May 2 (Bloomberg) — An association of retired public workers agreed to support Detroit's proposal to cut pensions as part of the city's plan to end its $18 billion bankruptcy, federal mediators involved in negotiations said in a statement.

The board of directors of the Detroit Retired City Employees Association voted to support the city's proposal that reduces pension and retiree health-care benefits, the mediators said. The association represents 8,000 retired city workers.

In order for the city to receive more than $800 million in state and private foundation money to shore up its two underfunded retirement systems, employees and retired workers have to vote in favor of the debt-adjustment proposal.

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