Detroit retirees sue to prevent city from cutting health care benefits

By Jim Witters

Wilmington, Del., Oct. 22 - A group of the City of Detroit's retired workers has sued the city to prevent its planned reduction of health care benefits for the retirees and their families, according to documents filed Oct. 22 with the U.S. Bankruptcy Court for the Eastern District of Michigan.

"The city recently distributed its 2014 calendar year City of Detroit Retiree Healthcare Plan, by which the city attempts to walk away from its contractual obligation to provide vested health care benefits to the retirees and their spouses. The city has unilaterally decided to reduce its funding of the vested health care benefits by approximately 83%," the filing states.

The official committee of retirees, the Detroit Retired City Employees Association, the Retired Detroit Police and Fire Fighters Association, and Afscme Sub-Chapter 98, City Of Detroit Retirees are contesting the cuts.

The groups say they represent about 24,000 former city workers.

"The impact of the city's decision on the retirees will be devastating. To obtain comparable health care benefits, many of them will be forced to go out of pocket an additional several hundred dollars per month and several thousand dollars per year," the filing states.

The complaint says many of the retirees are "economically vulnerable, living near the poverty line, of advanced age and incapable of returning to the workforce."

The retirees are asking the court for an injunction prohibiting the reduction in benefits and unspecified damages.

They also are seeking a jury trial on the issues.

No hearing has been scheduled on the matter.

Detroit filed bankruptcy on July 18 under Chapter 9 case number 13-53846.

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