State retirees facing pension cut
Pension payments to retired state employees could go down next year for the first time ever as benefit calculations reflect a shrinking economy in 2009, and some lawmakers are looking at whether the state should step in to prevent it.
Though the year is not yet over, the Consumer Price Index that measures the cost of household goods and services is trending downward, and under current law that would cause payments to decline. Typically, increases in the CPI drive cost of living benefit increases, but the mechanism cuts both ways. The U.S. CPI was down 0.2 percent during the 12 months that ended in October.Read More