20 06, 2014

Detroit Rolls Out New Model: A Hybrid Pension Plan

2014-06-20T16:31:06-07:00June 20th, 2014|Categories: Retirement|Tags: , |

In the face of Detroit’s tumultuous bankruptcy proceedings, in which multiple parties are quarreling to protect their interests, the city and its unions have quietly negotiated a scaled-back pension plan that could serve as a model for other troubled governments. One of the most closely watched issues of the case is whether a government pension plan can be legally cut in bankruptcy. Detroit, saddled with a pension system it cannot afford, has introduced a new plan with the cooperation [...]

19 05, 2014

Cuts to Detroit Pensions Set Dangerous Precedent

2014-05-19T16:41:47-07:00May 19th, 2014|Categories: Pension Funding|Tags: , , , |

Detroit’s bankruptcy, the largest municipal case in U.S. history, has attracted wide media commentary as an example of the country’s “unsustainable” public pension obligations. But it’s time to train a magnifying glass on the substance of the bankruptcy itself, particularly with regard to how it will affect workers and their retirements — in Detroit and around the country. Traditional legal interpretations of pensions have viewed their obligations as sacrosanct, especially once the passage of the Employee Retirement Income Security Act of [...]

17 04, 2014

Detroit reaches deal with retired police and firefighters

2014-04-17T18:10:19-07:00April 17th, 2014|Categories: Defined Benefit Plans|Tags: , , |

If approved, the deal would significantly limit proposed cuts in pension benefits for the public safety retirees. Bankruptcy mediators said the agreement with the Retired Detroit Police and Fire Fighters Association was the first the city had reached with any group representing its retirees. The association has about 6,500 members and represents more than 80% of Detroit’s retired public safety workers. […]

10 02, 2014

General Motors expects to contribute $849 million to pension funds in 2014

2014-02-10T18:10:23-08:00February 10th, 2014|Categories: Retirement|Tags: , , |

General Motors Co., Detroit, announced Thursday it plans to contribute $100 million to its frozen U.S. defined benefit pension plans and $749 million to its non-U.S. defined benefit pension plans in 2014. The company also announced in the annual report filing that it completed an investment policy study for the U.S. pension funds. As a result, the U.S. plans’ target to fixed income was reduced to 58% from 60% and its target to private equity, real estate, hedge funds [...]

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