According to a Reuters report, plans by Detroit’s Emergency Manager Kevin Orr to freeze the city’s pension plan and halt payments into the plan have been delayed to allow for the mediation process to proceed. Additionally, the city’s planned 401(k)-like plan set to launch in 2014 has been delayed due to the decision to freeze the pension plan, according to a story in 401kWire (subscription required).
Detroit’s pension plan covers more than 5,000 current workers who would have been affected by the new DC-like plan. No record keeper or administrator has been named as of yet.
In other news, BlackRock has lodged a court filing (subscription required) reserving its right to join Ambac in support of its case against Detroit. The firms say that bondholders should be paid before other creditors.
