Kirjoittaja Aihe: Detroit eyes freezing pensions amid probe as evidence of possible fraud come to  (Luettu 1176 kertaa)

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DETROIT — Detroit’s emergency manager proposed freezing pension benefits for some current city workers starting in 2014 and will launch a two-month probe into the city’s dysfunctional and error-prone handling of employee benefits.

A copy of Kevyn Orr’s proposal was released by one of Detroit’s two pension boards on Thursday, the same day the city’s auditors posted a report that shed light on how Detroit overpaid benefits, including unemployment compensation for almost two years to 58 people who never worked for the city.

The report also raised the question of whether there was fraud in doling out some unemployment claims. The auditors’ review of nearly two years of unemployment compensation claims found that 13% were likely fraudulent and another 36% were highly questionable and required investigation.

Tackling the city’s pension overhang is a critical task for Orr, who is trying to restructure Detroit’s US$18.5-billion in debt and long-term liabilities after the city filed for the largest municipal bankruptcy in U.S. history on July 18.


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