To dispel the rumor that Detroit workers can avoid cuts to their pensions by retiring early, Detroit held a series of forums led by the spokesperson for the city’s Emergency Manager. The forums were held after documents and emails were spread indicating that those who retired before July 1 would not have their pension benefits cut. Fifty people put in their retirement papers as a result.
Though Detroit’s firefighters and police were spared pension cuts, other workers are facing a 4.5% decrease and loss of their COLA. The state, private institutions and the Detroit Institute of Arts have pledged almost $1 billion in aid if the pension deal is approved — otherwise, pensioners could face an estimated 27% cut.
