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Detroit’s retired city workers sue over benefits

The retirees said the citys decision to reduce funding of vested health-care benefits by 83 percent, starting in March, will force retirees to spend money out of pocket to replace the coverage.

By Joel Rosenblatt | Updated on January 10, 2014
Traffic backs up along I-75 due to icy conditions on pavement in Detroit, Tuesday, Jan. 7, 2014. (AP Photo/Paul Sancya)

Jan. 9 (Bloomberg) — Detroit, struggling to provide its 700,000 residents with basic services, was sued by retired workers including police and firefighters who are seeking to block the bankrupt city from unilaterally cutting their health- care benefits.

The retirees said the city’s decision to reduce funding of vested health-care benefits by 83 percent, starting in March, will force retirees to spend money out of pocket to replace the coverage, according to a filing today by representatives of the workers in federal bankruptcy court in Detroit.

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