The City of Detroit, working through federal bankruptcy mediators, has reached an agreement on pension and healthcare benefits with an association representing retired Detroit police and firefighters.

It’s the first agreement with a major group of city retirees.

The Retired Detroit Police and Fire Fighters Association (RDPFFA), one of Detroit’s oldest and largest employee associations, reached an agreement with the city regarding the bankruptcy plan of adjustment.

The association has about 6,500 members, or more than 80% of Detroit’s retired police officers and firefighters. The association intends to recommend that its members approve the plan with the agreed-upon provisions, which preserve pensions and some cost-of-living allowances for retirees.

“This agreement comes after some very long, difficult but collaborative negotiating sessions with all parties involved,” says Brian O’Keefe, managing partner for Lippitt O’Keefe Gornbein, counsel for the RDPFFA. “This settlement is fair and equitable for both the city and the proud members of RDPFFA.”

The firm also represents the Detroit Retired City Employees Association (DRCEA). There are approximately 12,100 City of Detroit non-uniform retirees.

O’Keefe says that discussions between bankruptcy mediators, the City of Detroit and the DRCEA will continue to take place.

“We are continuing to work on behalf of the DRCEA’s membership to preserve their pension and healthcare benefits,” he adds. “We are optimistic that it will be possible to achieve an equitable outcome.”

Retired police and firefighters are expected to vote on the plan starting in early May.

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Copyright © 2017 Transcontinental Media G.P. Originally published on benefitscanada.com

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