The Duggan administration is proposing a dedicated fund that officials project will pull together $377 million in the coming years to help address a looming Detroit pension shortfall in 2024.
Mayor Mike Duggan gave an overview of the Retiree Protection Fund to Detroit’s City Council during his presentation of the proposed $1 billion general fund budget for the 2017-18 fiscal year.
The mayor said he will ask the council to create the dedicated account for retirees, above the required contributions laid out in Detroit’s bankruptcy plan. The fund would gather interest and investment earnings so that by 2023 it would have $377 million to help manage massive payments the city must begin contributing in 2024.
“The retirees in this city already had their pensions cut once, and we need to make sure it never happens again,” Duggan said. “We will have a dedicated account that has to be used for retirees. We can’t hit a budget problem and take it back out.”