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The Grand Bargain is given the green light by Detroit's retirees


DETROIT (WKZO) -- The City of Detroit’s retirees have voted to go along with the Grand Bargain.

That vote will allow Federal bankruptcy Judge Steven Rhodes the option to tap into a pool of 816-million dollars pledged by foundations, businesses, unions and the state of Michigan to greatly blunt the impact the effects of Detroit’s bankruptcy on their pension checks. 

82% of the police and fire retirees backed the deal. 73% of general union members supported it.

General Retirees would take a 4.5% cut, lose cost of living increases. Police and fire retirees would get the same amount they do now but lose most of their cost of living.

Both unions will see healthcare benefit cuts.

The alternative had it failed was cuts of up to 27%.

The Grand Bargain also protects the Detroit Institute of Arts.

But only if Judge Rhodes agrees to go along with the deal, and isn't persuaded by big corporate debtors that they deserve to get paid off first. 

The Trial begins in Mid-August.