News Summary
Detroit retirees will soon receive a one-time supplemental payment, known as a ’13th check,’ as approved by the U.S. Bankruptcy Court. This payment, estimated at around $650 for Police and Fire Retirement System members and approximately $466 for General Retirement System retirees, marks the first financial relief since their benefits were cut during the city’s bankruptcy. With a plan to allocate $10 million evenly between retirement systems, this initiative aims to support those affected by past financial hardships.
Welcome News for Detroit Retirees: A 13th Check Is Coming!
In a delightful turn of events for the retired residents of Detroit, the city’s retirement systems are gearing up to issue a one-time supplemental payment, commonly referred to as a “13th check,” by May 1. This generous gesture marks the first real financial relief for retirees since their pension benefits were reduced during the tumultuous times of Detroit’s bankruptcy process.
U.S. Bankruptcy Court Approves Payment!
The excitement is building as the U.S. Bankruptcy Court gave the green light for this supplemental payment just last Thursday, as part of a revision to the city’s plan of adjustment. It’s wonderful news for those who have been waiting patiently for relief. For members of the Police and Fire Retirement System (PFRS), the estimated payout will hover around $650. Meanwhile, retirees from the General Retirement System (GRS) can expect to see approximately $466 hitting their accounts.
These estimations rely on data collected back on June 30, 2014, which indicated there were about 10,713 GRS retirees and beneficiaries and 7,647 PFRS retirees and beneficiaries. However, it’s worth noting that the final payment amounts might shift slightly depending on the number of living retirees as of April 1, 2015, just one month before the payments roll out.
How Are Retirees Affected?
The GRS boasts around 11,000 retired members and an additional 5,000 active employees, while the PFRS serves an impressive roster of roughly 8,000 retired first responders and about 3,000 active-duty personnel. Mayor Mike Duggan has proposed a sound financing plan, suggesting a $10 million allocation to be split evenly between both retirement systems, which shows a commitment to care for those who served the city.
To ensure smooth sailing, Jeffrey Pegg, the Chair of the PFRS, has emphasized the plan to make accurate calculations and promise quick direct deposits for retirees. Funds are expected to be wired to the retirement systems shortly, and retirees are getting more than just a long-awaited boost – they’re getting a lifeline amid rising costs of living.
A Look Back at the Financial Situation
Detroit’s bankruptcy saga left the city grappling with a staggering $18.3 billion debt. A significant chunk of this debt is tied to unpaid pension and healthcare benefits. Originally, there had been proposals for a dramatic 40% cut to pensions, but after negotiations with various stakeholders, those cuts were softened. Most of the city’s retirees reported challenging hardships as a result of earlier pension reductions, stating that they often struggled to find jobs that would adequately meet their healthcare needs before reaching Medicare eligibility.
13th Check: A Bit of Brightness in the Shadows
Historically, “13th checks” were known as bonuses granted when pension funds had a little extra dough to go around, but this trend was curbed under the bankruptcy plan to protect the long-term viability of the funds. The exciting news is that this upcoming wave of checks is designed to cushion the blow of past cuts rather than being seen as annual gifts, as clarified by the Labor Relations Director.
Looking Ahead: Signs of Hope for the Future
Looking forward, Mayor Duggan is also voicing plans for future supplemental payments, hinting at a budgeted $10 million for retirees in 2025. While the path to recovery has been tough, there’s hope as retirees express ongoing concerns about restoring benefits after the cuts. Recent task force meetings highlighted the frustrations and worries among this community, signaling a desire for the city to actively invest in restoring what was lost.
As the financial situation improves post-bankruptcy, we can foresee a brighter future with potential supplemental payments on the horizon thanks to the city’s promising track record of achieving 11 consecutive budget surpluses. The city’s commitment to fully fund these extra payments — without impacting retirement system resources — is a heartening step towards righting wrongs and reassuring its dedicated retirees.
For now, a wave of relief washes over the hardworking retirees of Detroit as they await their well-deserved 13th check and the promise of a better tomorrow.
Deeper Dive: News & Info About This Topic
HERE Resources
Detroit Retirees Set to Receive 13th Check by May 1
Additional Resources
- Detroit Free Press: Extra Check for Retirees
- Detroit News: Bonus Payments for Retirees
- Detroit News: Embezzlement Charges
- DBusiness: New Pension Investment Officer
- AP News: Detroit Bankruptcy and Pensions
