RDPMA VOWS To APPEAL | Appeals Court Rejects Challenge To Detroit Bankruptcy Pension Cuts
Appeals court rejects challenge to Detroit bankruptcy pension cuts
Detroit — A federal appeals court has ruled in favor of Detroit in a lawsuit by city retirees whose pensions were cut in a plan to get the city out of bankruptcy in 2014.Some retirees sued, saying they deserve the pension that was promised before the city filed for bankruptcy in 2013. But in a 2-1 decision Monday, Judge Alice Batchelder of the 6th Circuit Court of Appeals said it’s “not a close call.”The court says Detroit’s emergence from bankruptcy in 2014 was the result of a series of major settlements between the city and creditors and must not be disturbed. Thousands of retirees saw their pensions cut by 4.5 percent.Altering the pension cuts, the judges said, would be a “drastic action” that “would unavoidably unravel the entire plan, likely force the city back into emergency oversight and require a wholesale recreation of the vast and complex web of negotiated settlements and agreements.”
Posted by admin on Tuesday, October 4th, 2016 @ 3:33PM
Categories: Attorneys, Detroit, Detroit Bankruptcy, Penions