City of Pontiac Retired Employees v. Louis Schimmel

OPINION

GWIN, District Judge.

Like many Michigan municipalities, the City of Pontiac has experienced significant economic difficulties, especially since the 2008 financial collapse. To address Pontiac’s problems, Michigan’s Governor appointed Louis Schimmel as Pontiac’s emergency manager. Acting under Public Act 4, Michigan’s then-existing emergency manager law, Schimmel modified the collective bargaining agreements of Pontiac’s retired employees. He also modified severance benefits, including pension benefits, that Pontiac had given to other retirees not covered by collective bargaining…