DETROIT (WXYZ) - 7 Action News has learned Detroit Emergency Manager Kevyn Orr has 4 closed-door meetings today and tomorrow with both city employee pension systems and two retiree groups, uniform and non-uniform.
This is the second set of meetings with the groups offering them about 10 cents on the dollar on billions in debt the city owes them in their retirement health care and pensions.
The emergency manager has stated in his financial reports that the pension underfunding is $3.5 billion and other post retirement benefits (health care) is underfunded by $5.7 billion dollars.
Retirees have already been told they will have to move to Medicare and the new federal government system called the Patient Protection and Affordable Care Act, also known as "Obamacare."
They will also see their pension checks reduced - but the amount is not known.
The meetings will be as groups, but a small conference room is nearby for both sides to "caucus" in private if needed to discuss specific proposals.
Emergency Manager Kevyn Orr has said Detroit faces an $18 billion dollar deficit and if all creditors do no agree to concessions, Orr may be forced to go into Chapter 9 Bankruptcy within a couple of weeks.
bout two dozen Wall Street creditors are also in town in meetings with the Emergency Manager. A bus tour of Detroit for them was canceled on Tuesday afternoon when they told Orr they wanted to crunch the numbers but also not be on TV with the highly publicized tour.
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