- Associated Press - Tuesday, May 13, 2014

DETROIT (AP) - Michigan’s attorney general says he may not oppose cuts in pensions for city of Detroit retirees.

Bill Schuette has said for months that pension cuts in Detroit’s bankruptcy would violate the Michigan Constitution. But in a court filing Monday, he says he probably would drop a legal challenge if retirees vote in favor of smaller benefits. Ballots are going out this week and must be returned by July 11.

Schuette says he may revive the challenge if the pension plan is rejected.

Police and fire retirees would see smaller cost-of-living adjustments, while general retirees would get a 4.5 percent pension cut and no annual cost-of-living payments. They also would surrender some annuity payments.

Detroit’s two pension funds and many retiree groups are supporting the plan.

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