Emergency Manager Kevyn Orr has frozen the city’s pension plans for all non-uniform employees, closing the General Retirement System effective Dec. 31.
Orr’s
Dec. 30 action freezes earned pension benefits for employees in the
General Retirement System and creates a new 401(k)-style defined
contribution retirement plan for existing and future city workers
starting Jan. 1, according to a copy of the emergency manager’s order
obtained by The Detroit News.
As part of
the order, Orr also eliminated the pension “escalator,” effectively
eliminating any future cost-of-living increases for all retired city
employees in the General Retirement System.
The
emergency manager’s order also closes the pension system’s Annuity
Savings Fund, an added benefit for some municipal workers. Under the
order, years of service and final annual compensation used to calculate
pensions will be frozen and the city will make no other contributions to
the fund.
Another Liberal Failure of a promise to pay ( You mean they lied to you? Ha ha ha ha ha! ...Yes I'm laughing out loud...Party of the People..
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