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Detroit’s Reduced “Hybrid” Pension Plans Could Become Model for Cash Strapped States

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Detroit’s pension crisis may be at the beginning of a resolution now that unions have approved a reduced plan. If  all goes well, this plan could serve as a model for cash strapped states that can no long afford pensions.

“The city and its labor partners have come up with what we think is the best option to strengthen employee pensions so we can continue to meet future obligations in a financially responsible and sustainable manner,” emergency manager Kevyn Orr said in a statement, according to the Detroit Free Press. “This new pension plan is the result of months of intense negotiation between the city, its unions and its retirees.”

The plan requires Detroit workers to contribute anywhere from four to eight percent of their base pay toward pensions, an amount that will be matched by the city.

From DealBook:

READ MORE via Detroit’s Reduced “Hybrid” Pension Plans Could Become Model for Cash Strapped States | breakingbrown.com.

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