Detroit Bankruptcy Decision Puts Pensions At Risk - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Detroit Bankruptcy Decision Puts Pensions At Risk

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DETROIT (AP) - Detroit retirees could see smaller pension checks after a judge said pensions are a fair target in the city's historic bankruptcy.

Judge Steven Rhodes says pensions are like contracts and aren't immune to being changed in a public bankruptcy. It was probably the most controversial decision Tuesday in a broader ruling that allows Detroit to come up with a plan to cure $18 billion in debt.

Reaction is harsh. Retiree David Sole predicts people could lose homes and be forced into soup lines. While Detroit says pension funds are underfunded by $3.5 billion, there's been no specific proposal to reduce pensions. That's caused much anxiety in the 4-month-old case.

Detroit emergency manager Kevyn Orr is promising to be "thoughtful, measured and humane" with retirees.

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