An Illinois judge on Friday ruled a law intended to fix the pension crisis in the state violates the Illinois constitution. Sangamon Country Circuit Judge John Belz ruled in favor of state employees and retirees who sued to block the law. Last December state lawmakers passed the bill, which ...[read more]
The US Bankruptcy Court for the Eastern District of Michigan approved a plan on Friday to resolve Detroit's seven billion dollars of debt and return the city to solvency. The plan includes settlements regarding post-employment benefits claims, tax obligations, insurance, and "the Grand Bargain" ...[read more]
Bankruptcy is a process through which a person who is unable to pay his or her debts is granted relief from the courts by undergoing a supervised step-by-step repayment plan; many debts are partially paid as fairly as possible with the assets that the debtor has.
Many small US cities are ...[read more]
Michigan Governor Rick Snyder unveiled a new state budget on Wednesday that would allocate state funds to be used to cover Detroit workers' pensions, currently the subject of controversy in the city's bankruptcy proceeding. The plan sets aside $17.5 million annually for 20 years from funds the ...[read more]
Detroit on Friday filed a lawsuit in the US Bankruptcy Court for the Eastern District of Michigan seeking to invalidate the $1.44 billion of debt the city sold to finance by establishing "sham" service corporations to facilitate the debt sales, and claiming and that all contracts or obligations ...[read more]
02/05/2014: Michigan governor included Detroit's pension bailout in budget.
01/16/2014: Detroit 165 million dollar bankruptcy settlement rejected.
12/18/2013: Federal judge ruled Detroit bankruptcy deal too generous towards banks.
12/03/2013: Federal court ruled Detroit eligible for ...[read more]
The US Supreme Court ruled Wednesday in Ray Haluch Gravel Co. v. Central Pension Fund that, whether a claim for attorney's fees is based upon a statute, a private contract, or both, the pendency of a ruling on an award for fees and costs does not prevent a merits judgment from becoming "final" for ...[read more]
The Illinois General Assembly passed a bill on Tuesday that would reform the state's pension plan to lower future benefits for current state employees. The legislature amended the pension plan in an effort to cut spending and lower the state's debt, which currently includes about $100 billion in ...[read more]
At the height of the Great Depression, US President Franklin Roosevelt requested legislation to aid Americans in times of economic need. On August 14, 1935, Roosevelt signed the Social Security Act into law. The original Act provided benefits to workers upon retirement at age 65, and based the ...[read more]
The Employee Retirement Income Security Act is a complex piece of legislation that Congress passed in 1974 to ensure that the pensions of private sector employees had stability and protection. The legislation only applies to private companies, leaving public employees' pensions unprotected. When ...[read more]