New pension fund management [[maybe)

[corktownyuppie]

http://www.freep.com/article/2014033...ESS/303310151/

"According to the proposed agreements, both new boards would include five voting members with an annual stipend of $36,000 and two non-voting members and a CEO. The board members must have financial expertise and cannot be employees of the city or affiliated with any of its unions. It’s not clear who would appoint the trustees."

Contrast that to the current boards, who are ALL current or former employees and many of who receive the position as a political appointment.

Man, I'm not sure I really understand the bargaining position of the retiree committee. I'd say most everyone -- including me -- wants their pension not to be unduly harmed. But no one seems to want to answer the question, "Where will the money come from?"

Are they coming from the position that the city's plan to re-tool the city and improve services is somehow too flush?

I don't get it. If someone was offering me close to $1 Billion in cash, protecting the control of the pension fund would be the last of my concerns.

http://www.freep.com/article/2014040...-pensions-cuts

Still, Wayne State University law professor Laura Beth Bartell said the retiree strategy of holding out for something better than the DIA-pension deal and pursuing sales of DIA art poses serious dangers for pensioners.“This is a very high risk gamble,” said Bartell, who teaches bankruptcy courses. “Judge Rhodes has already indicated he does not view liquidation of city assets as the solution to the city’s financial difficulties.”
Bartell said that retirees’ rejection of the city’s proposal could undercut their stature in court.
“That’s a very difficult position to be in before the judge,” she said. “I wouldn’t want to be in that position, after rejecting $815 million and then complaining that you’re not getting enough.”