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 May 2015
Universal:
That, rejecting the culture of indifference, we may care for our neighbours who suffer, especially the sick and the poor.
Evangelization: That Mary's intercession may help Christians in secularized cultures be ready to proclaim Jesus.


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


Comments


More U.S.

Rick Santorum Announces His Candidacy saying - It is Time to Take Back America Watch

Image of Rick and Karen Santorum

By Keith A Fournier

There is something which many in the main stream U.S. media do not know, here it is - not many people are listening to them anymore. However, they will listen to this song. And, they will understand it. The sentiment it captures will encourage the heart of a ... continue reading


Treasure hunters claim to uncover $2 million of missing Confederate gold in Lake Michigan shipwreck Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

Treasure hunters claim they discovered $2 million worth of gold, originally stolen from the Confederates after the Civil War, in a Lake Michigan Shipwreck. The hunters, Kevin Dykstra and Frederick J. Monroe said they discovered a 19th Century tug boat off of Frankfort, ... continue reading


Woman finally meets man with her dead brother's transplanted face Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

Transplant recipients do not normally meet the families of their donors. An exception was made in the case of Rebekah Aversano, who met the man with the transplanted face of her deceased brother for a strange, touching homecoming. LOS ANGELES, CA (Catholic ... continue reading


President Obama meets with ISIS executed journalist Steven Sotloff's family during Florida trip Watch

Image of Steven Sotloff had reported from across the Middle East and covered events in Libya for Time Magazine.

By Catholic Online (NEWS CONSORTIUM)

United States President, Barack Obama met with the family of slain American journalist Steven Sotloff during his trip to Miami. Islamic State militants beheaded Sotloff last year. LOS ANGELES, CA (Catholic Online) - Obama met with Sotloff's parents, Art and ... continue reading


Michael Jackson's 'Neverland Ranch' up for sale for $100 million Watch

Image of Real-estate investment firm Colony Capital bought the note in 2008 for $23 million and put the title into a joint venture it formed with the pop star.

By Catholic Online (NEWS CONSORTIUM)

Late pop music superstar, Michael Jackson's famous retreat, Neverland Ranch is now up for grabs at $100 million. The former fantasyland currently lives under the name "Sycamore Valley Ranch." Located 40 miles from Santa Barbara in Los Olivos, the property spans ... continue reading


ANTHRAX IS BACK: U.S. Military accidentally ships live anthrax Watch

Image of Anthrax contaminants taken from building in Trenton, NJ in 2001. (Times staff photo by Jane Therese)

By Atarah Haely (NEWS CONSORTIUM)

Some samples negligently sent by the U.S. Military contained live anthrax. Four lab workers from the United States and about 22 overseas, who come in contact with the shipment, are placed into post-exposure treatment, according to a defense official. MUNTINLUPA, ... continue reading


Baltimore bloodshed continues with unbelievable violence over the holiday weekend Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

May has proved to be the most dangerous and deadliest month Baltimore has witnessed in more than 50 years. There were more than two dozen shootings over the Memorial Day weekend alone; city police have never been busier. Community leaders hope the members will come ... continue reading


BACKWASH: California water officials consider repurposing sewage into drinking water Watch

Image of Unlike non-potable reuse, where treated sewage is used to irrigate crops, parks or golf courses - direct potable reuse takes treated sewage effluent and purifies it so it can be used as drinking water.

By Catholic Online (NEWS CONSORTIUM)

While it's "doable," few people in California are actually voicing any enthusiasm. Stricken by a crippling drought, water officials are going through some highly popular alternatives - and repurposing sewage water into drinking water is one of them. LOS ... continue reading


Gallup poll shows that one in four Americans not gay Watch

Image of Only 3.8 percent of Americans self-identify as gay, lesbian or transsexual.

By Matt Waterson (NEWS CONSORTIUM)

As Gay rights movements continue to disrupt society and political life, poll reveals that gay and lesbians are not as common in the United States as previously perceived. LOS ANGELES, CA (Catholic Online) - A new Gallup poll conducted in early May has revealed that ... continue reading


World's oldest woman reaches 116-years-old! Watch

Image of

By Talia Ramos (NEWS CONSORTIUM)

World's oldest woman, Jeralean Talley has added another year to her life - the world declared she turned 116 last weekend. Talley and her family, friends, the Inkster mayor and Congressman Conyers, delivered a message from President Barack Obama, celebrating her ... 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, Sirach 51:12-20
12 And therefore I shall thank you and praise you, ... Read More

Psalm, Psalms 19:8, 9, 10, 11
8 The precepts of Yahweh are honest, joy for the ... Read More

Gospel, Mark 11:27-33
27 They came to Jerusalem again, and as Jesus was ... Read More

Saint of the Day

Saint of the Day for May 30th, 2015 Image

St. Joan of Arc
May 30: St. Joan of Arc is the patroness of soldiers and of France. On ... 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