POA Information


Plan of Adjustment Information

Download Combined Plan Document  »

(Exhibit D to Emergency Manager Order No. 44.  The Combined Plan for GRS was amended and restated as of December 8, 2014, effective July 1, 2014.)

The latest information from the RSCD June 10th informational meeting.

This information is intended to provide an explanation of the benefit adjustments that were made to your March 1st retirement benefit. The General Retirement System of the City of Detroit implemented the benefit adjustments required pursuant to the City’s Confirmed Plan of Adjustment (the “POA”) that was effective December 10, 2014. 

The required adjustments were reflected in your March 1, 2015 retirement benefit payment. These adjustments were required in accordance with the November 12, 2014 Confirmation Order entered in the U.S. Bankruptcy Court.

The GRSD website is regularly updated with the latest information and resources regarding the Plan of Adjustment and how it may affect you. Please contact us through the website or at (800) 339-8344/(313) 224-3362 with questions or for information related to your individual benefits.

Bankruptcy Implementation Pension Benefit Adjustments

COLA Reduction.

Prior to the City’s bankruptcy, the Retirement Plan provided for an annual cost of living adjustment (“COLA”). This payment was annually applied to the July benefit payment which is paid on the first of August (i.e., benefit payments are paid monthly in arrears on the first of the month for the proceeding month).

The POA eliminates all future COLA benefits effective July 1, 2014. While the bankruptcy was pending, the Retirement System paid COLA, up to 2.25%, commencing with your August 1, 2014 benefit payment. This COLA will be eliminated starting with the March 1, 2015 benefit payment.

There will be NO recovery of the COLA payments that were paid from August, 2014 through February, 2015; nor will COLA benefits granted prior to July 1, 2014 be eliminated.

Accordingly, your March 1, 2015 retirement benefit payment will be reduced by the applicable monthly COLA benefit paid since August, 2014.

4.5% Benefit Reduction.

The POA also requires that after reduction of the above noted COLA amount, your base retirement benefit be further reduced by a 4.5% Benefit Reduction. The 4.5% Benefit Reduction applies only to the pension benefit amount, not to any annuity payments made as a result of a retiree’s election at the time of retirement to annuitize all or a portion of their ASF Account balance. Your March 1, 2015 retirement benefit payment will reflect this 4.5% Benefit Reduction.

ASF Recoupment.

If you are subject to the Annuity Savings Fund (“ASF”) Recoupment of “excess earnings” under the POA; and you did not have sufficient ASF balance to cover the Recoupment; and you DID NOT elect the lump sum Cash Option, your March 1, 2015 pension benefit payment will be reduced by the monthly deduction amount previously provided to you.

The combined 4.5% Benefit Reduction and ASF Recoupment monthly reduction shall not exceed 20% of your current accrued pension (excluding the COLA deduction noted above). If you elected the ASF Recoupment Cash Option, you should have already received your payment notification and instructions. For those retirees that timely elected the Cash Option, ASF Recoupment Cash Payments are due on or before March 24, 2015.

Income Stabilization Fund:

If you timely filed an application for the Income Stabilization Fund (“ISF”) program and were determined as an Eligible Pensioner by the Michigan Department of Treasury, your March 1, 2015 pension benefit may include restoration of all, or a portion of, the 4.5% Benefit Reduction and/or COLA reduction. Eligibility was based upon total household income equal to, or less than, 140% of the Federal Poverty Line in 2013.

The Treasury Department calculated the amount of benefit you will receive, if any, under the State Contribution Agreement, as an Income Stabilization Benefit amount or an Income Stabilization “Benefit Plus” amount. An Income Stabilization Supplemental benefit, not greater than your 4.5% Benefit Reduction, is paid however, only if your 2013 total household income (based upon household size) is below 130% of the 2013 Federal Poverty Level.

An Income Stabilization Benefit Plus is paid, or may be paid at some time in the future, if your 2013 household income indexed for inflation is less than 105% of the Federal Poverty Level in the applicable year. The Benefit Plus may restore the cumulative COLAs and 4.5% Benefit Reductions as a result of the City’s bankruptcy.

Contact RSCD for more information:

LocationRSCD Location:
One Detroit Center
500 Woodward Ave., Suite 3000,
Detroit, MI 48226
Call or FaxCall or Fax:
Phone: (800) 339-8344 / (313) 224-3362
Fax (313) 224-3522


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