Insolvent Detroit's Pension Fiasco

The June 30, 2012 valuation for the Detroit Police and Fire Retirement System is out and it claims that the system is 96.1% funded.  So why the need for the cuts recently announced by the city's fiscal manager? What’s the problem? Basically that the valuation is a joke.  It doesn’t honestly value the pension liabilities it recognizes while ignoring others and  pretends to have more money than it reports is in the plan.