Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

9/27/2013 (2 years 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 (2 years 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'


Copyright 2015 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for February 2016
Universal:
That prisoners, especially the young, may be able to rebuild lives of dignity.
Evangelization: That married people who are separated may find welcome and support in the Christian community.



Comments


More U.S.

FBI arrests Cliven Bundy leading to protesters' surrender in Oregon occupation Watch

Image of Cliven Bundy was arrested by the FBI moments after stepping off a plane (Reuters).

By Kenya Sinclair (CALIFORNIA NETWORK)

Nevada rancher Cliven Bundy stepped off a plane at the Portland International Airport Wednesday evening and was taken to Multnomah County jail, where his sons Ammon and Ryan Bundy were already being held. LOS ANGELES, CA (Catholic Online) - On Thursday morning the ... continue reading


Beauty and the Priest - Cleric indicted for murder in cold case from 1960 Watch

Image of Irene Garza was 25 at the time of her death. No motive has been established in the death of the beauty queen from McAllen, Texas, but John Feit is the only suspect.

By Marshall Connolly, Catholic Online (THE CALIFORNIA NETWORK)

A former priest has been indicted for a 1960 cold case murder of a woman. According to Texas authorities, then 27-year-old priest, John Feit, heard the confession of Irene Garza, then asphyxiated her afterwards. Her body was found in a canal days later. Feit will now ... continue reading


Former Catholic priest arrested in connection with beauty queen's murder - 56 years later Watch

Image of Now a married grandfather, former Catholic priest John Feit is accused in the 1960 murder of 27-year-old Irene Garza in 1960 (CNN).

By Catholic Online (CALIFORNIA NETWORK)

Many thought, but few actually believed that a small town Catholic priest would be capable of such a savage crime. Fifty-six long years later, former priest John Feit, now a married grandfather living in Arizona has been arrested in connection with the 1960 ... continue reading


Ash Wednesday and Lent. It Works if you Work It Watch

Image of After receiving the ashes, we are exhorted to leave the Church as penitents and pilgrims and continue in a Christian way of life every day

By Deacon Keith Fournier

If we enter into the observance of Lent with our entire person, it can draw us, at its' closure, into a deeper embrace and experience of the power of the Resurrection, beginning right now and stretching into eternity. Our frequent liturgical celebrations present ... continue reading


No Catholic or other Christian Should Support the Candidacy of Bernie Sanders Watch

Image of Senator Bernie Sanders, a candidate for the Presidency of the United States of America, denies the fundamental Human Right to Life of children in the womb.

By Deacon Keith Fournier

Legalized abortion on demand is an open rejection of the entire ethic of being our brothers (and sisters) keeper. There can be no enduring lasting solidarity upon which to build a secure future in a culture that kills its own children and calls it a right. No ... continue reading


Mardi Gras' several names and traditions: How is it celebrated around the world? Watch

Image of Mardi Gras is famous for its colors, masks, beads, food, floats and more (Pixabay)!

By Kenya Sinclair (CALIFORNIA NETWORK)

People around the world celebrate Fat Tuesday each year with regional traditions - but did you know it is a celebration with roots in Christianity?  LOS ANGELES, CA (Catholic Online) - "Fat Tuesday" is English for the French "Mardi Gras," and is traditionally ... continue reading


7 Fun facts about Fat Tuesday and Mardi Gras celebrations Watch

Image of Mardi Gras first became a holiday in 1582.

By Abigail James (CALIFORNIA NETWORK)

Mardi Gras is French for Fat Tuesday; it comes directly before Ash Wednesday. "Mardi Gras is a raucous celebratory affair that serves as a final shebang before the 40-day abstinence of Lent," explains The Huffington Post. LOS ANGELES, CA (Catholic Online) - Amidst all ... continue reading


605,000 undocumented immigrants to receive driver's licenses in California Watch

Image of California driver's licenses do not bestow any federal benefits to the recipient. State sources say the law is intended to make California roadways safer.

By Catholic Online (CALIFORNIA NETWORK)

Thanks to a new California law known as AB60, which took effect on January 2, 2015, the Department of Motor Vehicles, or DMV has handed out 605,000 driver's licenses to undocumented workers. It is estimated that 1.4 million migrants will receive licenses under ... continue reading


Center for Medical Progress releases another Planned Parenthood video despite injunction Watch

Image of Pro-life CMP stands against abortionists NAF (imgsuccess).

By Kenya Sinclair (CALIFORNIA NETWORK)

After ousting illegal actions performed by Planned Parenthood clinics, the Center for Medical Progress (CMP), and its founder Daniel Daleiden, have been ordered to cease further distribution of illegally-obtained Planned Parenthood footage. Unfortunately for the ... continue reading


Huff Po Gestapo, beats down Trump, First Amendment with editorial billy club Watch

Image of Huffington Post has found a way to turn the First Amendment into a billy club for their PC police duties.

By David Drudge (CALIFORNIA NETWORK)

Liberal mouthpiece, The Huffington Post (not to be confused with an actual news organization) is pandering to liberal readers by posting an addendum at the end of every story about Donald Trump. The addendum labels Trump a "racist" and a "serial liar." LOS ANGELES, CA ... continue reading


All U.S. News

Newsletters

Newsletter Sign Up icon

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

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

Daily Readings

Reading 1, Isaiah 58:1-9
1 Shout for all you are worth, do not hold back, raise your voice like a ... Read More

Psalm, Psalms 51:3-4, 5-6, 18-19
3 For I am well aware of my offences, my sin is constantly in ... Read More

Gospel, Matthew 9:14-15
14 Then John's disciples came to him and said, 'Why is it that we and the ... Read More

Saint of the Day

Saint of the Day for February 12th, 2016 Image

St. Buonfiglio Monaldo
February 12: He was one of seven Florentines who had joined ... Read More