Report Uncovers Inconsistencies In Detroit Pension Funds

Law360, New York (September 26, 2013, 7:11 PM EDT) -- An audit report released Thursday shows that Detroit's pension funds have distributed funds to members inconsistently for several years, and that the excess allocations may have contributed substantially to the city's debt problem.

In an investigation conducted at the behest of Emergency Manager Kevyn Orr, the auditors concluded that during some years, annuity participants who contributed similar amounts over the course of their employment received "excessively disproportionate" refund amounts. Additionally, it found that the pension funds surpassed the legal limit for investing in real estate funds....
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