DETROIT (Michigan News Source) – Detroit’s City Council will review a plan to give $10 million to its retirees and beneficiaries in the form of a bonus.
The plan will be presented to the city council at its July 22 meeting.
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Each year, the city council decides whether to give retirees a “13th check” and the city stated it is not intended to be an annual benefit but a year-by-year decision made by the city council “if budgeted funding permits.”
It’s part of the city’s response to the 2014 bankruptcy it went through when the pension system had its benefits “frozen.” The bankruptcy impacted about 21,000 retired workers who had pension reductions and cost-of-living adjustments removed during the bankruptcy process.
The city council approved a $10 million stipend to the retirees in FY 2025.
If approved this year, it would mean that the retired members and beneficiaries of the General Retirement System would get a $467 check and the retired members and beneficiaries of the Police and Fire Retirement System would get a $654 check.