DETROIT--(BUSINESS WIRE)--A new organization has formed to fight for the pension and tax treatment of retired Detroit Police Department (DPD) personnel. Within 2 weeks, the Retired Detroit Police Members Association (RDPMA) has attracted nearly 300 members.
The main concern with Detroit’s Chapter 9 that put RDPMA’s incorporation on the fast track is ensuring equal representation for all police department personnel. “Another organization representing DPD personnel and Detroit fire fighters retained the same counsel as the Detroit Retired City Employees Association. This is a conflict as unlike the retired City of Detroit general employees, the police department retirees do not have social security benefits as supplemental income and are not eligible for Medicare,” says co-founder Brenda Goss Andrews, president of the new association.
Andrews states, “While the imminent threat of Detroit’s bankruptcy accelerated the formation of our group, there have been many events—nationally and locally— that led to the forming of RDPMA. One example is the 2011 major rewriting of Michigan’s tax code and the subsequent income tax on pension benefits of retirees under the age of 65.”
Strobl & Sharp attorney, Lynn Brimer, legal counsel for RDPMA, explains, “It is not unusual in bankruptcy proceedings for the members of a creditors committee to have separate and distinct interests. I believe it is critical for the police retirees to have RDPMA at the table. RDPMA is not affiliated with retirees in the general retirement system. If benefits are reduced through the Detroit Chapter 9, general retirees will still have a safety net in social security and Medicare.”
“Detroit is nationally significant because there is no precedent where the bankruptcy court has issued an opinion with respect to the authority of a municipality to reduce pension and retiree benefits for police and firefighters. Prior cases have reached negotiated settlements between the municipalities and the retirees,” emphasizes Brimer.
“If there is a judicial determination in Detroit, the door swings open for other municipalities to reduce retiree pensions as well,” says Brimer.
“While the goal is to negotiate a settlement, the general fear is that Detroit officials say the underfunding of the pension funds is so significant and therefore unsecured pensions constitute such a large portion of Detroit’s debt that a settlement will not be possible,” says Brimer.
RDPMA plans to collaborate with all retiree groups and hopes that everyone can work together to craft the best resolution for all retirees and the City of Detroit. “We want to work side-by-side with the other organizations,” says Andrews.
“In good faith we put our lives on the line, made personal sacrifices and made financial decisions based on our constitutionally promised pension benefits. Our pensions should not be cut at all,” declares Andrews.
About RDPMA
The nonprofit Retired Detroit Police Members Association (RDPMA) formed on July 23, 2013. The non-union group represents retired Detroit police department (DPD) personnel and the surviving spouses of deceased DPD personnel. The organization’s sole mission is to advocate for the members of the RDPMA concerning the preservation, protection and enhancement of their pensions, health care, and other benefits, in the public square and in judicial proceedings, including any bankruptcy actions that may affect their rights to continue to receive their full benefits. For more information go to www.rdpma.org.