Detroit's Future Vs Employees Pension
Whether Detroit has a bright future may get down to if its employees and retirees refuse to take cuts in their pension contracts. When an entity like Detroit goes through reorganization because of poor financial condition the pain must be fairly distributed. If it is not, Detroit will continue to sputter along and never return to greatness. In this case the major parties include the creditors, labor, the City's citizens, retirees and business. All must be treated fairly. If they are not, the city will collapse under its own weight and continue to whither. Per a report issued by the city of Detroit on June 14, 2013, Detroit's pension plans have unfunded liabilities of approximately $2,8 billion . Either the city has to find funds or lower the benefits going to retirees. If the employees refuse, other areas of the city w ill need to sacrifice or assets must be sold. Selling assets does not solve the problem, it just defers it. Per the above report, "During the year 2