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Wed Dec 4, 2013, 08:54 AM

Your pensions are not safe - Detroit Ruling on Bankruptcy Lifts Pension Protections

DETROIT — In a ruling that could reverberate far beyond Detroit, a federal judge held on Tuesday that this battered city could formally enter bankruptcy and asserted that Detroit’s obligation to pay pensions in full was not untouchable.

The judge, Steven W. Rhodes, dealt a major blow to the widely held belief that state laws preserve public pensions, and his ruling is likely to resonate in Chicago, Los Angeles, Philadelphia and many other American cities where the rising cost of pensions has been crowding out spending for public schools, police departments and other services.

The judge made it clear that public employee pensions were not protected in a federal Chapter 9 bankruptcy, even though the Michigan Constitution expressly protects them. “Pension benefits are a contractual right and are not entitled to any heightened protection in a municipal bankruptcy,” he said.

James E. Spiotto, a lawyer with the firm Chapman & Cutler in Chicago who specializes in municipal bankruptcy and was not involved in the case, said: “No bankruptcy court had ruled that before. It will be instructive.”

http://www.nytimes.com/2013/12/04/us/detroit-bankruptcy-ruling.html?nl=todaysheadlines&emc=edit_th_20131204&_r=0

Setting it up to pull the rug out from under peoples retirement!

5 replies, 672 views

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Reply Your pensions are not safe - Detroit Ruling on Bankruptcy Lifts Pension Protections (Original post)
liberal N proud Dec 2013 OP
abelenkpe Dec 2013 #1
raccoon Dec 2013 #2
Holly_Hobby Dec 2013 #3
closeupready Dec 2013 #4
WinkyDink Dec 2013 #5

Response to liberal N proud (Original post)

Wed Dec 4, 2013, 09:00 AM

1. K&R

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Response to liberal N proud (Original post)

Wed Dec 4, 2013, 12:23 PM

2. Don't I know it. I posted about this earlier.

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Response to liberal N proud (Original post)

Wed Dec 4, 2013, 12:47 PM

3. If anyone/anything needs a federal bailout,

retirement funds are IT. Can anyone think of a reason why the feds can't fund this?

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Response to liberal N proud (Original post)

Wed Dec 4, 2013, 12:50 PM

4. If anything is bankruptcy abuse, this is.

There should be a federal law changing the rules to disallow discharging pensions, and I guarantee you, Hillary will not support such a change - not a chance. K&R

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Response to liberal N proud (Original post)

Wed Dec 4, 2013, 12:53 PM

5. My mother, a Bethlehem Steel widow, is fully aware of this. PBGC was her rip-off company. My

pension, as is my husband's, is a state one funded by teachers' contributions as well as public funding. And it's a HUGE CONTROVERSY IN PA, now that we have a corrupt Republican greed-head Governor who would sell off the entire state if he could.

http://www.pbgc.gov/

If this law is upheld, and teachers, police, civil employees, all lose their pensions, there WILL be a revolution. Public education will end. Period. NOBODY would enter the profession with zero pension to look forward to!!

But then, evil men DO want to end public education. Even government.

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