Page 814 - Pensions News Today

$18 billion. stuart varney was on this couch just about an hour ago. he says this essential israeli the start of something that will have a ripple effect across the country. >> youre a retired city worker and its a troubled -- physically troubled city, you should be worried because detroits bankruptcy sets a new pattern. it sets the new model because the detroit bankruptcy judge has said yes, you can cut pensions. it doesnt matter what it says in the michigan state constitution. doesnt matter wh...

Will be plowed under. >> that is a dreadful list of financial problems. what are their choices for detroit and other cities across the country? they can cut the pensions. thats what detroit is going to do. they can cut services some more so they can still pay the pensions. that is not a very good option because services are already being cut across the country. they can raise taxes. that is a lousy option. they raised taxes already. or they can get a bailout. >> imagine how nervous these familie...

People based on outcomes, not on the services they provide. >> and there is good evidence already in hospital readmission rates that point to the fact it is having a good effect. thank you, both. coming up, today in detroit, life got even harder for a lot of people. for 29 years they took out money from my check to go in to my pension. and the city was supposed to put out an equal amount of money. they didnt fund it like they were supposed to but they got my money, and then they sit around now...

January. its sitting around and making up my mind whether to take my medicine or eat. what do they want me to do now? >> detroit on the largest public bankruptcy in u.s. history. >> can we point out to people that there is something tragically sad and obscene about that ruling where generations of incompetent public people have driven that city to bankruptcy and people are paying the ultimate price are public employees who sign and agreed to deal who is now can be taken away. >> we are not talki...

Who are frightened and confused. >> part of that confusion, nathan, obviously public pensions were once thought to be untouchable and if you loved in michigan, you thought you were protected under state law. and they dont know right now, right, just how steep these cuts could be? >> yeah, the michigan constitution does protect public pensions as a contractual obligation, but judge steven rhodes yesterday said that federal bankruptcy law will preempt the michigan constitution and allow those cont...

Month. the outgoing mayor dave bing said its a chance to put the city on a new course. >> we are going to have to fight and the fight has to be together. if we have a future as far as our children and grandchildren, we have to fix the problem now. we cant continue to kick the can down the road and not make tough decisions. >> the tough decision are the city pensions and the judge ruled billions could be cut even though michigans constitution prohibits cuts to pensions. the largest employee union...

That it did, saying in part, quote, the city no longer has resources to provide the citizens with police, fire, and emergency services. of particular importance are those 20,000 or so city retirees with guaranteed pensions that are no longer guaranteed. the ruling holds that federal law supercedes. detroit is now officially out of voters hands. >> i dont think we have a final determination as to what all of the elements are going to be to get us through this

Pain for a lot of different people. >> joining us now is a former investment banger with goldman sachs where he specialized in stance. whats your reaction to todays court ruling? >> thank you for having me here. this thing of saying they can cut the pensions, that was all about the court saying we have the power to do it. they also said were going to be cautious about cutting the pensions and try to be fair. the court talked about the states involvement. he said there was evidence of it in the r...

For over 18 years weve helped people take care of the things that matter most. join today at angieslist.com we dont want one penny cut from the city of detroits employees. >> about 20,000 workers were promised pensions. a federal judge ruled today that detroit is eligible to go forward with its chapter nine bankruptcy. its the largest city in u.s. history to do so. when detroit filed for bankruptcy in july it was an open question if the city met the legal requirements for chapter nine. today, ...

Yesterday. but were going to continue to educate the community in detroit and across michigan and across this country. you dont attack workers who have given their lives to public service at the expense of their pensions. i mean they earned their pensions. as you heard the gentleman say, those pensions were earned by them when they were working and they deserve to retire with dignity and respect. >> and you cant listen to those stories, and i heard a lot of them, i read a lot of them today, they...