DETROIT (AP) - Detroit retirees will be allowed to repay generous annuity returns with a lump sum in the city’s bankruptcy case.
A single payment could be cheaper than stretching it over time.
The city is proposing to recover as much as 20 percent of the money paid between 2003 and 2013. Emergency manager Kevyn Orr says guaranteed annuity returns paid during that time put stress on the pension system.
Detroit plans to recoup the money as part of its plan to get out of bankruptcy. But under a deal announced Monday, retirees can pay it off with a single payment.
Everything is contingent on a broader bankruptcy strategy being approved by retirees and current employees. The deadline to vote is July 11.
Copyright © 2021 The Washington Times, LLC.