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Schuette asks for quick decision in Detroit pension ruling

LANSING (WKZO) -- Michigan Attorney General Bill Schuette has asked the 6th Circuit Court of Appeals for quick decision on whether Michigan’s constitution protects pensions in Detroit’s bankruptcy case.

The filing by Schuette marks the first time the AG has waded into the bankruptcy.  The state’s chief law enforcement officer did not get involved in the bankruptcy eligibility battle last fall.

On Monday, Schuette said a clause in the state constitution prevents cuts to retiree pensions, which contradicts a ruling by U.S. Bankruptcy Judge Steven Rhodes, who said the pensions could be cut in federal bankruptcy court like other contracts.