The city's balloon payment due in 2024 for its two pension funds has risen to $195 million, or about 71 percent above the original $114 million projected under the city’s bankruptcy exit plan approved by a federal judge last year, the Detroit Free Press reported today. The unexpected jump could challenge funding behind the city's financial road map approved as part of the nation's largest municipal bankruptcy. Actuaries for the city's two pensions funds say that the lower estimate used in the bankruptcy plan was based on outdated information, including projections that didn't allow for the longer life expectancy of retirees or that the city would be hiring new employees after filing for bankruptcy who would need to become part of the pension system.
