Detroit’s workers and retirees have voted in favour of reducing their pension benefits.

“The voting shows strong support for the city’s plan to adjust its debts and for the investment necessary to provide essential services and put Detroit on secure financial footing,” says Detroit emergency manager Kevyn Orr.

General retirees will lose their cost-of-living adjustments and see their pensions reduced by 4.5%, while retired police officers and firefighters will give up a portion of their cost-of-living increases.

“We are pleased that the members, retirees and beneficiaries of the General Retirement System for the City of Detroit overwhelmingly voted to approve the city’s fourth amended plan of adjustment,” says Tina Bassett, spokesperson for the General Retirement System for the City of Detroit.

“While no one is happy that our pensions have been reduced, the plan does provide for the opportunity of restoration of our benefits.

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Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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