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Retirees' committee will back Detroit pension cuts

Peter Martorano

DETROIT (AP) - A committee representing Detroit retirees has agreed to endorse the city's plan to cut pensions in bankruptcy.

The committee is supporting deals struck last week that would cut the pensions of general retirees by 4.5 percent and eliminate cost-of-living payments. Police officers and firefighters would see a cut only in their annual inflation allowance.
Detroit also wants to recover certain generous annuity payments made since 2003. Retirees' attorney Sam Alberts tells The Detroit News that no pensioner would suffer more than a 20 percent cut of their entire benefit.
Alberts says the retirees' committee negotiated better funding for health care. The tentative agreement was announced Friday.
Everything still is subject to a vote from roughly 30,000 retirees and city employees in the weeks ahead.

The Associated Press is an independent global news organization dedicated to factual reporting.
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