COLUMBIA, S.C. (AP) — A typical state retiree will lose about half their cost of living adjustment next year, or about $186 for the year, under a plan the South Carolina financial oversight board adopted on Thursday.

The five-member Budget and Control Board approved a plan that reduces the state's outlook for investment returns. As a result, people drawing benefits from the state's main retirement system stand to get a 1 percent cost of living adjustment instead of the 2 percent increase under the old investment return calculation. And there will be no increase at all in the Police Officer Retirement System, said Bill Bloom, director of the South Carolina Retirement Systems.

The average retiree draws $18,685 year from the system. That means the typical retiree would see about $186 less in than if the old investment rate had been kept in place. The lower cost-of-living increase would go into effect in July 2012. Retirees got a 1.7 percent increase in July.