Michigan Attorney General Bill Schuette has
announced his decision to side with City of Detroit retirees and argue on their
behalf during bankruptcy proceedings relative to pension benefits.
Although City of Detroit Emergency Manager
Kevyn Orr has not officially sought a reduction in city retirees pension
benefits, all signs point to some level of reduction. Orr has listed the city’s
two pension systems, one for police and firefighters and one for all other
employees, as the top unsecured creditors in bankruptcy court filings to the
tune of $3.5 billion.
Meanwhile, another part of Schuette’s office
will be representing Governor Rick Snyder before the U.S. Bankruptcy Court.
Schuette’s Chief Legal Counsel, Matthew
Schneider, will be representing the Governor before the Court and Judge Steven
Rhodes; while Assistant AGs Michael Bell, Heather Meingast, William Bloomfield,
Linus Banghart-Linn, Frank Monticello, and Solicitor General John Bursch and
Deputy Solicitor General Eric Restuccia will represent Detroit pensioners, with
Bursch as lead counsel.
Mr. Schuette has stated in interviews and
statements that the Michigan Constitution is clear on this issue, prohibiting
the impairment or diminishment of public pensions, and he cannot ignore the
Constitution.