Detroit to Speed Up Pensions’ Investment TalksAugust 13, 2013 – In The News
Michael Sweet was quoted in the FundFire article "Detroit to Speed Up Pensions’ Investment Talks." While the full text can be found in the August 13, 2013, issue of FundFire, a synopsis is noted below.
According to attorneys, Detroit’s Chapter 9 bankruptcy proceedings are so complex that they may deter other cities from filing for bankruptcy. Instead, they may be forced to negotiate earlier over pensions to help avoid insolvency.
“Once there is some clarity through the Detroit case, I have to believe that will set a framework that will allow [underfunded pension funds] to negotiate without going through a bankruptcy,” Michael Sweet said, noting that Chapter 9 bankruptcy is extremely expensive.
“People are watching very closely because there are pension plans across the country that are underfunded, and what happens in Detroit will send a signal about what might happen to your pension plan,” Sweet said.