Emergency manager issues pension freeze: more possible fraud
(WXYZ) - Detroit Emergency Manager Kevyn Orr wants to freeze the General Retirement Pension System on December 31, 2013 to shut out any new retirees.
They would instead go into a plan similar to a 401k (see below).
Also, Orr today released results of an investigation done by the Auditor General and Inspector General into the pension systems and payroll (see below).
The investigation found that in almost 1500 claims for unemployment during a 2 year period, one third of the payouts are questionable and 192 are probable fraud.
The Emergency Manager is also ordering members of the two pension boards to turn over their financial documents by October 11. View the order here: http://www.detroitmi.gov/Portals/0/docs/EM/Order%2016.pdf
The freeze will be challenged in bankruptcy court according to AFSCME President Al Garrett.
WATCH THE FULL STORY IN THE VIDEO PLAYER ABOVE.
Emergency manager order