Detroit and its retirees begin a court fight this week over how much the city can cut its pension and health care benefits as it seeks to discharge $19 billion in debt.
The New York Times: Cries Of Betrayal As Detroit Plans To Cut Pensions
Gloria Killebrew, 73, worked for the City of Detroit for 22 years and now spends her days caring for her husband, J. D., who has had three heart attacks and multiple kidney operations, the last of which left him needing dialysis three times a week at the Henry Ford Medical Center in Dearborn, Mich. Now there is a new worry: Detroit wants to cut the pensions it pays retirees like Ms. Killebrew, who now receives about $1,900 a month (Yaccino and Cooper, 7/21).
The Washington Post: After Detroit Bankruptcy Filing, City Retirees On Edge As They Face Pension Cuts
The battle over the future of Detroit is set to begin this week in federal court, where government leaders will square off against retirees in a colossal debate over what the city owes to a prior generation of residents as it tries to rebuild for the next. … Orr has promised that retired city workers, police officers and firefighters will not see pensions or health benefits reduced for at least six months. But on Sunday, he said those retirement benefits will have to be cut down the road (Goldfarb, 7/21).