Detroit Retirees Unhappy with Pension Proposal

By: Associated Press
By: Associated Press
Retirees say offer is designed to split police & firefighters from the rest of the pensioners.

Protesters march outside the Theodore Levin United States Courthouse, in Detroit, Wednesday, July 24, 2013.

Some Detroit retirees say a proposal offering former police officers and firefighters smaller cuts to their pensions than other former workers under the city's bankruptcy restructuring is divisive.
The plan calls for reductions of 6 percent for police and firefighters and 26 percent for other former employees.
The catch: Both retiree groups have to agree to the plan as offered, or cuts would rise to 10 percent for uniformed retirees and 34 percent for others.
Bankruptcy attorney Anthony Sabino says each group of retirees, like other classes of creditors, has its own vote. If either side votes `yes,' the bankruptcy judge could OK the plan over other creditor objections.
Retiree Donald Smith, who would take the larger cut, says the plan was designed to divide the pension groups.

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