Detroit retiree representative: If pensioners reject Grand Bargain, you will have no sympathy from anybody | MLive.com

DETROIT, MI — The city’s retirees are being urged by some of their representatives to vote in favor of a plan that would cut their monthly pension checks at far lower rates than initially proposed.

Gov. Rick Snyder on Friday signed legislation that would send $194.8 million in state funds and $466 million in private donations to Detroit’s underfunded pension systems — but only if city employees and retirees approve the plan in a vote taking place as part of the bankruptcy process.

The money would cap reductions in monthly pension checks at 20 percent and keep most cuts at 4.5 percent for non-uniformed former workers, and less for police and fire retirees.

Without approval of the settlement, in which retiree groups would give up the right to fight cuts, pensioners could lose 30 cents on the dollar, Detroit Emergency Manager Kevyn Orr said Friday.

State Rep. Thomas Stallworth said he’s been hearing from retirees who feel betrayed and fearful, and that he shares some of their frustration.

But he still urged a vote in favor of the shallower cuts.

“In many ways, we failed the citizens of Detroit,” Stalworth said.

“… But this package of bills really does represent the best possible option under the circumstances that we face.”

Shirley Lightsey, president of the Detroit Retired City Employees Association and a member of the federally appointed committee representing Detroit’s retirees in bankruptcy court, said pensioners have only one rational choice.

“Even now,” she said on stage with the governor as he prepared to sign the legislation Friday, “we are not happy to give up some of our promised benefits and legal rights.”

“But it’s now time to use the wisdom and discernment we all have. I now know that the only way to vote is yes. When you look at a 4.5-percent reduction vs. 27 percent, just look at the money.”

She said many retirees have vowed a ‘no’ vote as a matter of principle.

“We can’t eat principles and uncertainty does not pay the bills,” she said.

“… If you give that money up, you will have no sympathy from anybody.”

Don Taylor, president of the Retired Detroit Police and Fire Fighters Association, also urged approval

“The decision that retirees are now making will determine the conditions many of us will be under for the remainder of our lives,” he said.

Retiree Renetta Major, 53, of Southfield said this week she begrudgingly voted in favor of the plan.

“If I took a chance on not voting at all or voting no, they would have been able to take whatever they want,” she said.

She said she did janitorial work for the city for 11 years before retiring due to illness. She now collects a $612 monthly pension check.

“I didn’t work as long as them, but I’m thing about the ones who put in 30 years,” she said. “You were told that you work 30 years and you’ve got something down at the end of the tunnel for you, and you find out they’re going to take some that… I have a problem with that.”

Another retiree Mary Highgate takes a harder line against the cuts.

She told the Associated Press she plans to return her ballot July 1 with a ‘no’ vote.

“Everybody I know is voting ‘no’ because we don’t trust them,” said Highgate, 69. “I’m voting No! No! No!”

“All they care about is the art. Do you really think they care about the little people? Have they ever?”

via Detroit retiree representative: If pensioners reject Grand Bargain, you will have no sympathy from anybody | MLive.com.