DETROIT — The Police and Fire Retirement System of the city of Detroit says its members have spoken with their votes on accepting the settlement terms under Class 10 of the City’s Plan of Adjustment in the largest municipal bankruptcy in U.S. history.
“This has been an emotional rollercoaster for all active duty and retirees involved in the bankruptcy proceeding,” said Police and Fire Pension Fund spokesman Bruce Babiarz. “With Classes 10 and 11 voting to accept the terms of the settlement proposal it would appear the bankruptcy plan confirmation trial will proceed next month with the support of the pensioners.”
The Police and Fire Retirement System held an informational meeting for members and beneficiaries and provided regular updates from its restructuring team on its website and through emails and other communications with members during the bankruptcy proceedings.
“The people whose lives have been most impacted by the bankruptcy have spoken with their ballots to accept the settlement proposal negotiated to resolve the status of their pensions in Detroit,” Babiarz said. “This has been a highly complex and protracted negotiation and there remain a number of issues to be negotiated with the city and resolved in the confirmation trial before this matter is concluded.”
Under the proposed plan, Police and Fire pensioners will not receive pension cuts but they will have their Cost of Living Allowance reduced to about 1 percent annual increases, a reduction of approximately 55 percent. General city workers will have pensions reduced by 4.5 percent and will not receive any COLA.
