DETROIT (AP) - Trustees who oversee a Detroit pension fund have voted in favor of a 4.5 percent cut for thousands of retirees.
Trustees meeting Wednesday supported a deal reached Tuesday between negotiators and the city of Detroit. It’s part of the city’s plan to eventually emerge from bankruptcy.
The General Retirement System covers retirees outside of the police and fire departments.
Besides a pension cut, retirees will be asked to give up annual cost-of-living payments. Retirees and Detroit’s active employees who qualify for a pension will vote.
Pension fund spokeswoman Tina Bassett says it’s the “best possible deal.” Detroit says cuts are necessary because the fund is underfunded.
Police and fire retirees are covered by a different pension fund. They would see only a modest reduction in annual inflation payments.
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