Detroit council OKs pension freeze, nixes pay cut
Posted: 01/16/2013
DETROIT (AP) - The Detroit City Council has given partial approval to municipal employee compensation cuts that Mayor Dave Bing is seeking to help close the $327 million budget deficit and stave off a state financial takeover.
Council on Wednesday passed a one-year freeze in pension benefits that Bing says will save $25 million. It means that employees won't earn pension credits for 12 months beginning Feb. 1.
But the council rejected Bing's request for a 20 percent wage reduction for non-union employees projected to save about $3 million over a year.
Instead, the council scheduled a Jan. 25 hearing on a 10 percent wage cut that would be accomplished through furlough days.
A state review team is considering whether to recommend appointment of an emergency financial manager.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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