April 15 Detroit reached a deal with a group
representing police and fire retirees over the treatment of
pensions and health care benefits, U.S. Bankruptcy Court
mediators announced on Tuesday.
Under the deal, police and fire retired worker pensions
would not be decreased, but cost-of-living increases would be
cut in half, according to a court statement. It added that a
separate voluntary employee beneficiary association plan or VEBA
will be established for retiree health care.
The deal, which is contingent on more than $800 million in
contributions for retirees from foundations, the Detroit
Institute of Arts and the state of Michigan, marks the first
between the bankrupt city and one of its retired worker groups,
the Retired Detroit Police and Fire Fighters Association, which
has about 6,500 members, the statement said.
(Reporting by Karen Pierog; Editing by James Dalgleish)