Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

9/27/2013 (1 year ago)

Catholic Online (www.catholic.org)

City overpaid billions of dollars, leading to calamitous bankruptcy

According to a review board, Detroit's municipal pension fund made payments over the years to retirees, active workers and others above and beyond normal benefits. This "easy street" for some spelled disaster to this once proud American city, costing Detroit billions of dollars - finally pushing it over the edge into bankruptcy. 

Detroit's auditor general and inspector general have been examining the pension system for possible fraud or misfeasance since June.

Detroit's auditor general and inspector general have been examining the pension system for possible fraud or misfeasance since June.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

9/27/2013 (1 year ago)

Published in U.S.

Keywords: Detroit, pension, overpayments, report, bankruptcy


LOS ANGELES, CA (Catholic Online) - The not publicly disclosed payments included bonuses to retirees, supplements to workers that had not yet retired and cash to the families of workers who died before becoming eligible to collect a pension.

These allegations are according to reports by an outside actuary and other people intimately knowledgeable.

The amount received by each recipient has not been divulged. But available records suggest that the trustees approving the payments did not discriminate; nearly everybody in the plan received them. Most of the trustees on Detroit's two pension boards represent organized labor, and for years they could outvote anyone who challenged the payments.

Detroit's auditor general and inspector general have been examining the pension system for possible fraud or misfeasance since June. The report is expected this week. The report is expected to determine how much negative impact the over payments had.

"It was like dandelions," Joseph Harris, who served as Detroit's independent auditor general from 1995 to 2005 says. "You just accept them. They were there, something you've seen all your life."

When asked on what legal authority the trustees made the payments, Harris said, "My understanding was, it had to be approved by City Council, and council was under the belief that the money was there - that the pension funds were earning the money - with the consideration that in bad times the city would be making up the difference. I hate to say that. Ultimately the fund has to be funded by the taxpayers."

Tina Bassett, a spokeswoman for Detroit's pension trustees said she thought the outside actuary's analysis, which concluded that the extra payments had cost the city nearly $2 billion over 23 years, was "not being fully straight with what happened."

"People were having a hard time, living hand-to-mouth, and we thought we would give them some extra," Bassett said.

Of all the non-pension payments, Bassett said, 54 percent went to active workers, 14 percent went to retirees and 32 percent went to the city, which used its share to lower its annual contributions to the fund.

The excess payments were often made near the end of the year, when recipients needed money for the holidays, or for winter heating.

In a just legal system, the government officials who paid out the "stolen" funds, should be prosecuted and placed in prison. These so-called "public servants" have created an separate class. They should all be voted out. Those who believed they were above the law should be sent to tiny rooms with barred windows for a very, very long time.

Click here to learn about our Saint Michael the Archangel conference this Nov 1-3!

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for March 2015
Universal:
Scientists: That those involved in scientific research may serve the well-being of the whole human person.
Evangelization: Contribution of women: That the unique contribution of women to the life of the Church may be recognized always.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More U.S.

Good Samaritan who fed homeless for 10 years charged with unbelievable $2,000 fine Watch

Image of

By Hannah Raissa Marfil (NEWS CONSORTIUM)

Founder of the nonprofit mobile food truck Chow Train, Joan Cheever, was fined by the San Antonio, Texas police for about $2,000 due to the lack of permit for the trucks she is using to transport food. Cheever argues she has the right to do her charitable activity ... continue reading


Tragic final hours of Abraham Lincoln recounted on anniversary of his assassination Watch

Image of Abraham Lincoln's assassin John Wilkes Booth's final words were reportedly

By Catholic Online (NEWS CONSORTIUM)

Long troubled by depression, 16th U.S. President Abraham Lincoln awoke on the last day of his life, April 14, 1865 in an uncommonly good mood. Lincoln and his wife Mary Todd decided to attend the hit farce comedy "Our American Cousin," which was playing at ... continue reading


