Skip to comments.Detroit Plans to Cut Pensions by 84% or 16¢ on the Dollar
Posted on 10/28/2013 8:47:05 AM PDT by Hojczyk
Another Democrat Success Story The 23,500 pensioners in Detroit are going to have to adjust their budgets. The city plans on cutting pensions by 84 percent. Doug Ross and Reuters reported:
On Friday, city financial consultant Kenneth Buckfire said he did not have to recommend to Orr that pensions for the citys retirees be cut as a way to help Detroit navigate through debts and liabilities that total $18.5 billion.
Buckfire said it was clear that the city did not have the funds to pay the unsecured pension payouts without cutting them.
It was a function of the mathematics, said Buckfire, who said he did not think it was necessary for him or anyone else to recommend pension cuts to Orr.
Are you saying it was so self-evident that no one had to say it? asked Claude Montgomery, attorney for a committee of retirees that was created by Rhodes.
Yes, Buckfire answered.
Buckfire, a Detroit native and investment banker with restructuring experience, later told the court the city plans to pay unsecured creditors, including the citys pensioners, 16 cents on the dollar. There are about 23,500 city retirees.
Lawsuits as far as the eye can see.
Misinterpretation of the Michigan state constitution to claim this cannot happen because it is alteration of compensation agreements.
Moves by Obama, probably indirectly, to bail out Detroit, and especially the unions of Detroit.
The people need to take it up with a city council who kept promising more than they could ever deliver and made themselves rich doing so.
couldn’t happen to a nicer bunch......
Well DUH! A fourth grader could have told you that.
“It was a function of the mathematics, said Buckfire, who said he did not think it was necessary for him or anyone else to recommend pension cuts to Orr.”
One little part of the Entitlement State come crashing down...
Are all the other creditors only getting one-sixth of what they were owed?
That is gonna leave a mark.
..."LOL...we don't need no stink'n taxpayers!"
Detroit retired LIBs only getting 16%. That’s probably more than they deserve. Bwahahahahahahahahaaaaaaaaaaaaaaaaaaaaaaaa.
What’s your point?
My understanding is that Detroit has an art museum with numerous valuable pieces that are somehow owned by the city of Detroit. Its art could be sold for many billions of dollars.
I hope the Detroit pensioners recognize their level of importance in the world of liberal priorities.
No, it was a function of years and years of politicians making promises to the city employees that they would be taken care of. Instead of doing what any sane person would do - figure out what this week's paycheck would do to the employees future retirement funding and deposit that amount in a separate account as a "lockbox", they just said "we'll worry about taxing people later". You can get away with incurring debts now and paying in the future if you are growing, but as soon as Detroit's population started shrinking between the 1950 and 1960 census, i.e. long before the current employees and most retirees were hired, that there was no way to plan on that.
That headline is either bad math or bad English.
Do the f**kees get 84% of promised or 16% of promised?
Surely, this had to have been written by a lib - since math and libs are most definitely not acquainted.
That doesn’t really matter to Math. Math always wins.
Do you really think that politicians are affected by any laws that they pass?
If they did, they wouldn’t pass them — consider Bambicare. for instance.
According to the article, all the other unsecured ones are only getting the same thing. And most creditors don't requlire a city to put up collateral so I bet this would include the vast majority of the creditors.