Detroit Wins Lawsuit to Repay Pension over 30 Years

A federal bankruptcy judge approved Detroit’s plan to push the city’s pension payments for the Police and Fire Retirement System over 30 years instead of 20.

Judge Thomas Tucker ruled that “a 30-year amortization is indeed part of the confirmed [Plan of Adjustment], and the PFRS cannot change it.”

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Detroit Asks to Push Legacy Pension Payment Schedule by 10 Years

Facing a $131 million annual pension bill due in July 2023, Detroit Mayor Mike Duggan’s administration filed a lawsuit to request city pension funds extend by 10 years its repayment schedule from 20 to 30 years.

The lawsuit filed in U.S. Bankruptcy Court says a more extended payment plan would cost the city less over an additional decade as it approaches the “pension cliff” when it must resume payments.

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