Detroit emergency manager meets with pension heads
DETROIT (AP) — Detroit's emergency manager is meeting behind closed doors with city pension leaders.
DETROIT (AP) — Detroit’s emergency manager is meeting behind closed doors with city pension leaders.
The key group is being asked to endure huge cuts in benefits and health insurance or face the uncertainty of the largest municipal bankruptcy in U.S. history.
Emergency manager Kevyn Orr did not speak to reporters ahead of Wednesday’s meeting, but a lawyer for some of the pensioners says they were summoned by Orr for a presentation.
Michael Van Overbeke says the two sides “have not had true discussions” yet.
Some bankruptcy experts say the session could be the tipping point that leads to an unprecedented bankruptcy.
The city’s retirement system is underfunded by $3.5 billion. Orr’s plan asks some to take only 10 cents on the dollar — or less — on the debt the city owes.
Copyright 2013 The Associated Press.
