EMERGENCY MANAGER

CITY OF DETROIT
ORDER No. 23
ORDER MODIFYING ORDER NO. 21
By THE AUTHORITY VESTED IN THE EMERGENCY MANAGER
FOR THE CITY OF DETROIT
PURSUANT TO MICHIGAN'S PUBLIC ACT 436 OF 2012,
KEVYN D. ORR, THE EMERGENCY MANAGER,
ISSUES THE FOLLOWING ORDER:
Whereas, on March 28, 2013, Michigan Public Act 436 of 2012 ("PA 436")
became effective and Kevyn D. Orr became the Emergency Manager ("EM") for the City
of Detroit (the "City") with all the powers and duties provided under PA 436; and
Pursuant to Section 9(2) of PA 436, the EM "shall act for and in the place and
stead of' the Detroit Mayor (the "Mayor") and the Detroit City Council (the "City
Council"); and
Section 9(2) of PA 436 also grants the EM "broad powers in receivership to
rectify the fmancial emergency and assure the fiscal accountability of the [City] and the
[City's] capacity to provide or cause to be provided necessary governmental services
essential to the public health, safety, and welfare;" and
Further, Section 9(2) of PA 436 prohibits, during the pendency of receivership,
the Mayor and City Council from exercising "any of the powers of those offices except as
may be specifically authorized in writing by the emergency manager or as otherwise
provided by [PA 436] and are subject to any conditions required by the emergency
manager;" and
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Pursuant to Section I O( I) of P A 436, the EM may "issue to the appropriate local
elected and appointed officials and employees, agents, and contractors of the local
government the orders the emergency manager considers necessary to accomplish the
purposes of this act;" and
On December 26, 2013, the EM sent letters to certain City unions which represent
employees eligible to participate in the General Retirement System of the City of Detroit
("GRS"), exclusive of unions which have entered into collective bargaining agreements
with the City (i.e., the Police Officers Association of Michigan, the International Union
of Operating Engineers Local 324, and the International Brotherhood of Teamsters Local
214) and bargaining units covering employees who work in the Detroit Department of
Transportation, making modifications to the City Employment Terms implemented by
the City on July 18,2012 (collectively, the "EM's December 26, 2013 Letters"); and
On December 30, 2013, the EM issued EM Order No. 21, Approving Pension
Freeze for City Employees ("Order No. 21"). Pursuant to Order No. 21, effective as of
December 31 , 2013 (the "Freeze Date"), no employees hired or rehired by the City were
eligible to participate in the GRS, and the GRS would be closed to all new employees.
Also, pursuant to Order No. 21, the EM instructed the City to establish a new qualified
defined contribution plan intended to meet the requirements of Section 401(a) of the
Internal Revenue Code (the "40 I (a) Plan").
By the express terms of Order No. 21, the EM reserved the right to "modify,
amend, rescind, replace, supplement or otherwise revise" the Order "at any time."
It is hereby ordered that:
I. The implementation of Order No. 21 is hereby suspended until further EM Order
or other written directive from the EM's office.
2. The implementation by the EM's December 26, 2013 Letters of modifications to
Article 48 of the City Employment Terms dated July 18, 2012 is hereby
suspended until further EM Order or other written directive from the EM's office.
3. Except as expressly modified, amended, and revised herein, the terms and
conditions implemented by the EM's December 26, 2013 Letters shall remain
unchanged.
4. If the EM revokes this Order, the effective dates of the Freeze Date and the 401 (a)
Plan shall be reinstated as though this Order was never issued.
5. Order No. 21 and the EM's December 26, 2013 Letters are modified, amended,
and revised solely in accordance with this Order.
6. Nothing in this Order shall be interpreted as contrary to Federal Law.
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7. This Order is effective immediately as ofthe date of execution below.
8. The EM may modifY, amend, rescind, replace, supplement or otherwise revise
this Order at any time.
9. This Order shall be distributed to the Mayor, members of the City Council and all
City department heads.
Dated: February 3, 2014
E ergency Manager
City of Detroit
cc: State of Michigan Department of Treasury
Mayor Michael Duggan
Members of Detroit City Council
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