Judge Rhodes Rules Detroit Is Eligible For Bankruptcy

[Ray1936]

Free Press listed a series of interesting scenarios:

■ Orr might shield the city’s oldest and poorest retirees and cut deeper into the pensions of younger, somewhat better off retirees.
■ He might impose the cuts equally across the board but phase them in over a number of years, in effect offering a measure of protection for older retirees.
■ He might cap pension payments at some basic amount, requiring cuts only to those getting the biggest retirement checks.
■ Orr could leave pensions for current retirees relatively intact but impose deeper cuts on the active workers who remain years short of retirement age.
■ He might impose smaller cuts on the city’s retired police and firelighters because their pension fund, the Police & Fire Retirement System, is in somewhat better shape than the General Retirement System fund for the city’s non-uniformed retirees.

Logical possibilities. Meanwhile, Danny, go away. You're not funny.

[corktownyuppie]

Free Press listed a series of interesting scenarios...Logical possibilities. Meanwhile, Danny, go away.

So logical, in fact, it has me wonder why it took all these years, a bankruptcy filing, and then a judge's ruling before getting it done.

[BankruptcyGuy]

Free Press listed a series of interesting scenarios:

■ Orr might shield the city’s oldest and poorest retirees and cut deeper into the pensions of younger, somewhat better off retirees.
■ He might impose the cuts equally across the board but phase them in over a number of years, in effect offering a measure of protection for older retirees.
■ He might cap pension payments at some basic amount, requiring cuts only to those getting the biggest retirement checks.
■ Orr could leave pensions for current retirees relatively intact but impose deeper cuts on the active workers who remain years short of retirement age.
■ He might impose smaller cuts on the city’s retired police and firelighters because their pension fund, the Police & Fire Retirement System, is in somewhat better shape than the General Retirement System fund for the city’s non-uniformed retirees.

Logical possibilities. Meanwhile, Danny, go away. You're not funny.

You never know, but I think the Freep is looking at this the wrong way. The amount at issue is the unfunded portion. The City will pay x% of the unfunded portion. I don't know how much the City will have to say about how the shortfall is distributed.

At this point, I'd like to add the following editorial comment: "Gee, maybe the pensioner's attorneys should have thought of this before they argued that the pensions were actually fully funded." Again, a stupid argument that will now hurt their bargaining position.