Police-Fire Pension Board supports “yes” vote on Plan of Adjustment

Police-Fire Pension Board supports “yes” vote on Plan of Adjustment

Following the week-old, similar decision of the General Retirement System board, the Detroit Police and Fire Retirement System board also voted to urge its 13,000 members to vote in favor of the city’s bankruptcy plan, Reuters reported.

The city’s plan, which will be the focus of the August trial, does not cut public safety workers’ wages but does reduce cost of living increases.  The union representing police officers is urging its members to reject the plan, arguing it ultimately takes money away from Detroit cops who already make abysmally-low salaries.

The pension board voted 8-3 to promote a “yes” vote on the plan.

In order for the $660 million in “Grand Bargain” money to be contributed to the pension funds, both classes of pensioners must vote in favor of the city’s plan. Part of the Grand Bargain terms also protect the Detroit Institute of Arts collection from sale and implement some oversight provision for the city and pension funds.