Pontiac retirement system says settlement ready pending Dec. 9 fairness hearing; payment timing unclear

The city’s General Employees Retirement System told the Pontiac City Council on Nov. 25 that it is prepared to implement an enhanced pension benefit once a federal court gives final approval to a settlement.

GERS’ executive director said the timing depends on the court, which is scheduled to hold a fairness hearing at 2 p.m. Dec. 9 in Room 767 of the Theodore Levin U.S. Courthouse in Detroit to consider objections and determine whether the settlement is “fair, reasonable, and in the best interest of the class members.” She said the settlement requires assets be transferred 15 days after court approval and that a lump‑sum retroactive payment be issued 30 days after that transfer; she estimated payments could occur in the first quarter of 2026.

Council members pressed the administration and GERS staff for additional details. Councilwoman Kathleen James asked the executive director to repeat the 15‑day and 30‑day steps; the director reiterated the sequence and said exact dates cannot be fixed until the court acts. Councilman Rutherford asked how soon retirees would receive their first payment if the court approves on Dec. 9; the deputy mayor said the city administration did not have a finalized timeline. GERS staff encouraged class members to attend the Dec. 9 hearing and said class members have already been notified.

Retirees and advocates have repeatedly sought clarity on backlog and back pay. GERS staff said they have calculated each eligible member’s enhanced benefit and that the office will answer individual questions but cannot address unrelated benefits or healthcare inquiries that fall outside the settlement’s scope.

GERS requested that the city attorney provide the council’s version of the enhanced benefit ordinance amendment to GERS counsel to ensure the city’s implementing ordinance aligns with the settlement requirements. The council confirmed the hearing date in its agenda materials and urged members of council and retirees to attend the Dec. 9 proceeding.

What happens next: The fairness hearing on Dec. 9 will determine whether the court gives final approval. If approved, GERS said assets will transfer per the settlement timetable, after which the system will issue retroactive lump‑sum payments and begin an ongoing monthly enhanced benefit when funding thresholds in the agreement are met.