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Friday, July 19, 2013

Detroit’s City Retirees Worry Pensions Won’t Be Paid

Representatives of Detroit's active and retired public workers wait for a meeting in Detroit, Wednesday, July 10, 2013. (Paul Sancya/AP)

Representatives of Detroit’s active and retired public workers wait for a meeting in Detroit, Wednesday, July 10, 2013. (Paul Sancya/AP)

Michigan Governor Rick Snyder says he’s not sure whether all of the people owed money by the city of Detroit will ever be paid, now that the city has declared bankruptcy.

He says the city will continue to pay its bills and its current employees — but no one is sure what will happen to the 21,000 retirees who depend on city pensions and medical care to live.

The money provided to the pension fund is the second largest expense for Detroit, after fire and police services.

Retirees say lawmakers made bad decisions that led to the the pension fund being in the red by $3.5 billion — but officials say they failed to negotiate with the unions to lower the pension payments.

Guest

  • Cynthia Falska, worked for the Detroit Police Department for 33 years. Her husband is also retired from the department.

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