Jan. 23 (Bloomberg) — Michigan would pay $350 million over 20 years to reduce bankrupt Detroit's pension liabilities under a deal struck by Governor Rick Snyder and lawmakers.

The money would be in addition to $330 million that nine foundations pledged through bankruptcy-court mediation to reduce city pension cuts and to shield Detroit's art collection from a sale to pay $11.5 billion in unsecured debt. The money should be linked to a broader settlement that would protect the masterworks, Snyder said yesterday at news briefing in Lansing.

Snyder, a Republican, also called for independent management of Detroit's retirement system, which is run by two appointed boards. He declined to say how that might occur, though he said it wouldn't necessarily be through state control.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.