayne County and about 5,000 retirees have agreed to a deal that will cut their health care benefits and save the county about $20 million each year.
Part of the plan is to cut the pensions of general retirees by 4.5 percent, while some retirees say that they are worried that the city could fall into debt and file for bankruptcy again.
Members of the public testify at a committee hearing in Lansing over Detroit’s “Grand Bargain” and the state’s possible $195-million contribution to the city’s bankruptcy plan.
Detroit is steering thousands of city workers into 401(k)-style retirement accounts and freezing their accrued pension benefits.
“Do I need to sell my house? Can I afford to live in a nursing home?”
AFSCME attorney Sharon Levine says a notice of appeal has already been filed in the case.
Lawyers for city unions and retirees are presenting reasons why Detroit’s historic bankruptcy request should be denied.
“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.
Roughly 1,200 city of Pontiac retirees are at risk of losing their healthcare benefits — as a funding tug-of-war continues.