Here’s a New York Times story published today about a pension solution negotiated by unions and the City of Detroit.
Stockton’s pension obligations have been a major topic during the city’s ongoing Chapter 9 bankruptcy trial, which is scheduled to resume July 8. Here’s an excerpt from the Times’ story:
“The new plan is called a hybrid, which means the workers will keep some of their current plan’s most valuable features but will give up others. Trading down to a less generous pension plan is often said to be a legal nonstarter for government workers, so if Detroit succeeds, its hybrid could become a model for other distressed governments from Maine to California.”