Catherwood LibraryILR School

The City of Detroit has reached a deal with its police and firefighter retirees over their retirement benefits as a part of the city?s bankruptcy proceedings. The deal with the Retired Detroit Police and Fire Fighters Association, the group that represents the 6,500 retirees, existing pension payments would remain the same, but annual cost-of-living increases would only be 50% of what had been stated previously. Additionally, a voluntary plan will be made available to retirees who wish to purchase healthcare. The deal is contingent on contributions exceeding $800 million by the Detroit Institute of Arts and the state of Michigan. The deal is a good sign in the eyes of creditors and the city alike not only because it shows hope for future deals and ultimately resolution of the city?s bankruptcy, but also because it means that lawsuits aimed at overturning the ruling that Detroit was eligible for bankruptcy are more likely to get dropped.