The group representing the largest block of Detroit's retired workers on Friday agreed to accept the city's proposed cuts to their pension benefits, the latest in a string of deals the city has struck in an effort to resolve its historic bankruptcy, Reuters reported on Friday. The board of directors for the Detroit Retired City Employees Association, which represents 8,000 retired civilian workers, voted to support the city's plan of adjustment, according to the mediators appointed by the federal bankruptcy judge overseeing the case. Under the deal, contingent on full funding of the so-called Grand Bargain to aid retired city workers, non-uniformed city retirees would accept a 4.5 percent reduction in benefits and the elimination of cost-of-living-adjustment increases to their benefits. They would also have a voice in the voluntary employee beneficiary association that is planned for managing retiree health care. Previously, the group representing retired police and firefighters agreed to back the city's adjustment plan, as had the boards for the two independent pension systems for both groups. Under their deal, public safety retirees will not have their pensions reduced, though COLAs would be cut to 1 percent.
