Detroit Retirees Appeal Bankruptcy
DAREA evolved from the unfair pensions and benefits cuts to the City of Detroit's retirees and workers as a result of the Detroit Chapter 9 bankruptcy.
We believe that our best interests were not represented by most of our official unions, committees, or associations. As a result of this misrepresentation, a group of concerned retirees, active workers, and other citizens began meeting during the bankruptcy procedures to protest pension cuts. DAREA opposes all cuts to pensions, annuity savings, and healthcare benefits for City of Detroit's retirees and active workers.
We believe the plan of adjustment as confirmed violates the Michigan Constitution, Article IX, Section 24, which states pensions are not to be impaired and/or diminished. We believe this decision is wrong and must be challenged. Based on this belief, DAREA filed an appeal in the US District Court on January 27, 2015.
Our appeal states: "The lower court erred by accepting and confirming a Plan of Adjustment that diminished and impaired the pension rights of retirees. This Court should REVERSE the Confirmation of the Plan of Adjustment insofar as it violates Chapter 9 and the Michigan consitutions, and fashion appropriate relief."
Voice of Detroit Coverage of DAREA Appeal
Professor Peter J. Hammer connects the dots of spatial racism and austerity governance in Detroit's bankruptcy and beyond.
Get ready for our Fish Fry Fundraiser, September 26 11:30am-5:30pm at 17160 Harlow. Spread the word!
January 27 – DAREA files appeal in US Federal Court, Eastern District
March 12 – DAREA responds to City's/Jones Day's motion to dismiss our appeal as equitably and constitutionally moot
April 25 – DAREA files response to City/Jones Day response to DAREA appeal
May 11 – Illinois Supreme Court rules the vested/earned pensions cannot be diminished or impaired
June 5 – DAREA files supplemental brief connecting our repeal to Illinois Supreme Court outcome
There will always be the ignorant and uninformed Max Shames amongst us. On Labor Day 1974, President Gerald Ford signed the Employee Retirement Income Security Act (ERISA) into law. That law, more than a decade in the making, protected trillions of dollars in earned retirement pension benefits and enacted minimum protection standards on retirement pension plans for American workers. Efforts to erode and/or wipe out these benefits with jive 402K Plans do nothing to protect the worker. In contrast to the plight of working people, the top executives of companies engulfed in financial scandals have no retirement worries, even in those instances where their companies have collapsed. In the case of Enron, Jeffrey Skilling made $78 million. Laid-off Enron workers received a mere $4,500 severance payment, no matter how many years they had worked for the company. It always amazes me how stupid an individual can be to go after his working brother and sister, while giving a pass on Jeff Skillings of the world. A pension is no more corporate welfare than Shame's grasp of the concept.
It's unfortunate that anyone would call a pension "Corporate Welfare". Like you, we also saved a certain amount of money, each pay period, that contributed to our pension. It's actually called a "Benefit" for the sacrifice we made to work for a municipality for less money than if we worked at a private company. You do know, all companies offer pensions for people who dedicate their lives to them, don't you?
I'm sorry but I cannot feel bad for anyone that complains about not getting enough money for NOT working. Pensions are for people that do not have the intelligence to save for the future. I do not have a pension, never needed one, but I do have quite a bit of money that I've saved. Pensions are nothing but "Corporate Welfare".
Fight the good fight! Keep the faith for good results #
Can you post details on the fish fry fundraiser tomorrow??