Dem States Worried Whether They Can Pay Out Retirement Benefits

  • Three high-profile Democratic governors are struggling to stabilize their states’ retirement programs due to a falling stock market and may have difficulties paying out benefits in the coming years.
  • Democratic California Gov. Gavin Newsom, Democratic Illinois Gov. J.B. Pritzker and Democratic New Jersey Gov. Phil Murphy, all of whom are considered potential candidates for the 2024 presidential race, have poured billions of dollars into their states’ pension funds.
  • Retirement fund investment plans can’t accrue as much money in weak markets or during times of slow economic growth, so more of the payouts must rely on tax money.