On December 3, Bankruptcy Judge Steven Rhodes ruled that Detroit can proceed with its bankruptcy.
And this means that people who have worked their entire lives for Detroit will see reduced pensions.
This of course raises a very important question for anyone working for government agency. Do you know what is going on with your pension? Maybe the city you are working for is prosperous and secure. In the early 20th century, Detroit was like Northern California or Seattle today. If you got hired by Ford or General Motors that meant you were going places in life. Detroit was a rich and powerful city and a fabulous place to live and work.
Now, Detroit has lost much of its population and fewer people want to live there. Most cities in South Florida are relatively secure financially. They are paying their pension obligations. But people should always keep and eye on their personal finances and be aware that governments, even in large cities can fail.
"I think it is bad what is happening to people in Detroit who were counting on their pensions. I hope it does not happen Miami. A lot of people depend on pensions when they are older and can't work," said Marie Perez.