Decrease in state pension checks expected
MADISON, Wis. (AP) — Retired state government workers are expected to see a decrease in their monthly pension checks.
Wisconsin's multibillion dollar public employee pension fund is preparing to reduce payments to about 150,000 retirees for the first time in its 26-year history.
The Department of Employee Trust Funds is also warning municipalities, counties, school boards and the state they will have to increase contributions to the pension fund.
The entities on average, contribute about 10.4 percent of their payroll to the Wisconsin Retirement System, a figure that will likely hit 10.9 percent in 2010 if the market value of the pension fund falls by 20 percent this year.
The fund covers about 540,000 current employees and retirees.
Nov 4, 2008 at 7:04 a.m.
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The market will recover, just like in 2000.
Nov 3, 2008 at 5:33 p.m.
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If there will be any drop in pension checks, it won't be known until the end of the year. It all depends on where the markets are then rather than now. The figure I heard was 16%, if the fund has lost more than 16% on Dec 31, reductions will begin in May. It has lost more than 16% so far this year, although it could gain some of that back by Dec 31.
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