DETROIT (AP) - The city of Detroit says workers and retirees have approved pension cuts, a crucial step to emerging from the largest municipal bankruptcy in U.S. history.
The city reported results Monday after two months of balloting ended July 11. A judge still must hold a trial to determine if Detroit's overall bankruptcy plan is fair and feasible, but support from retirees is vital.
General retirees would get a 4.5 percent pension cut and loss of annual inflation adjustments. Retired police officers and firefighters would lose only a portion of the annual cost-of-living raise.
Approval of the pension changes triggers an extraordinary $816 million bailout from the state of Michigan, foundations and the Detroit Institute of Arts. The money would prevent the sale of city-owned art and avoid deeper pension cuts.