By Ben Solis
Gongwer News Service
The Department of Treasury was voluntarily dismissed from lawsuit brought by a group of Detroit retirees who sued state agencies over a legislative appropriation that would have allowed associations to seek grants managing retiree future health care benefits following the city’s bankruptcy.
In an order signed Wednesday by Court of Claims Judge Christopher Yates, Treasury and the plaintiffs agreed to dismiss the department from Detroit Police & Fire Retiree Health Care Trust v. Department of Labor and Economic Opportunity (COC Docket No. 24-000097). The order notes that the dismissal was only applicable to Treasury and not LEO or the Department of Technology, Management and Budget, who remain as named defendants.
The dismissal was voluntary and agreed to by stipulation on October 11. Yates also said the department was dismissed without prejudice, meaning the claims could be revived at a later time.
The complaint alleges the grants in question, as appropriated, did not reach the pockets of those who needed the funding.
Health care benefits for retired police officers, firefighters and other municipal retirees were cut significantly when the city went bankrupt a decade ago.
Part of that deal was the formation of voluntary employees’ beneficiary associations to manage existing retirees’ future health care benefits.
The plaintiff trust was created as well as other voluntary employees’ beneficiary associations for additional employee classifications.
In 2023, the Legislature appropriated $10 million to award as grants to voluntary employees’ beneficiary associations in Detroit formed following the bankruptcy.
The Detroit Police and Fire voluntary employees’ beneficiary association and the Detroit General voluntary employees’ beneficiary association are the only two entities formed by the city during the bankruptcy and were eligible to apply for the grant.
The Legislature directed LEO to develop a standard application and review process, which would then execute grant agreements with recipients.
Part of the lawsuit claims that the department did not do so, nor did it publish or make the application publicly available.
Gongwer News Service
The Department of Treasury was voluntarily dismissed from lawsuit brought by a group of Detroit retirees who sued state agencies over a legislative appropriation that would have allowed associations to seek grants managing retiree future health care benefits following the city’s bankruptcy.
In an order signed Wednesday by Court of Claims Judge Christopher Yates, Treasury and the plaintiffs agreed to dismiss the department from Detroit Police & Fire Retiree Health Care Trust v. Department of Labor and Economic Opportunity (COC Docket No. 24-000097). The order notes that the dismissal was only applicable to Treasury and not LEO or the Department of Technology, Management and Budget, who remain as named defendants.
The dismissal was voluntary and agreed to by stipulation on October 11. Yates also said the department was dismissed without prejudice, meaning the claims could be revived at a later time.
The complaint alleges the grants in question, as appropriated, did not reach the pockets of those who needed the funding.
Health care benefits for retired police officers, firefighters and other municipal retirees were cut significantly when the city went bankrupt a decade ago.
Part of that deal was the formation of voluntary employees’ beneficiary associations to manage existing retirees’ future health care benefits.
The plaintiff trust was created as well as other voluntary employees’ beneficiary associations for additional employee classifications.
In 2023, the Legislature appropriated $10 million to award as grants to voluntary employees’ beneficiary associations in Detroit formed following the bankruptcy.
The Detroit Police and Fire voluntary employees’ beneficiary association and the Detroit General voluntary employees’ beneficiary association are the only two entities formed by the city during the bankruptcy and were eligible to apply for the grant.
The Legislature directed LEO to develop a standard application and review process, which would then execute grant agreements with recipients.
Part of the lawsuit claims that the department did not do so, nor did it publish or make the application publicly available.
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