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 the cut on Friday. It had warned in December that the cut could be as high 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 like the number of retirees entering and leaving the system.
Payments to retirees invested in the Wisconsin Retirement System's Core Fund are smoothed over a five-year period, and the declines are the result of a 26 percent loss in investments in 2008.
Payments are expected to increase in 2014.