Flint, Mich., Emergency Manager Darnell Earley said that a lawsuit filed by retirees could force the city into bankruptcy and put pensions and health benefits at risk of cuts, MLive.com reported on Friday. The claim is part of an op-ed Earley sent The Flint Journal following a Jan. 3 decision by the U.S. Sixth Circuit Court of Appeals to reinstate an injunction that prohibits the city from modifying health care for city retirees until a federal lawsuit is decided. Six retirees and the Flint-based United Retired Governmental Employees association filed a lawsuit against the city following a decision in April 2012 by then-emergency manager Michael Brown that would make retirees pay more out of pocket for health coverage. Earley said that reinstating historic health care levels for retirees would cost the city an additional $5 million annually and force the city's unfunded liability for retiree health care to increase to as much as $900,000,000. A bankruptcy proceeding could severely reduce or eliminate health care coverage for retirees and lead to possible pension cuts, Earley said.
