State retirees' pension cut to be 9.6%
MADISON, Wis. (AP) — Retired public employees in Wisconsin will see their monthly pension payments decrease by 9.6 percent starting in May, the Department of Employee Trust Funds announced Friday.
The department warned in December the cut could be as steep as 13 percent.
Pension payments are based on the performance of funds managed by the State of Wisconsin Investment Board, as well as other actuarial factors, such as the number of retirees entering and leaving the system. The decline is the result of a 26 percent loss in investments in 2008, as payments to retirees invested in the Wisconsin Retirement System’s Core Fund are smoothed over a five-year period.
Investments have been increasing every year since 2008, meaning payments to retirees should start to go up again in 2014.