This report, linked in today's Free Press [[http://www.freep.com/assets/freep/pdf/C4210424816.PDF) lays out the baseline scenario and what I'd guess the City is thinking the ultimate resolution of pension issues will be:
A freeze on the plan [[no more contributions, benefits do not increase);
No COLAs for retirees;
A 10% defined-contribution plan.
The status quo, assuming a 6.57% return, will require the City to pay between $190M and $240M per year into the DPFRS to keep it afloat. For the DGRS, it's between $190M and $315M. That could be as high as $565M per year, just to stay afloat.
The freeze plan saves the City over $180M/year.
It is unlikely that the Court will find that Detroit is not insolvent, given this information.
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