Detroit retirement systems seek direct appeal of eligibility ruling

By Jim Witters

Wilmington, Del., Dec. 5 - The two retirement systems representing City of Detroit workers are seeking certification from the U.S. Bankruptcy Court for the Eastern District of Michigan for a direct appeal of the bankruptcy court's ruling that the city is eligible for Chapter 9 protection.

In a Dec. 4 filing with the bankruptcy court, the General Retirement System and the Police and Fire Retirement System seek to bypass the U.S. District Court and appeal directly to the U.S. Court of Appeals for the Sixth Circuit.

The bankruptcy court ruled Dec. 3 that the city is eligible to be a Chapter 9 debtor and can seek to discharge accrued pension benefits in a plan of adjustment.

More than 32,000 active and retired city employees participate in the retirement systems, according to court documents.

"Swift resolution of whether the city may proceed in Chapter 9 bankruptcy is of paramount importance to the city, the state, the public, and those municipal employees and retirees whose livelihoods depend on the accrued pension benefits that they earned and that the city seeks to discharge in bankruptcy," the filing states.

No hearing has been scheduled to hear the request.

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

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