Jan. 9 (Bloomberg) — Detroit, struggling to provide its 700,000 residents with basic services, was sued by retired workers including police and firefighters who are seeking to block the bankrupt city from unilaterally cutting their health- care benefits.
The retirees said the city's decision to reduce funding of vested health-care benefits by 83 percent, starting in March, will force retirees to spend money out of pocket to replace the coverage, according to a filing today by representatives of the workers in federal bankruptcy court in Detroit.
Some of the retirees live near the poverty line, while others are older and incapable of returning to work or were injured in the line of duty, according to the filing. The retirees seeks to block the city from dropping its state and federal "contractual obligation" to provide them with health- care benefits, according to the filing.
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