Detroit requests bankruptcy protection

[bobabode]

It'll be the bondholders.
They have more and better judges and lawyers (no offense) in their hip pockets. Pretty shitty deal considering that the older of those retirees don't even have Social Security to fall back on. The only thing they ever had was their pensions and this is it, they will be lucky to get less than bupkis.

Let them eat cake, I guess... how did that work out the last time?

[whell]

Originally Posted by bobabode

It'll be the bondholders.
They have more and better judges and lawyers (no offense) in their hip pockets. Pretty shitty deal considering that the older of those retirees don't even have Social Security to fall back on. The only thing they ever had was their pensions and this is it, they will be lucky to get less than bupkis.

Let them eat cake, I guess... how did that work out the last time?

Maybe not. Michigan has specific language in its constitution which may (or may not) supersede a bankruptcy process.

“The accrued financial benefits of each pension plan and retirement system of the state and its political subdivisions shall be a contractual obligation thereof and shall not be diminished or impaired thereby,” reads Section 24 of Article IX.

[bobabode]

Originally Posted by whell

Maybe not. Michigan has specific language in its constitution which may (or may not) supersede a bankruptcy process.

“The accrued financial benefits of each pension plan and retirement system of the state and its political subdivisions shall be a contractual obligation thereof and shall not be diminished or impaired thereby,” reads Section 24 of Article IX.

Would you be so kind as to clue in your governor? From all accounts I've read he doesn't appear to believe a contract is a contract.

[Rajoo]

Originally Posted by bobabode

Would you be so kind as to clue in your governor? From all accounts I've read he doesn't appear to believe a contract is a contract.

Not a question of what the gov. knows or thinks. Bankruptcy is Federal and employee pension protection is in the state constitution. So question then is will the Federal bankruptcy protection if granted voidsthe state constitutional guarantees. I am sure though that a lot of law suits will be filed and the attorneys will collect first.

Here is an informative article in Forbes:

www.forbes.com/sites/jeffreydorfman/2013/07/25/detroits-bankruptcy-should-be-a-warning-to-every-worker-expecting-a-pension-or-social-security/2/

[icenine]

Originally Posted by bobabode

It'll be the bondholders.
They have more and better judges and lawyers (no offense) in their hip pockets. Pretty shitty deal considering that the older of those retirees don't even have Social Security to fall back on. The only thing they ever had was their pensions and this is it, they will be lucky to get less than bupkis.

Let them eat cake, I guess... how did that work out the last time?

Yep bad deal...but are you saying the city workers did not have SSI taken out of their pay? So they could get it when they retired?