Friday, February 21, 2014

Detroit current retirees stiffed; first time ever in a municipal bankruptcy?

CNN reports that the reduction of pensions to current retirees from Detroit's workpalce is the first ever for a municipal bankruptcy.  I thought this had happened before in California (like Stockton, covered by Morgan Spurlock). 

The Michigan state constitution is supposed to have protected the pensions promised under worker contract, but judge Rhode had ruled that federal law would trump a state constitution.

The story, on CNN Money, by Melanie Hicken, is here.
  
Health insurance for retirees who are not yet old enough for Medicare will apparently be eliminated, and these individuals will have to deal with Obamacare.  Here's an older story about Michigan's exchanges, link.

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