Detroit retirees, community leaders submit alternative plan - Los Angeles News | FOX 11 LA KTTV

Detroit retirees, community leaders submit alternative bankruptcy plan

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(WJBK) -

Detroit retirees will get more of their pensions than initially expected under emergency manager Kevyn Orr's new bankruptcy plan, but retirees and community leaders say the cuts are still too large.

The group Detroiters Resisting Emergency Management put forth its own plan, calling for pensioners to be held harmless, interest rates from the swaps deal to be terminated and the end of the city's emergency management.

"It appears that the retirees are being scapegoated," Detroit retiree Cecily McClellan said at Monday's meeting.

Mark Diaz of the Police Officers Association said the plan "treads on the rim of inhumane and cruel."

Bill Nowling, the spokesperson for Orr's office, says the pension cuts in the plan of adjustment are necessary if Detroit will move forward, and that most creditors are taking bigger hits than retirees.

"There's a wide disparity, and I think that shows the lengths that the emergency manager and his team went to to make sure that we prioritize the cuts and the adjustments that are necessary," Nowling says.

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