Detroit is closer to figuring out how to address a hole in pension funding that is far larger than it had anticipated when it exited from bankruptcy, the Detroit Free Press reported yesterday. In March, the city requested proposals from national firms with expertise in public pension plans to advise the city on how best to address a $195-million payment to the city's two pension plans that comes due in 2024, under terms of the city's exit from the nation's largest chapter 9 municipal bankruptcy. John Naglick, the city's deputy chief financial officer and finance director, said that a committee of top officials in the Duggan administration reduced a pool of proposals to three and recently recommended one firm to the city's CFO, who approved the suggestion. Naglick didn't name the firm, saying that it would be revealed later this month when a contract is presented to the city council. It's the next step in addressing what's become a significant risk to the city's recovery from insolvency.
