Results 11 to 20 of 31
Thread Information
Users Browsing this Thread
There are currently 1 users browsing this thread. (0 members and 1 guests)
-
07-20-2013, 12:23 AM #11
Detroit bankruptcy fuels wider battle over pensions
Detroit bankruptcy fuels wider battle over pensions
Detroit's bankruptcy filing, along with two in California, enters into unchartered legal territory in the battle between public pension funds and financially ailing governments.
Detroit's bankruptcy filing raises legal questions for which there is no precedent, analysts say. (Paul Sancya, Associated Press / July 27, 2011)
By Richard Simon and Abby SewellJuly 19, 2013, 6:38 p.m.
WASHINGTON — Detroit's historic bankruptcy filing — already thrown into turmoil by a Michigan court Friday — has ignited a largely uncharted legal front in the closely watched battle between public employee unions and governments across the country struggling to meet costly pension obligations.
In Detroit, city pension funds sued Republican Gov. Rick Snyder and the city's emergency manager, saying they could not use bankruptcy to reduce the pensions of about 30,000 current and retired workers to help ease the city's $18-billion debt. They contended that the pensions were protected by the state constitution.
The uncertainties ahead came into focus Friday when a state judge ruled in favor of the pension fund suits, saying that the bankruptcy filing the day before had violated the Michigan Constitution. The governor lacks the power to "diminish or impair pension benefits," according to the ruling by Ingham County Circuit Judge Rosemarie Aquilina.
The state attorney general's office filed an emergency appeal with the Michigan Court of Appeals late Friday.
The first salvo in the legal battle has public employee unions and pension funds, including CalPERS, on edge.
"All bets are off in bankruptcy," said Jack Dean of the Orange County-based PensionTsunami.com. "That's why the unions are so panicked. And CalPERS is panicked. Because they don't know what's going to happen."
In Sacramento, Amy Norris, a spokeswoman for CalPERS, formally known as the California Public Employees' Retirement System, said Friday, "We will be watching what happens in Detroit." So are the cities of Stockton and San Bernardino, which have also filed for bankruptcy protection.
Detroit unions cheered the court ruling.
"There is too much at stake to play political games with the hard-earned retirement security of Detroit's public workers," said Lee Saunders, president of the American Federation of State, County and Municipal Employees.
The Detroit unions said the city had failed to negotiate in good faith. And while pension fund officials contend the state constitution protects pensions, others argue that federal bankruptcy law trumps state law.
In addition, current and retired public employees could find themselves competing with municipal bondholders for payment.
"Bondholders have been pretty immune until now," said Richard Lehmann, president of Income Securities Advisors, a bond advisory and research firm in Miami Lakes, Fla. "The question here is what prevails — the guarantee to bondholders or the guarantee to pensioners."
The Detroit battle comes after a number of governors have gone to war with unions to limit public employees' collective bargaining rights or to require government workers to pay more for healthcare and pensions to ease state fiscal woes.
In fiscal 2010, the gap nationwide between states' assets and their obligations for public-sector retirement benefits was $1.38 trillion, up nearly 9% from 2009, according to the most recent figures available from the Pew Charitable Trusts. Of that, $757 billion was for pension promises, and $627 billion was for retiree healthcare.
In Detroit the underfunded pension liability has been estimated to be $3.5 billion.
Experts say the Detroit battle could ultimately reach the U.S. Supreme Court.
"Detroit could be a step in destroying public pensions, though the law says you can't cut benefits," said John Logan, director of the labor studies program at San Francisco State University. "If they a find a way around that, it opens Pandora's box, and the battle on whether to dump bank loans or dump pensions may go all the way to the Supreme Court."
In California, CalPERS contends that its retirement system is "an arm of the state … different than other creditors."
Still, CalPERS chief counsel Peter Mixon expressed concern in a recent interview that municipalities could "seize on a 'bankruptcy solution' if they felt like the state laws ... could be avoided."
Stockton has continued making its payments to CalPERS since filing for bankruptcy protection in June 2012, despite the objections of bond investors who argued that the city should have sought concessions from the pension fund beforehand.
San Bernardino stopped paying into CalPERS after it filed for bankruptcy protection in August, faced by a $46-million general fund deficit. The city started making its payments again this month, but still owes $14.2 million from last year, according to Norris. It remains unclear what the ultimate impact on the city's retirees will be.
Public employee pension funds have argued that cities should not be allowed to treat their pensioners like other creditors while in bankruptcy.
The courts have yet to decide the issue. San Bernardino is still trying to make its argument to the court that it is eligible for bankruptcy. In Stockton, the question of pensions will probably become a key piece of the proceedings as the city moves forward with its plan in September.
