Bankruptcy Balloting: As voting begins, what do cuts mean for pensioners?

Bankruptcy Balloting: As voting begins, what do cuts mean for pensioners?

May 12 is the deadline for ballots to be mailed to the city’s roughly 67,000 creditors, including some 32,000 current and former employees who will received customized ballots that describe what the bankruptcy settlement means to them.

Bankruptcy Judge Steven Rhodes has been adamant that “plain language” and effective explanations are included in the voting packets for current and former employees who will vote on the changes to both pensions and health care benefits. The Detroit News reports about just how unique this step has been:

It’s an unprecedented undertaking in a federal bankruptcy — corporate or municipal — to provide customized voting ballots for creditors, but necessary to avoid mathematical confusion, said Carole Neville, an attorney representing the Official Committee of Retirees. “I’ve never seen anything like this before,” Neville said.

The News article details what the cuts mean to pensioners and what uncertainties remain. Creditors have two months to consider the proposal before they return the ballots.