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> The city made commitments to its then-workers based on the assumption that population and revenue would hold fast Just a few years ago the pension board, wit
by danielweber 12y ago
> The city made commitments to its then-workers based on the assumption that population and revenue would hold fast
Just a few years ago the pension board, without oversight, continued to give out 13th checks (a bonus pension check for the 13th month of the year) in years that they happened to have above-average returns. Of course, the years with above-average returns were supposed to balance out the years with below-average returns.
Google Detroit 13th check for more on that one. Some groups sued to get the 13th check turned back on, arguing that the issuance of them, even though it happened without oversight, created an expectation of them and therefore a contractual obligation.