Mayor Mike Duggan. Photo courtesy of city of Detroit via Flickr
Mayor Mike Duggan's administration is suing a pension board over how much time the city has to pay off a huge debt.
- Detroit needs to start making payments next year on old pension debt after it got a decadelong break from doing so during bankruptcy, a massive financial lift for the city.
What's happening: The Police Fire Retirement System "stands resolute" on its decision to adopt a 20-year payment schedule instead of the 30-year one the city is seeking, it said in a news release.
- The system contends paying the debt off quickly is best for the fund's health and thus keeps retirees' pensions safer.
Why it matters: This disagreement could drastically impact the city's finances — and thus how much it can spend on resident services — or potentially hurt the pension fund retirees rely on.
The latest: Duggan pledged back in March to sue over this, and the city filed a motion last week in bankruptcy court asking a judge to force the change.
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