"Truth be told, we know nothing," said Karol Denniston, a San Francisco-based attorney who specializes in municipal bankruptcy. "We know that under bankruptcy code there's an ability to impair creditors, but whether or not that extends to pension obligations — there is no answer."
richard.simon@latimes.com
abby.sewell@latimes.com
http://www.latimes.com/news/nationworld/nation/la-na-0720-detroit-pensions-20130720,0,4649529.story
NO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
-
07-20-2013, 11:29 AM #12
Legal battle brews over Detroit bankruptcy filing
The city's emergency manager says that pension and health care benefits are safe for at least the next six months. reinventing detroit.USA TODAY - 6 minutes ago NO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
-
07-20-2013, 05:23 PM #13
Major victory for illegal immigrant students in Michigan
The regents of the University of Michigan (UM) granted a hefty tuition discount to students who are in the country illegally. The vote to establish in-state tuition rates for illegal immigrants took place on Thursday, following months of discussion ...Daily Caller
16 hours agoWritten by
Robby SoaveNO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
-
07-21-2013, 05:55 PM #14
Autos troubles, race at root of Detroit collapse
For generations, Detroit was a place where the American dream came true. Blue-collar workers poured into its cavernous auto plants, confident that a sturdy back and strong work ethic would bring them economic security. It came true in cities across the ...Fox 28 - 1 hour ago
Bankrupt Detroit provides a warning message for many Chinese cities
South China Morning Post - 1 hour ago
Bankrupt Detroit provides a warning message for many Chinese cities
South China Morning Post - 1 hour ago
Canadian cities, take note of Detroit's downfall
CBC.ca - 1 hour ago
Detroit bankruptcy shows need for economic diversity
Global Times - 5 hours ago
What busted 'Debtroit' ? Free trade, huge pensions
Economic Times - 14 hours ago
Show recently hidden articles
In Depth
Detroit's downfall: Decline of autos, troubled racial history blamed for city's decline
Graffiti-covered buildings stand in the foreground of an overview of downtown Detroit the morning after the city filed for bankruptcy, July 19, 2013. Photo: Nathan Weber, Nyt - Nyt. Camera Star Tribune photo galleries. Camera view larger. 15 · comments ...Minneapolis Star Tribune - 42 minutes ago
Opinion
What lessons can the region learn from Detroit's fall?
If there's one thing I want people to understand about the City of Detroit's collapse, it's that most of us working here tried. We were neither lazy nor incompetent workers. In my 20-plus years as a city of Detroit employee, there have been many people like myself ...Detroit Free Press - 17 hours ago NO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
-
07-22-2013, 12:51 PM #15
Realtime Coverage Federal judge sets first hearing in Detroit bankruptcy case
By Bernie Woodall. DETROIT | Mon Jul 22, 2013 12:32pm EDT. DETROIT (Reuters) - A federal court judge on Monday set the first hearing in Detroit's bankruptcy case for Wednesday to take up the city's request to put state lawsuits challenging the bankruptcy ...Reuters - 10 minutes ago
ABC NewsDetroit Mayor Dave Bing 'This Week' Interview on City's Bankruptcy - ABC News
Wall Street JournalDetroit Bankruptcy 101 | The Short Answer w/ Jason Bellini - Wall Street Journal
New York TimesWall Street Journal Christian Science Monitor Bloomberg Christian Science Monitor Philly.com Wall Street Journal Christian Science Monitor Kansas City Star WDIV Detroit New York Daily News Examiner.com ValueWalk
Mitch Albom: Detroit, broke but unbroken
USA TODAY - 2 minutes ago
Detroit bankruptcy: How fast will it go?
USA TODAY - 2 minutes ago
Detroit not alone under crushing pension obligations
USA TODAY - 3 minutes ago
Judge delays hearing on Detroit bankruptcy, pensions
USA TODAY - 4 minutes ago
Detroit bankruptcy: Pensioners' plight draws national attention
Detroit Free Press - 19 minutes ago
Bankrupt Detroit cannot wait for federal cavalry -city manager
Reuters - 57 minutes ago
Legal wrangling shadows Detroit bankruptcy filing
Reuters - 1 hour ago
What does Detroit's bankruptcy mean for other cities?
Christian Science Monitor - 2 hours ago
Show recently hidden articlesLast edited by JohnDoe2; 07-23-2013 at 11:35 AM.
NO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
-
07-22-2013, 04:19 PM #16
Bankrupt Detroit Attracts Attorneys from All Over
Detroit has filed one of the largest U.S. municipal bankruptcies this Thursday. The entire restructuring will consider more than $18 billion dollars. . .JDJournal.com - 1 hour ago NO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
-
07-22-2013, 09:01 PM #17NO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
-
07-22-2013, 09:27 PM #18
RELATED
Illinois is dealing with its own $97 billion pension shortfall.
http://www.alipac.us/f9/detroit-bankruptcy-raises-concerns-about-other-us-cites-under-huge-retiree-debt-284137/NO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
-
07-22-2013, 09:48 PM #19
. . . The nation’s two largest public pension funds, California's public pensions, remain underfunded.
CalPERS has an estimated unfunded liability of $100 billion, while CalSTRS reports a funding gap of $70 billion . . .
http://www.alipac.us/f19/ca-leading-pension-funds-report-double-digit-returns-284138/NO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
-
07-22-2013, 10:00 PM #20
Florida’s Retirement System, for example, has a $19.2 billion deficit in its plan, which would fund the budgets of 19 other states. Florida’s plan is only 86 percent funded, which, believe it or not, isn’t bad compared to other states. Eighty percent or higher apparently is acceptable on actuarial bright-line tests.
Miami is among the metropolitan cities in danger of defaulting on its pension debt.
Pension costs in West Palm Beach have risen from $9 million to over $16 million in the last four years, and the city now faces an $8.4 million shortfall. Tampa and Jacksonville are functionally bankrupt because of their pensions, which are now only about 50 percent funded.
http://www.bizpacreview.com/2013/05/27/pension-bomb-ticks-away-72438NO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
Senate votes to keep the border open under DHS Secretary...
04-17-2024, 04:53 PM in General Discussion