City of Detroit Files for Bankruptcy Protection

[Cincinnati_Kid]

Newsflash - that's been part of the Michigan Constitution since at least the 1960s. If lawmakers don't want the state to be on the hook for pension benefits, how about they pass a law that says "municipalities can't skip pension benefits in years when the market does well". Detroit, and other communities, were able to skip pension contributions when the times were good. Now they want to skip payments when times are bad. The system can't work that way.

It will all be decided by what side of the bed the bankruptcy judge wakes up on. Orr knew Detroit was headed for bankruptcy anyway. All that postering about trying to work out a deal was nothing but window dressing. He and others actually believes federal laws will ultimately trump the state constitution that protects pensions. It really is no way around it. Sadly, pensioners are going to lose some benefits and cuts to their pension. The debt is astronomical.