DETROIT (AP) — Detroit is steering thousands of city workers
into 401(k)-style retirement accounts and freezing their accrued
pension benefits.
The change doesn’t affect police officers and
firefighters, whose pension fund is considered to be in better shape
than the fund covering other city workers.
The Detroit News (http://bit.ly/KwDTOF ) says
emergency manager Kevyn Orr signed the order Dec. 30. He says
freezing benefits will let Detroit put more money into essential
services.
Pension fund spokeswoman Tina Bassett calls the freeze
"outrageous." She says the fund isn’t the cause of Detroit’s financial
problems.
Detroit is trying to fix its long-term debt in
bankruptcy court. Orr says the city’s two pension funds are underfunded
by $3.5 billion.
Orr’s order also eliminates cost-of-living increases for retirees in the general pension fund.
Copyright 2014 The Associated Press. All rights
reserved. This material may not be published, broadcast, rewritten or
redistributed.
DETROIT (AP) — Detroit is steering thousands of city workers
into 401(k)-style retirement accounts and freezing their accrued
pension benefits.
The change doesn’t affect police officers and
firefighters, whose pension fund is considered to be in better shape
than the fund covering other city workers.
The Detroit News (http://bit.ly/KwDTOF ) says
emergency manager Kevyn Orr signed the order Dec. 30. He says
freezing benefits will let Detroit put more money into essential
services.
Pension fund spokeswoman Tina Bassett calls the freeze
"outrageous." She says the fund isn’t the cause of Detroit’s financial
problems.
Detroit is trying to fix its long-term debt in
bankruptcy court. Orr says the city’s two pension funds are underfunded
by $3.5 billion.
Orr’s order also eliminates cost-of-living increases for retirees in the general pension fund.
Copyright 2014 The Associated Press. All rights
reserved. This material may not be published, broadcast, rewritten or
redistributed.