(WXYZ) - Sources inside closed-door mediation tell 7 Action News two major players in Detroit's Bankruptcy case have just reached tentative agreements.
Negotiators for the General Retirement System and the Police and Fire Retirement System have deals they will be taking to their pension system trustees for ratification.
According to these sources, the General Retirement System settled for a 4.5% cut on pensions, down from 26%.
The non-uniform retirees will not get any cost of living adjustments on pensions.
Earlier on Tuesday, a deal reached with the Retired Detroit Police and Firefighters Association, a group of 6500 uniform retirees, resulted in no pension reductions and a 1% cost of living adjustment annually. The Police and Fire Pension fund is in better financial shape.
The increased money for pensions is coming from the bull market on Wall Street, making both pensions funds healthier. These pension deals are also made possible by the plan that provides $816 million from foundations and the state to protect the art at the DIA from being sold.
Read the official statement from the Boards of General Retirement System of the City of Detroit and the Police and Fire Retirement System of the City of Detroit:
These “tentative settlements” tonight are the result of months of hard work and good faith negotiations among the restructuring teams of both Boards of Trustees to reach a tentative consensual deal for consideration by the respective Boards and our active members and retirees.
The tentative accords reached this evening must still be reviewed by the Boards of Trustees for both the General Retirement System and Police and Fire Retirement system for concurrence. The proposed settlements will ultimately be decided on by current employees and retirees who are eligible to cast a ballot in the bankruptcy process to accept or reject the settlement offer.
The restructuring teams for the pension systems and the City of Detroit will remain in negotiations for the next several days until all details, terms and final language can be resolved. The tentative settlement on major financial issues has been agreed to in principal and many details remain to be resolved in further negotiation.
The two pension funds represent some 23,000 active and retiree members in the City of Detroit.
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