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 2016 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for May 2016
Universal:
Respect for Women: That in every country of the world, women may be honored and respected and that their essential contribution to society may be highly esteemed.
Evangelization: Holy Rosary: That families, communities, and groups may pray the Holy Rosary for evangelization and peace.



Comments


More U.S.

The Feast of the Ascension is the Portal to Eternity Watch

Image of We really can participate in the Divine Nature - beginning now - and continuing for all eternity. We are in communion with God the Father, Son and Holy Spirit, and with one another.

By Deacon Keith Fournier

The Ascension invites us to reflect on who Jesus is - and who we are empowered to become in Him, beginning now and opening up into the life to come. He is indeed the Way, the Truth and the Life. (John 14:6) The Feast of the Ascension of the Lord Jesus helps to ... continue reading


LET US PRAY! National Day of Prayer calls on Americans to come together in prayer Watch

Image of

By Abigail James (CALIFORNIA NETWORK)

On April 17, 1952, President Truman initiated a law calling on the President to set a National Day of Prayer every year; a day where Americans can "turn to God in prayer and meditation at churches, in groups, and as individuals." In 1988, Congress specified the ... continue reading


President Obama's Declaration of a National Day of Prayer (FULL TEXT) Watch

Image of

By Catholic Online (CALIFORNIA NETWORK)

"Our country was founded on the idea of religious freedom," wrote President Barack Obama. "On National Day of Prayer, we rededicate ourselves to extending this freedom to all people." READ OBAMA'S FULL STATEMENTS BELOW: In times of steady calm and extraordinary ... continue reading


Cinco de Mayo, the Fifth of May: A Day to Celebrate Heritage and History

Image of On May 5, 1862 the smaller Mexican army, with older, more inferior weapons and equipment, defeated the French at Puebla, southwest of Mexico City.

By Fr Randy Sly

Cinco de Mayo currently has only a regional importance in Mexico. In the United States and other countries, however, the day has come to be known as a celebration of Mexican heritage and pride. Like St. Patrick's Day and Oktoberfest, one doesn't need to be of ... continue reading


Catholic woman heartlessly fired for refusing to support Scientology Watch

Image of Catholic woman denied pay raises and pressured to watch Scientology videos before being fired (Wikipedia).

By Kenya Sinclair (CALIFORNIA NETWORK)

Grecia Echevarria-Hernandez is a Catholic who was pressured to take part in Scientology at work. When she refused, she was passed up when raises were available and was eventually fired. LOS ANGELES, CA (Catholic Online) - Echevarria-Hernandez filed a wrongful ... continue reading


Captain James Cook wreckage discovered! Watch

Image of Legendary British explorer Captain James Cook's vessel is believed to have been discovered (John Webber).

By Kenya Sinclair (CALIFORNIA NETWORK)

Captain James Cook was a famous British explorer who commanded the HMS Endeavour from 1768 to 1771. Since it was intentionally sunk, its whereabouts fell into question - until now? LOS ANGELES, CA (Catholic Online) - According to CNN, researchers from  the Rhode ... continue reading


You won't believe why this ICONIC WWII image is being investigated! Watch

Image of Two amateur historians raised questions concerning a service member in the image (Corbis).

By Kenya Sinclair (CALIFORNIA NETWORK)

Two amateur historians believe one of the men in the iconic Mount Suribachi image was misidentified, prompting a Marine Corp investigation. LOS ANGELES, CA (Catholic Online) - The image, taken by the Associated Press' Joe Rosenthal, reveals the struggle six servicemen ... continue reading


Puerto Rico drowns in debt - What is the U.S. going to do about it? Watch

Image of Puerto Rico missed its first nearly $400 million bond payment (YouTube).

By Kenya Sinclair (CALIFORNIA NETWORK)

U.S. territory Puerto Rico defaulted its first payment of nearly $400 million - so what is the territory going to do? LOS ANGELES, CA (Catholic Online) - Puerto Rico has suffered a recession for the past decade, resulting in the government borrowing money from foreign ... continue reading


ISIS kills U.S. Navy SEAL in violent attack Watch

Image of ISIS breaks Peshmerga lins to kill U.S. Navy SEAL (navysealsmuseum).

By Kenya Sinclair (CALIFORNIA NETWORK)

A U.S. Navy SEAL was killed in the line of duty when ISIS forces pushed their way through a Kurdish Peshmerga line. LOS ANGELES, CA (Catholic Online) - "It is a combat death, of course. And a very sad loss," U.S. Secretary of Defense Ash Carter said during an official ... continue reading


'It was an escape:' father of Scientology founder tells all Watch

Image of Ron Miscavige, the father of Scientology leader David Miscavige, opens up (20/20)

By Kenya Sinclair (CALIFORNIA NETWORK)

Ron and Becky Miscavige escaped the California Scientology compound known as the "Gold Base" and have stepped forward to share their story. LOS ANGELES, CA (Catholic Online) - Scientology is a quiet religion shrouded in secrets - many of which are believed to be ... 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, Acts 18:9-18
9 One night the Lord spoke to Paul in a vision, 'Be fearless; speak out ... Read More

Psalm, Psalms 47:2-3, 4-5, 6-7
2 For Yahweh, the Most High, is glorious, the great king over all the ... Read More

Gospel, John 16:20-23
20 'In all truth I tell you, you will be weeping and wailing while the ... Read More

Saint of the Day

Saint of the Day for May 6th, 2016 Image

Bl. Edward Jones
May 6: Blessed Edward Jones and Anthony Middleton, ... Read More