Quote Originally Posted by Ray1936 View Post
Section 24, Constitution of the State of Michigan: "The accrued financial benefits of each pension plan and retirement system of the state and its political subdivisions shall be a contractural obligation thereof which shall not be diminished or impaired thereby."

Strikes me that if Detroit can't fund the pension systems, it becomes a state obligation. But I'm sure that will be in the courts, too.
There's a lot of legalese in this salad.

Accrued... so its only accrued benefits -- not anything granted -- just accrued.

Contractual Obligation -- so its equivalent to a contractual obligation -- don't those get altered in bankruptcy?

Not diminised or impaired thereby -- what? Thereby what? So maybe the State can't alter the contract -- but maybe the federal judge can -- because he's not part of the State Constitution.

Brace yourselves while the brigade of lawyers fight this out. And remember retirees, as lawyers make more money -- there'll be less to pay you with. You better hope that bankruptcy judge sees it your way. Otherwise Orr might've been a better bet.