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| Detroit Ruling on Bankruptcy Lifts Pension Protections |
| 2013-12-05 |
| [NY Times] In a ruling that could reverberate far beyond bankrupt, increasingly impoverished, reliably Democrat, Detroit ... ruled by Democrats since 1962. A city whose Golden Age included the Purple Gang... , a federal judge held on Tuesday that this battered city could formally enter bankruptcy and asserted that Detroit's obligation to pay pensions in full was not untouchable. They'll probably spend as much in court now as they're in debt. The unions won't let that go unchallenged, no matter how reasonable. The judge, Steven W. Rhodes, dealt a major blow to the widely held belief that state laws preserve public pensions, and his ruling is likely to resonate in reliably Democrat Chicago, aka The Windy City or Mobtown |
| Posted by:Fred |
| #12 Meanwhile the Federal Reserve's policies of Zero Interest Rate and Quantitative Easing are stealing the value of anything denominated in dollars. No need to touch 401K's, by the time they are redeemed, they will be more like 55Z's. |
| Posted by: Anguper Hupomosing9418 2013-12-05 14:52 |
| #11 but at least your 401Ks will be safe, right? Think again |
| Posted by: Frank G 2013-12-05 11:40 |
| #10 Mayors have all been Democrat since 1962. Mayors of Detroit. |
| Posted by: JohnQC 2013-12-05 11:04 |
| #9 I think I can hear old the 10:30 coming into the station Pappy. |
| Posted by: Besoeker 2013-12-05 10:15 |
| #8 The mantra "it doesn't apply here" is already making its rounds in California. The the way things have been |
| Posted by: Pappy 2013-12-05 10:10 |
| #7 I was referring to Social Security payments. My bad, I guess |
| Posted by: Frank G 2013-12-05 09:34 |
| #6 Has the meaning of SSI changed? 40 yrs ago when I worked for Social Security SSI was Supplemental Security Income, aka federal welfare for blind, disabled & elderly (we won't talk about the scams that went on). This sounds like regular SocSec payments so WTF? |
| Posted by: AlanC 2013-12-05 09:31 |
| #5 Borrowing [at a modest rate of interest] against your SSI account for medical purposes, college, new home, should be allowed. Be a good way for the gov't to earn some money from interest. They'd probably just fritter it away like every other dime they take in. Raising the SSI early retirement age from 62 to 63 would be relatively painless, and save some bucks also. Lifting the $15k max you can earn and still draw early SSI would also bring in some bucks. Folks would still have to pay income tax. I've never been able to figure that one out. If it were designed to discourage people from retiring at age 62, it damn sure isn't working. |
| Posted by: Besoeker 2013-12-05 08:20 |
| #4 will be interesting to see how this plays out. We have already locked in a 5 year freeze on pensionable pay and increased employee contributions. New employees get 401K only and SSI (since 2 yrs ago) |
| Posted by: Frank G 2013-12-05 08:11 |
| #3 at my local gubbamint employer, most employees eligible for pensions are not eligible for SSI, or if they are, will get severely diminished payments due to their concurrently receiving a pension (as it should be) here is the FAQ |
| Posted by: Frank G 2013-12-05 08:08 |
| #2 Those detroit "assets" the pensions are secured on are people. The "open borders with slavery inside" model of the blue state won't attract wealth creators. |
| Posted by: Bright Pebbles 2013-12-05 06:45 |
| #1 "No bankruptcy court had ruled that before. It will be instructive." Perhaps not in municipal cases, but plenty of people have lost pensions through the bankruptcy of private entities. I suspect the unions and pensioners are out of luck. When one of the big automakers who took the Gov't bailout a few years ago, some rather interesting pension deals were struck between the company, union, and gov't. One of the outcomes was the so-called, 'corporate pension and Social Security benefits offset'. The offset came as quite a surprise to those who thought they might receive both payments [SSI and full corporate pension]. The corporate medical coverage evaporated as well. I suspect we'll see some rather innovative methods used by the gov't to avoid pension and insurance payments in the future. They're broke, flat broke, and the only way to survive is to take it from someone else, someone outside the beltway. Obamacare and Obamacare penalty taxes, new gasoline taxes, Medicare reductions, troop cuts, pension reductions, whatever it takes. Judge Roberts of the Supreme Court ruled this year that the Obamacare enrollment penalty was actually a tax. I await the repealing of this "tax" by the only body authorized to "tax", that being the US Congress. |
| Posted by: Besoeker 2013-12-05 03:42 |