Detroit

Cutting Detroit Retirees’ Pensions Violates State Constitution

Posted on 08/23/2013 by | AARP Blog Author | Comments

PoliticsLast month, we heard the news about the City of Detroit filing for Chapter 9 bankruptcy protection in federal court, becoming the largest city to ever do so.  The city’s financial crisis threatens the retirement security of more than 30,000 active and retired employees, and almost immediately, lawsuits were filed in state court to protect Detroit’s two pension funds during the city’s restructuring. Michigan Attorney General Bill Schulte has said that, under the state constitution, pension obligations to state and …

Is Detroit Obliged to Fulfill Its Pension Promises?

Posted on 07/25/2013 by | General News | Comments

Bulletin Today | Money & SavingsBy David A. Lieb of The Associated Press As the once-proud city of Detroit humbles itself in bankruptcy court, its financial future may hinge on this key question: Is the city obliged to its past? Or can Detroit renege on its promises to thousands of retirees for the sake of its present city services? The legal question at the heart of Detroit’s bankruptcy filing has never definitively been answered by the nation’s highest courts. But it could become increasingly important …

Could Howdy Doody Save Detroit?

Posted on 07/19/2013 by | In Other News . . . | Comments

Bulletin Today | Money & SavingsOn June 18, Detroit, which has been wallowing in something like $18 billion of debt, became the largest city in U.S. history to seek bankruptcy protection. Detroit’s creditors have already vowed to go to war over a proposal by the city’s emergency financial manager to settle with them for just pennies on the dollar. Now they’re floating the nuclear option: forcing a sell-off of the holdings of the museum of the Detroit Institute of Arts, which is home to 60,000 …