Aug 8, 2022 - News

Pension battle rages

Annalise Frank

Mayor Mike Duggan speaks to press at an event. — 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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Pension battle rages

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