Declaring Detroit bankrupt to gut employee pensions? Not so fast!

Citing the unconstitutionality of their actions under the Michigan constitution, Ingraham County Circuit Judge Rosemarie Aquilina has ordered Republican Gov. Rick Snyder and Detroit emergency manager Kevyn Orr to take no further actions that threaten to diminish the pension benefits of City of Detroit retirees.

Aquilina said the Michigan Constitution prohibits actions that will lessen the pension benefits of public employees, including those in the City of Detroit. Snyder and Orr violated the constitution by going ahead with the bankruptcy filing, because they know reductions in those benefits will result, Aquilina said.

“We can’t speculate what the bankruptcy court might order,” said assistant Attorney General Brian Devlin, representing the governor and other state defendants.

“It’s a certainty, sir,” Aquilina replied. “That’s why you filed for bankruptcy.”

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1 thought on “Declaring Detroit bankrupt to gut employee pensions? Not so fast!

  1. The question to be asked here is if Walker’s attacks on Milwaukee will lead to a similar bankruptcy action and its effects in the future.

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