Also in this playlist...
This transcript is automatically generated
-- Kate Rogers is here in person with foxbusiness.com.
We're talking about other cities that might be affected me talk about this a lot.
By a pension system and a retiree health care system that are unknown funded so it's not exactly it's very scary and -- on Wednesday a bankruptcy judge blocked.
Union and of retirees.
-- -- to attempts to.
Pension benefits and -- -- could it be -- the judge says while it's not technically unconstitutional so we're going to move forward with this restructuring done.
Exactly so this has been saying while our pensions might not be safe and it has other people across the country saying while it happened in Detroit -- happen to it's very scary what what cities.
Are we looking -- Well exactly Chicago's agree exam by other states that could potentially be hot water of course -- can't declare bankruptcy but.
California new York New Jersey -- on the -- legally I'm making their pension -- that means workers are paying into the system in -- state isn't necessarily holding up its end of the bargain so this is really scary for people there.
Experts say it could have been but Detroit is really case -- of itself because it was hit by a perfect storm of corruption.
Bad economics and an inability to raise taxes among its residents meaning the governor will be able to -- more money and make its end of the bargain.
-- -- payments and from reading it seems like taxes in different where.
Pretty high they know they have that big population and exactly so they couldn't go any higher because that means that 700000 -- meaning people within the city would get out of there and move across in my mind.
I let's -- some fast facts on the traits pension woes 21000 retirees their pensions at stake here that's the biggest absolutely amazing nine point two billion dollars if you take -- account -- pension liabilities and a retiree health care costs there five point seven billion.
Pew research couple months can do great study.
And it's the retiree health care that bit nationally yeah that's more of a concern than the pensions -- exactly and more than a hundred million dollars.
It totally is and a lot of their retirees I spoke to that were collecting their pensions are ready in Detroit that's what they're really scared of losing because a lot of -- -- 616263.
They don't wanna start cashing in right Social Security benefits are not eligible for Medicare yet so it's scary for them to potentially -- -- health -- benefit what about Social Security benefits for different -- well that's the thing hearing kind of they're saving grace if their pensions are to be touched people in Detroit can actually still collect Social Security benefits whereas in other states like Massachusetts.
Government workers don't pay into the Social Security system so they're not able to collect that so that if push comes to -- their pensions get caught.
They will have that extra kind of safety net of income coming okay.
I guess that's the silver lining if we're really if -- on -- silver lining here that could be it for the pension company to we have an I don't know if you know this company on the spot here.
Estimates for the average Detroit resident how much that -- -- and how much that Social Security check is yes so I do have the pension numbers the average.
Up and it still went -- it was here about -- being so bloated.
-- -- people -- the particularly the average pension collections about 12100 dollars a month it's not a ton of money the pensioners I spoke to were on the higher and there around.
You know 3000 dollars month pretax sell -- in a perfect -- well if you get that.
12100 plus the Social Security so you have a nice time exactly but if you -- file early for Social Security you start getting smaller payments and have to continue for -- duration so.
If they lose part of their pension or 63 and they file early they could be ending up with less money.
We're gonna put your article on all of this up on the screen how many get to some taxes to do that.
And there's no reason -- government should operate any differently I think that's the message that all of these -- -- cities showing Uncle Sam.
And it George for a -- says pick to Detroit to Canada.
-- the club while it's typically devil's advocate though they do.
Take those jobs under the pretense of getting that in some of the people I spoke to paid into the system for thirty yeah got one more salary and -- and they've paid intuit and and it's not -- it's scary and disappointing for them in Detroit's case when the auto maker.
When he out of makers were filing for bankruptcy they should've been more worried than they -- yes and greed we -- coming okay -- -- dignity of our Oregon -- guys -- tiebreaker with honor Gary.
Filter by section