Detroit EM - Order No 21 - Order Approving Pension Freeze for City Employees

8/11/2019 Detroit EM - Order No 21 - Order Approving Pension Freeze for City Employees

1/4

EMERGENCY M N GER

CITY

O

DETROIT

ORDER

No.

21

ORDER PPROVING PENSION FREEZE FOR CITY

EMPLOYEES

BY THE AUTHORITY VESTED IN THE EMERGENCY MANAGER

FOR THE CITY OF DETROIT

PURSUANT TO MICHIGAN'S PUBLIC ACT 436 OF 2012,

K VYN D

ORR, THE EMERGENCY MANAGER,

ISSUES THE FOLLOWING ORDER:

Whereas on March 28,2013, Michigan Public Act 436

of2012

(PA 436 ) became

effective and Kevyn D

Orr

became the Emergency Manager ( EM ) for the City ofDetroit (the

City ) with all the powers and duties provided under P A 436; and

Pursuant to Section 9(2)

of

P A 436, the EM shall act for and in the place and stead of

the Detroit Mayor and City Council; and

Section 9(2)

ofPA

436 also grants the EM broad powers in receivership to rectify the

financial emergency and to assure the fiscal accountability

of

the [City] and the [City's] capacity

to provide r cause to

be

provided neBessary governmental serviees essential to the

public health, safety, and welfare; and


2/4

Further, Section 9(2) P A 436 prohibits,

Mayor and City from

are

Pursuant to 10(1)

ofPA

436, the to the appropriate local

.......

vL\ ,u

and appointed officials and employees, contractors of the local

the [EM] considers

to

accomplish the purposes of this act; and

Section 1 )(a) ofPA

436 authorizes the EM any charter

'A, ' \ r r , ' ru to a[a]nalyze and circumstances contributing to the . u H U i ~ H : H

gm/enamem and

to

correct condition; and

Section )(b) PA 436 authorizes the notwithstanding any charter provision

to the

to

[a]mend, revise, approve, or disapprove the budget

of

the local g m i e I 1 l I m ~ n I ,

amount appropriated or expended; and

Section )(d) of 436 authorizes

EM

notwithstanding any

to the contrary, to H[r]equire and approve or disapprove, or amend or revise, a plan

all outstanding obligations local government; and

~ e C l [ l O n 12(1)(dd)

PA 436 authorizes the EM, notwithstanding any charter provision

to the contrary, to

and responsibilities

the adoption,

government

as

provided

Compiled

for and on behalfof the local government, all other

the chief administrative officer and body

~ L L ' ~ U ' ' ' ' , , ' '

or resolutions

of

local

279

of

1909,

and

ofPA

436

the EM, notwithstanding any charter provision

other action or

power or authority any OITIlCer

pnrn-np,' I board, commission, or other uH 'HUL entity

of

the local government,

U l n P T n . r

' L ' '_v' or appointed, to the operation of local government.

[EM] shall be superior to and of of the

and

to

Section

the

authority

of

the chief administrative

HTT1 f pr

on

local under

m [EM]).

At current time, pursuant to Section

12

of P A

Emergency Manager

that implementing

2


3/4

and will enhance the

to

is hereby ordered

L

as

of

December 31, 2013 (the

Detroit will

be

eligible to

(HGRS ), and GRS

H r p P 7 P Date ), no employees hired or rehired by

in the General System of the

closed to all new

as of the Freeze Date, benefit accruals for GRS members

of credited Average Final as

hired or

rehired

by

and no future

to or accepted by such plan after

payroll date

rt>A7t3

Date, Fund is closed to new

''''''

I' '.uo,' '"

employees. The Fund

contributions as soon as administratively practicable

the applicable payroll dates that occur in

5. Members

who

are not vested in a pension under Article II of Chapter 47 Detroit

Code of Ordinances or in an Contribution Account under Article III of Chapter

Code of Ordinances as the Date not to

U ' ' '' UL . :>

under the GRS.

T T P ' ~ T . r p as of the L _ ~ ~ ~ ~

1..I ' . ' 1 \ . ) 'H improvement factor (escalator) is vln .H ' , '

and no future cost

of

ustments shall

be made

with to

... vue

paid or payable to

Effective as January

1,

AU { ' t 1

COl1nOCmellt shall be deemed

11. This Order is


4/4

12. The EM may modify amend rescind replace supplement or otherwise revise this Order

at any time.

1 Order shall be distributed to

Council all

cc: State o Michigan Department o Treasury

Dave Bing Mayor

Michael Duggan Mayor-elect

Mf:mt erS o Detroit Council

Members o Detroit City Council-elect

4

Documents

Detroit EM - Order No 21 - Order Approving Pension Freeze for City Employees