Detroit City Retirees Agree To 4.5% Cut In Pension Benefits

Law360, Los Angeles (May 2, 2014, 8:37 PM EDT) -- The city of Detroit reached an agreement Friday with the city's largest employee association that will cut their pension benefits by 4.5 percent and potentially hasten Detroit's exit from Chapter 9 protection, according to the law firm representing the Detroit Retired City Employees Association.

Retirees will also lose cost-of-living benefits under the terms of the deal, which is similar to an agreement the city reached roughly two weeks ago with the Retired Detroit Police and Fire Fighters Association, according to Lippitt O'Keefe Gornbein PLLC.

The city...
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