4.5 percent pension cuts starting for thousands of Detroit retirees affected by bankruptcy


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DETROIT — Pension cuts are kicking in for roughly 12,000 city of Detroit retirees.

The 4.5 percent reduction is a result of Detroit's bankruptcy. Pension fund spokeswoman Tina Bassett tells the Detroit Free Press (http://on.freep.com/1AjNVEi ) that about 1,450 retirees with very low incomes have qualified for financial help from a separate fund. Some people will get as much as $180.

The retirees are also losing annual cost-of-living payments. Separately, police and fire retirees will see a reduction in their cost-of-living payment but not their pension.

The city says the cuts would have been worse if not for an $816 million rescue arranged by the state, foundations and the Detroit Institute of Arts. Detroit emerged from bankruptcy in December.

Information from: Detroit Free Press, http://www.freep.com

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