Detroit's Police and Fire Retirement System board yesterday voted to recommend that its 13,000 current and retired members vote in favor of the city's plan to adjust its debts and exit bankruptcy, Reuters reported yesterday. Last week, the city's other pension fund, the General Retirement System, took similar action, urging its 20,200 members to vote "yes" on the plan. The police and fire pension board, in an 8-3 vote, passed a resolution supporting the plan, which cuts annual cost-of-living adjustments for public safety retirees by 55 percent but does not reduce their direct pension payments. Ballots, which were sent out in May, are due back by July 11. The city is hoping that a key component of the plan dubbed the grand bargain will sway voters. The grand bargain taps $466 million pledged by philanthropic foundations and the Detroit Institute of Arts and $195 million in state funds to ease cuts to city retiree pensions and protect art works from being sold to pay city creditors.
