Two Detroit pension funds sued the city's emergency manager and the governor of Michigan, asking that a court find a bankruptcy filing would conflict with the state's constitutional protection of public retirees' rights.
The General Retirement System and the Police and Fire Retirement System of the City of Detroit filed the lawsuit yesterday in state court in Ingham County, Michigan, seeking a judgment that Governor Rick Snyder can't authorize a bankruptcy filing that could reduce pension benefits.
The funds also sued Detroit Emergency Manager Kevyn Orr, who was appointed by Snyder in March to lead the city out of a fiscal crisis that has put it on the brink of a Chapter 9 municipal bankruptcy.
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