Detroit Union Seeks to Revive ‘13th’ Pension Check Policy
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Detroit Emergency Manager Kevyn Orr called for freezing the general employee pension fund to save money, after a city union filed court papers that may revive a program that gave retirees an extra check each year the system had excess earnings.
Before it ended in 2011, the policy of issuing a “13th” check and other payments cost Detroit’s general pension system $1.92 billion from 1985 to 2008, according to a report commissioned by the city. The city filed for bankruptcy before the Michigan Employment Relations Commission could consider restoring the checks, putting the issue on hold, according to records filed Sept. 24 in U.S. Bankruptcy Court in Detroit.