SYS-CON MEDIA Authors: Gilad Parann-Nissany, Unitiv Blog, Bob Gourley, Kevin Benedict, Maxime Charlès

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GRS And PFRS Statement For The Objection To The Eligibility Of The City Of Detroit's Chapter 9 Bankruptcy

DETROIT, Dec. 3, 2013 /PRNewswire/ -- "We respectfully disagree with the Court's ruling and intend to appeal the decision in order to uphold the Pensions Clause of the State Constitution under Tenth Amendment principles.

"The Pensions Clause of the Michigan Constitution absolutely bars any attempt by the City to cut or impair accrued pensions, no matter the reason.

"The State Constitution represents the people's will. That will cannot be ignored or subverted because it's financially convenient to do so, or because slashing pensions allows for a city to escape from its constitutionally protected pension benefit obligations.

"We submit that the Pensions Clause requires that the Court has two options. The first option is that it follows the earlier State Court ruling and finds the Emergency Manager Act -- or Public Act 436 – unconstitutional, which means the City can't be a debtor under Chapter 9 under these circumstances. The second option is that it determines that the law is limited by the Pensions Clause of the Michigan Constitution, which requires that as the City works through bankruptcy its pension obligations will be fully respected and upheld.

"The General Retirement System Board and the Police and Fire Retirement System Board have and will continue to work in good faith with all stakeholders to find the best outcomes to benefit Detroit, our members, retirees and beneficiaries."


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