Tag Archives: Chapter 9

Detroit Bankruptcy Likely To Rob Retirees of Pension Benefits

The bankruptcy of Detroit could have devastating consequences for thousands of retired city workers who depend on their pensions for food and shelter. After years of speculation the city filed last week under the rarely-used Chapter 9 of the federal bankruptcy code governing municipal insolvency. The city owes $18.5 billion in debt, of which $3.5 billion is an unfunded pension liability. As part of the bankruptcy process officials hope to enact significant cuts to the benefits of 21,000 retired public …

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