Pension Deal Would Help Detroit Climb Out Of Bankruptcy

The city has reached a tentative agreement with retired police officers and firefighters to preserve their pensions. Pensions of other city retirees would take a 4.5 percent hit.

Copyright © 2014 NPR. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.

KELLY MCEVERS, HOST:

NPR's business news starts with Detroit cutting a deal.

(SOUNDBITE OF MUSIC)

MCEVERS: After days of intense negotiations, the city has reached tentative agreements with retired police officers and firefighters to preserve their pensions. Pensions of other city retirees would take a hit of 4.5 percent. They were facing a 26 percent cut.

Thousands of active and retired workers will soon vote on the plan and it'll be reviewed by a federal judge. The deal is part of a major effort by the city to emerge from bankruptcy by this fall. Last year, citing a debt of $18 billion, Detroit filed for the largest public bankruptcy in U.S. history.

Copyright © 2014 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.

Support comes from: