Retired Public Employees Could See Drop in Monthly Pensions
City-Times Staff
Retired public employees in Wisconsin could see a 13 percent dip in their monthly pension payments starting in May.
The news came Friday from the Department of Employee Trust Funds (ETF) on Friday.
Pension payments are based on the performance of funds managed by the State of Wisconsin Investment Board, as well as other actuarial factors like the number of retirees entering and leaving the system. The change in May is also a reflection of state reductions caused by the recession, the ETF said.
The decline is also the result of a 26 percent loss in investments in 2008.
Investments into the fund have been increasing every year since 2008, and ETF Deputy Secretary Rob Marchant said payments should begin to increase again in 2014.
“Although these cuts are painful, they are an important mechanism for insuring the system can pay all promised benefits,” Marchant said. After this reduction is complete, retirees will have given back in excess of $4 billion, he said.