Finance

How Bankruptcy Could Affect Detroit Pensions, Health Care

Questions about Detroit emergency manager Kevyn Orr’s plan to pursue “significant” cuts to pensions and to reduce the city’s spending on retiree health care were front-and-center at a meeting Thursday morning between Orr’s advisers and city union leaders.
June 21, 2013

Questions about Detroit emergency manager Kevyn Orr’s plan to pursue “significant” cuts to pensions and to reduce the city’s spending on retiree health care were front-and-center at a meeting Thursday morning between Orr’s advisers and city union leaders.

Orr says he believes he would have the legal grounding to slash pensions if the city files for Chapter 9 bankruptcy, while unions say they believe the Michigan Constitution will shield pensions from cuts.

Meanwhile, Orr is also targeting major changes for retiree health care, another fertile ground for a legal battle.

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