Rod Meloni: Detroit, retirees agree on insurance settlement

By Rod Meloni - Reporter, CFP ®

DETROIT - In a faint sign there is a thaw between the City of Detroit and its retiree committee, they announced in open court on Tuesday that they have agreed today on an insurance settlement.

The retiree committee is a group of largely retired Detroiters overseeing the rights of the city's pensioners rights in the city's bankruptcy.

The committee was set up at the city's request and has played a fairly prominent role in the bankruptcy case.

The committee members are concerned they could be held personally liable, in other words a target for lawsuits, for decisions they make as part of the bankruptcy case. The policy was for a total of $602,000, but the one year cost is just over half of that amount. The fact that the city agreed to pay some or much of this expense shows the relationship between these two opposing forces is a first -- and somewhat encouraging development that they can come to terms on something.

We expect a full filing of the terms of the agreement soon.

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