What happened to Detroit pensions?

03/16/2020 Off By admin

What happened to Detroit pensions?

The city’s bankruptcy Plan of Adjustment gave Detroit a decade-long reprieve from making regular pension fund payments, while cutting retirees’ pension and health care benefits and transferring current workers to a less generous retirement plan.

Is Detroit on a comeback?

DETROIT — Downtown Detroit was returning to its roots as a vibrant city center, motoring away from its past as the model of urban ruin. Anthony Frank, who manages Dessert Oasis and Coffee Roasters on Griswold Street, said everyone loves Detroit’s comeback story, but a 20% drop in business has been difficult to handle.

Why is Detroit broke?

Over decades, Detroit has suffered from institutionalized racism, white flight to the suburbs, and the loss of manufacturing jobs. The population peaked at 1.85 million in 1950 and has declined in every subsequent census count. One plug for the city’s deficit will be $72 million from blight removal funds.

How bad is Detroit Really?

Local crime rates are among the highest in the United States (despite this, the overall crime rate in the city has seen a decline during the 21st century), and vast areas of the city are in a state of severe urban decay. Poverty, crime, shootings, drugs and urban blight in Detroit are ongoing problems.

Who is the richest woman in Michigan?

#253 Marian Ilitch I, as she’s known, now owns the pizza chain, which hauls in more than $4 billion in annual systemwide sales. She also owns the Detroit Red Wings and MotorCity Casino Hotel; Mike’s Detroit Tigers are now in a family trust.

How much debt did Detroit shed in bankruptcy?

It’s a financial feat few experts predicted could happen so quickly. But while the city’s economy is still improving, some Detroiters fear it may be leaving behind those who toughed it out when times were bad. Detroit shed about $7 billion dollars of debt when it exited bankruptcy.

When did Detroit file for Chapter 9 bankruptcy?

After several months of negotiations, Orr was ultimately unable to come to a deal with Detroit’s creditors, unions, and pension boards and therefore filed for Chapter 9 bankruptcy protection in the Eastern District of Michigan U.S. Bankruptcy Court on July 18, 2013.

How is the poverty rate in Detroit MI?

Although Detroit’s poverty rate has dropped slightly in recent years, it’s still the poorest big city in the nation. Almost half of Detroit children live below the poverty line. City officials say there are employers clamoring for new hires, just not on the auto assembly lines of old.

Why was it premature for Detroit to file bankruptcy?

Business and labor leaders reacted to the filing. Detroit union leaders called Orr’s move to declare bankruptcy premature due to ongoing financial negotiations with creditors, unions, and pension boards, but also stated that employees will continue to work in a typical fashion.