Courage in the Storm: Three Cheers for Wyoming Catholic College! Watch

Image of I do not personally know President Kevin Roberts of Wyoming Catholic. I have never even visited Wyoming Catholic College. However, the action of the President inspires me. The College is now on my radar screen, so to speak. I will be praying for them and paying close attention to their future. I ask my readers to do the same. - Deacon Keith Fournier

By Deacon Keith Fournier

Since the objective of a Catholic University is to assure in an institutional manner a Christian presence in the university world confronting the great problems of society and culture, every Catholic University, as Catholic, must have the following essential ... continue reading


Abercrombie and Fitch employee reveals racial discrimination and sexual harassment at work Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

Over the past ten years, Abercrombie and Fitch has received a number of discrimination lawsuits; they even paid $40 million in settlement back in 2006. Just recently, an unnamed employee went out in the open and gave full information about the constant racial ... continue reading


Know someone in the military? They could be in danger from Islamic militants Watch

Image of The Islamic State is threatening U.S. service members and their families, prompting senior military officials to issue guidelines about social media activity, to protect service members.

By Matt Waterson (NEWS CONSORTIUM)

The Islamic State's threat of violence towards U.S. service members is being taken very seriously by U.S. military officials, who have issued a warning to troops that instructs them to hide all information about them or their families on public accessible sites, ... continue reading


'One nation under God' defense team claims victory after atheists back down Watch

Image of

By Hannah Raissa Marfil (NEWS CONSORTIUM)

Marking their fifth victory in a row, the conservative wing in defense of retaining the words "one nation under God" in the Pledge of Allegiance, the Becket Fund for Religious Liberty is claiming victory on the newest court trial. This is due to the decision from the ... continue reading


Emotions spike over 'disrespectful' political cartoon depicting 2-year-old murder victim Watch

Image of Kaden Lum was brutally murdered at just 2-years-old.

By Talia Ramos (NEWS CONSORTIUM)

An editorial cartoon published is viewed as "disrespectful" by the family of 2-year-old Kaden Lum, killed in the still unresolved shooting last March 28. MUNTINLUPA, PHILIPPINES (Catholic Online) - Kaden's family was left outraged with Kitsap Sun newspaper's political ... continue reading


New Islamic State video vows another 9/11 and to 'burn America' Watch

Image of Entitled

By Catholic Online (NEWS CONSORTIUM)

The evil media machine of Islamic State remains ever ready. The Middle Eastern terror group latest video declares there is "no safety for any American on the globe" and claims that the U.S. will burn in another 9/11-style attack. LOS ANGELES, CA (Catholic ... continue reading


Divine Mercy Sunday, Doubting Thomas and the Jubilee Year of Mercy Watch

Image of Pope Francis: Jesus of Nazareth, by his words, his actions, and his entire person reveals the mercy of God. We need constantly to contemplate the mystery of mercy.

By Deacon Keith Fournier

Thank God for 'Doubting Thomas'. His doubts healed the wounds of our own disbelief. They also open up, for all who look with the eyes of faith, a deeper understanding of the redemptive effect of the wounds of Jesus - and the role our own wounds can have in our ... continue reading


Repentance Walks but Mercy Runs: Pope of Mercy Invokes a Year of Mercy Watch

Image of

By Deacon Keith Fournier

On Saturday 11 April, on the eve of what is celebrated as Mercy Sunday in the Latin Rite of the Catholic Church, Pope Francis will officially convoke an Extraordinary Jubilee Year of Mercy. He will release what is called a Bull of Indiction. Such a Papal Bull is a ... continue reading


All U.S. News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Acts 6:1-7
1 About this time, when the number of disciples was ... Read More

Psalm, Psalms 33:1-2, 4-5, 18-19
4 The word of Yahweh is straightforward, all he does ... Read More

Gospel, Luke 24:35-48
16 That evening the disciples went down to the shore ... Read More

Saint of the Day

Saint of the Day for April 18th, 2015 Image

St. Apollonius the Apologist
April 18: Martyr whose Apologia, or defense of the faith, is considered ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter