As a follow up to yesterday’s story on the City of Worcester’s unfunded pension liability.
Here is the latest from the Detroit News. The city’s largest retiree group, retired city employees (8000), agreed to a cut of 4.5 percent in their pension and gave up cost-of-living adjustments! COLA may be reinstated if the city’s fiscal health improves, but that does not look likely. A deal with the four public safety unions may also be imminent.
This all stems from US Bankruptcy Judge Steven Rhodes decision in December that pensions may be cut in bankruptcy court contrary to the state constitution. There are sure to be more of these coming as the unfunded liabilities increase.