LANSING, Mich. -- Detroit's two pension funds will get $195 million from the state on Feb. 9.
A three-member board overseeing Michigan's contribution to Detroit's bankruptcy case approved the payment Monday. The money is intended to strengthen the pension funds and prevent cuts from going deeper than 4.5 per cent for retirees. It also prevents any sale of city-owned art.
Besides the state of Michigan, philanthropists, foundations and the Detroit Institute of Arts are giving money toward the $816 million rescue.
Several lawsuits filed against the state by unions and other parties have been dropped, a key condition to getting the $195 million.
Michigan Treasurer Kevin Clinton says the board created to oversee the payment has no other business. Detroit's bankruptcy ended on Dec. 10.
