Detroit Pension Bailout Bills Introduced

By: Associated Press
By: Associated Press
State would provide $195 million in return for oversight of city finances for the next 20 years.

The Detroit skyline rises behind the Monument to Joe Louis, also known as "The Fist," Thursday, July 18, 2013. State-appointed emergency manager Kevyn Orr asked a federal judge permission to place Detroit into Chapter 9 bankruptcy protection. (AP Photo/Paul Sancya)

Michigan would contribute a nearly $195 million lump-sum payment from the state's rainy day fund to bankrupt Detroit to bolster pension funds and prevent the sale of city-owned art under newly introduced legislation.
The 11-bill package introduced Thursday also would create an oversight committee to review Detroit's budgeting and spending for 20 years and move new hires to a 401(k) plan instead of a pension plan once a recently negotiated collective bargaining contract expires.
The seven-member committee would include appointees of the governor, state treasurer, legislative leaders and Detroit mayor.
The legislation also would provide for a separate investment committee to oversee Detroit pension funds. The intent is to pattern Detroit's oversight after the long-term oversight of New York City after its financial crisis in the 1970s.


WILX.com is happy to provide a forum for commenting and discussion. Please respect and abide by the house rules:

Keep it clean, keep it civil, keep it truthful, stay on topic, be responsible, share your knowledge, and please suggest removal of comments that violate these standards.

See full commenting rules...
powered by Disqus
WILX 500 American Road Lansing, MI 48911 517-393-0110
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 258568901 - wilx.com/a?a=258568901