A stunning new actuary report on Detroit’s pension implosion has revealed that Detroit trustees doled out nearly $2 billion in undisclosed holiday “bonuses” to Detroit workers and retirees negotiated by the city and its unions.
Internally, officials called the bonuses “13th checks.”
“People were having a hard time, living hand-to-mouth, and we thought we would give them some extra,” Detroit pension trustee spokesperson Tina Bassett said.
Almost everyone received a bonus. “Most of the trustees on Detroit’s two pension boards represent organized labor, and for years they could outvote anyone who challenged the payments,” reports the New York Times.
Financial journalist Megan McArdle, writing for Bloomberg, says the findings left her “speechless” and that “it’s hard to overstate how bad this is.”