Detroit pension deal avoids big benefit cuts - Encore - MarketWatch

Detroit pension deal avoids big benefit cuts - Encore - MarketWatch

The police and fire-department retirees had originally faced cuts of around 10% to their monthly pension checks, along with a complete elimination of any cost-of-living adjustments (COLAs). Under the announced deal, however, pension benefits won’t be cut at all, while the size of annual COLAs will be cut by slightly more than half.
The broader municipal-employee pension fund is in worse financial shape than the uniformed retirees’ fund, and consequently, Detroit’s original plan had called for their pension checks to be reduced by as much as 34%. Last night’s deal will reduce their monthly benefits by 4.5%, and their COLAs will be eliminated. Representatives of both retiree groups said that their COLAs could be restored or boosted in the future if the city’s overall financial health improved.
This seems odd, Detroit found a large pile of $$$ someplace? Donations aren't enough. 

As usual we have to do the work that the so called Journalists do not do...such as this Gem


Michigan, White House discuss federal money for bankrupt Detroit: report
| Reuters


Michigan officials and President Barack Obama's Administration are discussing a plan to free up $100 million in federal money to aid Detroit's retired city workers, the Detroit Free Press reported on Tuesday.
Citing two people familiar with the talks, the newspaper said the talks were centered around federal money flowing to Michigan for blight removal. Under the plan, $100 million would be earmarked for Detroit, reducing the $500 million the city's emergency manager, Kevyn Orr, plans to use to eliminate blight over the next 10 years.

A tax payer funded BAILOUT to Obama's buddies...makes you feel warm and fuzzy don't it.