Get more! Sign up for PLANSPONSOR newsletters.
Benefits August 5, 2011
Detroit Police Approve Move to 403(b)
August 5, 2011 (PLANSPONSOR.com) – Detroit Mayor Dave Bing reached what he called a landmark agreement with the Detroit Police Officers Association (DPOA) to change their retirement benefit from a defined benefit pension plan to a 403(b).
Reported by
Rebecca Moore
The move is expected to save the city more than $50 million over five years, according to the Detroit Free Press. The news report said the agreement marks the first time a Detroit municipal union has approved such a change.
On its Web site, the DPOA said less than 1% of the membership voted against the agreement.
The Free Press reports that Bing said he hoped the pact will compel other unions to agree to concessions on health care and pension benefits — two of the city’s largest expenses — as part of a larger plan to save the city $121 million a year and stave off state appointment of an emergency manager (see Detroit Pension Boards Challenge New Emergency Powers Law).