Relying on results tabulated a few days before the deadline, sources told the Detroit Free Press newspaper that the city’s pensioners appear to have voted in favor of the city’s bankruptcy restructuring plan that calls for cuts to their pension payments.
Police and fire pensioners appeared to have accepted the deal by a wide margin, and while the vote was closer with civilian retirees, only an unexpected last-minute surge of “no” votes would derail the plan, according to people familiar with the voting results.
Still, many ballots were mailed in the final days of the two-month voting period. Those votes, due to a California company by 5 p.m. Friday, could change the result. The city will report the final results to the bankruptcy court on or before Monday, July 21.
A favorable vote from pensioners mean the “grand bargain” funding would become available to the city’s two pension funds. If the pensioners vote in favor of the plan — which calls for 4.5 percent cuts to non-uniform retires and lower cost-of-living increases for the police and fire pensioners, among other terms – then $195 million of state money, $366 million from private foundations and $100 million the Detroit Institute of Arts would raise is contributed to the pension funds.
Other terms include pensioners waiving their rights to litigate certain issues related to bankruptcy.