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 city’s 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 city’s pensioners, 16 cents on the dollar. There are about 23,500 city retirees.
Yep. Recall, these are people who think a reduction in an increase is a decrease.
Awwwwww — 16 cents on the dollar is still too much.
Is this for people already retired and collecting?
There is going to be riots
Detroit has been funct-up for decades ....
Warms my heart to see this. Nothing pisses me off more than seeing some 45 year old collecting a pension.
There’s nothing left to burn down.
More of a question.
Isn’t cutting by 84 percent 84 cents on the dollar?
I know it’s a question, but it is a question that begs a point. I think I know what it is.....just wondered what you would say.
Reminds me of that Ayn Rand quote, “We can evade reality, but we cannot evade the consequences of evading reality”
That, and some seriously bad pension management and oversight. You wonder if they chose a plan based on one year's good returns, and then projected that growth rate over twenty years? A high growth rate would really cut down on contributions, wouldn't it? Or, did they not see attrition coming, and plan for lower contribution rates?
And isn't it funny, the same entities that depend so heavily on a robust stock market and economy to drive their pension plan growth, are the same entities working their hardest to create a political and regulatory environment that won't allow businesses to be successful?
I’m sure Nebraska has more than enough money to pay for this.
Not all creditors are equal in the eyes of the law. Bankruptcy has several levels of creditors who have various rights.
Because I'm wondering if all creditors are feeling the pain equally or if the city retirees are bearing the bulk of the costs.
I'd also like to know if any of the former mayors and councilmembers who drove the city into the ground and who may also have city pensions are covered by the same plan as the rest of the city employees are. If not, then do they get 16 cents on the dollar as well?
Just waiting for the cries for the federal govt. to bail them out!!
That’s what I thought. Your inner liberal is showing. Your assumption that these retirees are innocent victims is just breathtaking. They are not victims...THEY ARE THE PROBLEM. They demaned these provisions, they voted for those who promised them - they are the ones who were so ignorant as to think these were realistic or sustainable.
This is at least a partial answer...although the city employees through their unions pretty much caused the problems so they should be the ones to bear most of the burden!!
I didn't post the article or write the title, but yes, it's and 84 cent cut, but it leaves a 16 cent on the dollar payout. The unions will scream bloody murder!
YES.....doodle pay attention to my man here....
Don’t smirk dear people - who’s Social Security do you think is going to pay China back for the 18 Trillion dollar loan?
Pray you get 16 cents on the dollar.
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