Deal reached between city & Retired Detroit Police and Firefighters Association, no pension cuts

DETROIT (WXYZ) - The City of Detroit and a group of retirees have a reached a deal regarding pensions and health care cuts in bankruptcy. 

The deal was unanimously ratified by the 11 member Board of Trustees of the Retired Detroit Police and Firefighters Association. 

The terms of the deal include no cuts in pensions and a 1% cost of living adjustment on pensions. 

That is about half of what COLA had been and it could be restored in the future. 

The deal also calls for separating health care for uniform and non-union retirees next year under that will be operated under a VEBA or Voluntary Employee Beneficiary Association.

The deal was made possible with new numbers showing a 14% return in the Police and Fire Pension System, because of the bull market on Wall Street. 

It is also tied to the plan that puts $816 million toward pensions while saving art at the DIA from possible sale.

“This is another significant step forward as we work towards securing Detroit’s long-term financial viability.  I thank the Retired Detroit Police and Fire Fighters Association for its willingness to compromise, and I encourage all other parties to reach resolutions with the City in a timely fashion.  We are securing support for the Plan of Adjustment – the time to resolve our differences is now,” said Detroit Emergency Financial Manager Kevyn Orr in a statement. 

The RDPFFA represents 6500 retirees or about 80% of all Detroit Police and Fire retirees. 

The association will now support Detroit's Plan of Adjustment and give up the claim to 6th Circuit Court of Appeals that public employee pensions could not be cut under the Michigan Constitution. 

Other key bargaining groups including the two Detroit Pension Systems and the official retiree committee appointed by the bankruptcy court have not agreed to terms in Mediation. 

Those talks are continuing behind closed doors today. 



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