Detroit pension proposal would shut out new hires

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DETROIT (AP) - State-appointed emergency manager Kevyn Orr wants to overhaul Detroit's two pension systems by shutting out new workers and freezing benefits for current members.

A draft of the proposal given last week to the General Retirement System also would move the city to a 401(k)-style system that has become the norm in the private sector and calls for ending future contributions by Dec. 31.

In July, Orr made Detroit the largest U.S. city to file for bankruptcy protection. He has said Detroit's underfunded obligations of about $3.5 billion for pensions and $5.7 billion for retiree health coverage are part of the city's $18 billion debt load.

A spokesman says a plan for retired police and firefighters still is being developed, but will resemble the proposal for non-uniformed workers.