TCTI: Too Crazy To Ignore
Dave Ross
AP: 47256a6b-b8d7-4a3a-9551-8487ba6d8527
As they've learned in Detroit, despite this idea that a pension is a guarantee, it turns out to be like any other promise. It's only as good as the organization that backs it. (AP Photo/Paul Sancya, File)

Can retirement money just vanish?

It was the latest humiliation for the city of Detroit.

"A shocker in the courtroom! The Michigan constitution does not protect pensions," exclaimed WWJ's Charlie Langton after a judge ruled that the City of Detroit, $18 billion in debt, can go into bankruptcy.

Which means the pensions and health plans of former city employees could be cut to pay Detroit's bills.

That's bad news for former workers like David Sole, "We think taking a dime or a dollar is too much. The banks are considered secure creditors - were garbage."

And it's bad news for David Allen, a firefighter who was injured when a building collapsed on him, "I feel betrayed. I feel short-changed, I feel angry."

Angry - because he and other Detroit retirees could see their pension checks cut by 84 percent from what they expected to get.

It's down to a choice between paying the people who used to work for the city, or paying the people the city needs now.

How bad is it? "The short-handed police take 58 minutes on average to respond to a call for help here, and 40 percent of the street lights are out," reports CBS Correspondent Dean Reynolds.

And the message to Detroit's 20,000 retirees - and to present and future retirees anywhere - is pretty simple: despite this idea that a pension is a guarantee, it turns out to be like any other promise. It's only as good as the organization that backs it.

Dave Ross, KIRO Radio Morning News Anchor
Dave Ross hosts the Morning News on KIRO Radio weekdays from 5-9 a.m. Dave has won the national Edward R. Murrow Award for writing five times since he started at KIRO Radio in 1978.
Top Stories

  • Obama Visits Oso
    President Obama says the whole country is thinking of the Oso mudslide victims

  • Suing The Seahawks
    A Seahawks fan sues for $50 million over limiting playoff ticket sales

  • Imminent Threat
    Scientists working to save Earth from approaching asteroids
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know a student who stands out in the classroom, school and community?
Help make their dreams come true by nominating them for a $1,000 scholarship and a chance to earn a $10,000 Grand Prize. Brought to you by KIRO Radio and Comprehensive Wealth Management.

Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.