EMERGENCY MANAGER

CITY OF DETROIT
ORDER No. 21
ORDER APPROVING PENSION FREEZE FOR CITY
EMPLOYEES
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 of2012 (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 P A 436; and
Pursuant to Section 9(2) of P A 436, the EM "shall act for and in the place and stead of'
the Detroit Mayor and City Council; and
Section 9(2) ofPA 436 also grants the EM "broad powers in receivership to rectify the
financial emergency and to assure the fiscal accountability of the [City] and the [City's] capacity
to provide Qr cause to be provided neBessary governmental serviees essential to the
public health, safety, and welfare;" and
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Further, Section 9(2) P A 436 prohibits,
Mayor and City from
are
Pursuant to 10(1) ofPA 436, the to the appropriate local
....... 'vL\ .. ,u and appointed officials and employees, contractors of the local
the [EM] considers to accomplish the purposes of this act;" and
Section 1 )(a) ofPA 436 authorizes the EM any charter
'A,'\rr,'ru " to a[ a ]nalyze and circumstances contributing to the
gm/enamem and to correct condition;" and
Section 1 )(b) P A 436 authorizes the "notwithstanding any charter provision
to the "to "[a]mend, revise, approve, or disapprove the budget of the local
amount appropriated or expended;" and
Section 1 )(d) of 436 authorizes EM "notwithstanding any
to the contrary," to H[r]equire and approve or disapprove, or amend or revise, a plan
all outstanding obligations local government;" and
12(1)( dd) P A 436 authorizes the EM, "notwithstanding any charter provision
to the contrary," to
and responsibilities
the adoption,
government" as provided
Compiled
for and on behalf of the local government, all other
the chief administrative officer and body
or resolutions of local
279 of 1909,
and
ofPA 436 the EM, "notwithstanding any charter provision
other action or power or authority any OITIlCer
pn<>rn-np,'"I" board, commission, or other uH"'HUL entity of the local government,
UlnPTn."r "'"L""'"'_v'" or appointed, to the operation of local government.
[EM] shall be superior to and of of the
and
to Section 1 the
authority of the chief administrative HTT1'f'pr on
local under
m [EM])."
At current time, pursuant to Section 12 of P A Emergency Manager
that implementing
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and will enhance the
to
is hereby ordered
L as of December 31, 2013 (the
Detroit will be eligible to
(HGRS"), and GRS
Hrp,P7P Date"), no employees hired or rehired by
in the General System of the
closed to all new
as of the Freeze Date, benefit accruals for GRS members
of credited Average Final as
hired or rehired by and no future
to or accepted by such plan after payroll date
.. rt>A7t3 Date, Fund is closed to new "'''''' .... I''.uo,''"
employees. The Fund
contributions as soon as administratively practicable
the applicable payroll dates that occur in
5. Members who are not vested in a pension under Article II of Chapter 47 Detroit
Code of Ordinances or in an Contribution Account under Article III of Chapter
Code of Ordinances as the Date not to
U""''''UL.:> under the GRS.
as of the
1..I"' . "'1\.)'H improvement factor (escalator) is vln.H"""',""'"
and no future cost of ustments shall be made with to
" ... "vue" paid or payable to
Effective as January 1,
AU<-.. ".)'U plan that is uU'vU'-"''''-l
Revenue Code (the
8. or a
9.
1 unenforceable, or
COl1nOCmellt shall be deemed
11. This Order is <"'!-'!-",'1".",,, immediately the execution below.
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12. The EM may modify, amend, rescind, replace, supplement, or otherwise revise this Order
at any time.
1 Order shall be distributed to
Council all
cc: State of Michigan Department of Treasury
Dave Bing, Mayor
Michael Duggan, Mayor-elect
Mf:mt)erS of Detroit Council
Members of Detroit City Council-elect
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