Traverse City Record-Eagle

October 3, 2013

Judge lifts stay on suit over extra checks


Traverse City Record-Eagle

---- — DETROIT — The federal judge overseeing Detroit’s bankruptcy petition has granted a union’s request to allow it to continue a fight for extra pension checks.

Judge Steven Rhodes decided Wednesday to lift an automatic stay on a suit by Michigan Council 25 of the American Federation of State, County and Municipal Employees.

In 2011, the City Council ended the pension system practice of issuing bonus checks. The union says that it should have been handled in collective bargaining.

A labor judge earlier ruled the City Council was wrong when it cancelled the practice called 13th check.

The General Retirement System says in an affidavit that it gave about $1 billion in payouts to active employees and retirees from 1985 through 2007.