Detroit Bankruptcy Takes Aim at Pensions

Source: Jane Slaughter, Labor Notes, July 19, 2013

…Orr sprung the hurry-up filing yesterday because union pension fund attorneys were scheduled to be in court on Monday, arguing for an injunction against bankruptcy. The state constitution appears to protect public employee pensions: “The accrued financial benefits of each pension plan and retirement system of the state and its political subdivisions shall be a contractual obligation thereof and shall not be diminished or impaired thereby.” But proponents of making city workers bite the bullet note that bankruptcy judges have wide latitude to break contracts. …