WASHINGTON — After months of negotiating and seeing the city of Detroit flounder financially, the public workers union for retirees reached an agreement with the city officials led by emergency manager Kevyn Orr.
The city’s $18 billion debt was eased by the deal, which was helped after the city received court approval on a settlement of interest rate swaps and agreements with bond insurance companies over their general obligation bonds.
The pensions for retired police and fire workers will not go down, according to the new deal, but the cost-of-living increases in the plans will be cut in half. A separate plan will be established for retiree’s healthcare. This will cover the 6,500 members of the union.