Judge Steven W. Rhodes ruled that federal law usurps state regulations that prohibit slashing retirees’ benefits and that pensions are no different than any other bill that a city owes but doesn’t have funds for pay.
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A Federal bankruptcy court judge has cleared the way for Detroit to cut payments for retired city workers. So reports Newsweek.
Judge Steven W. Rhodes ruled that federal law usurps state regulations that prohibit slashing retirees’ benefits and that pensions are no different than any other bill that a city owes but doesn’t have funds for pay.