Pension suspended for some Detroit city workers

By losing 1 year of pension credits, employees are expected to see reduction in checks when they retire


DETROIT – The Detroit City Council has approved a one-year suspension in payments to pension funds covering mayoral and council employees.

The plan is part of a wave of cost cutting measures designed to prevent the appointment of an emergency financial manager.

By losing one year of pension credits, the employees are expected to see a reduction in their pension checks when they retire.

The change begins in February.

The plan would save an estimated 25-million dollars a year, but only if unionized workers agree to be part of it.

The council decided to delay a vote on Mayor Bing's request for a twenty per cent pay cut through furloughs.

Workers would stay home one day per week without pay.

Council members say the cut is too extreme, since those workers have already been given a ten per cent reduction in pay.

A public hearing on an alternate furlough plan will be held Jan. 25.

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