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View Diary: Detroit bankruptcy on hold, Snyder admin. smacked down by judge for "cheating good people who work" (267 comments)

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  •  There appears to be ~20K retirees and there not... (4+ / 0-)
    Recommended by:
    sfbob, Eclectablog, Amber6541, Aquarius40

    covered by SS (unless from another job). The average cop/firefighter pension is $28K. Googled the mess and found this NYT link:

    http://dealbook.nytimes.com/...

    Until mid-June, there was one ray of hope in Detroit’s gathering storm: For all the city’s problems, its pension fund was in pretty good shape. If the city went under, its thousands of retired clerks, police officers, bus drivers and other workers would still be safe.

    Then came bad news. Seemingly out of nowhere, a $3.5 billion hole appeared in Detroit’s pension system, courtesy of calculations by a firm hired by the city’s emergency manager.

    The article goes on to say the problem has to do with the projected rate of return on investment was ~7%/year and that had to be lowered so all of sudden Motown pension funds went in the red. And it's a countrywide problem.

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