Pension Freeze Proposed for Detroit

Unions object, of course


Detroit's emergency manager wants to freeze the city's pension system for public workers in light of mounting evidence that it was operated in an unsound manner for many years, contributing to the city's downfall.

The emergency manager, Kevyn Orr, issued on Thursday the preliminary results of a three-month investigation that identified questionable actions, including diversions of pooled money into individual accounts, excessive real estate investments that lost millions of dollars and "disconcerting administrative protocols" for the handling of health care and unemployment benefits. The investigation, conducted jointly by Detroit's independent auditor general and inspector general, was the first stage of a review that is continuing and expanding, investigators said.