The team trying to get the city of Detroit out of bankruptcy is taking a “stunning” approach to restructuring retiree health benefits, according to the committee that represents the city’s retirees.
The committee talks about funding for pension plans and “other post-employment benefits” (OPEB) — retiree health benefits — in an objection to a draft city debt adjustment disclosure statement.
The city filed for federal bankruptcy court protection in July.
Since then, the city has reduced support for retiree health coverage about 85 percent and eliminated support for retiree dental and vision coverage, the retirees’ committee writes in the objection.
Under the new amended debt-adjustment plan, “the city has completely eliminated all responsibility for retiree health care and other benefits for the retirees,” the committee writes.