Dem states worried they can't pay out retirement benefits

High-profile governors who may run for president could be forced to take drastic action

By WND News Services
Published December 28, 2022 at 3:06pm

ShareTweetShareGettrShare to GabEmailPrint

(Image by Benjamin Balazs from Pixabay)

By Laurel Duggan
Daily Caller News Foundation

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, according to Politico.

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, according to Politico. They may struggle to maintain their public images if they’re forced to raise taxes or make budget cuts to keep pension payments flowing.

TRENDING: Air Force Academy sued for details of teachings on CRT, 'white supremacy'

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, according to Politico. Rising interest rates and declines in the stock market during 2022 created a bad investment environment for retirement funds, and 2023 will likely be worse.

WND is now on Trump's Truth Social! Follow us @WNDNews

Most state and local retirement systems lost money in 2022, including the California Public Employees’ Retirement System, the country’s largest public pension, which lost nearly $30 billion, according to Politico. Some of the blame lies with the three governors’ predecessors, who failed to adequately fund the retirement systems while in office, Politico reported.

“When we arrived on the scene, New Jersey’s pension system had either been ignored or underfunded by administrations on both sides of the aisle for more than 20 years,” Murphy told the outlet, ading that he is “fully committed” to paying the state’s full obligation to its retirement system for the third time in a row in 2023.

Do any of these three governors have a good chance to win the presidency?

Yes No 

Completing this poll entitles you to WND news updates free of charge. You may opt out at anytime. You also agree to our Privacy Policy and Terms of Use.

Gov. Phil Murphy, D-N.J. (Video screenshot)

“There’s going to be acute fiscal pain and pressure the more you ignore the cost,” Leonard Gilroy, a senior managing director of the Reason Foundation’s Pension Integrity Project, which advises state governments on pension plans, told Politico. “If you’re not paying it down, you’re chasing it.”

Newsom, Pritzker and Murphy did not respond to the Daily Caller News Foundation’s request for comment.

This story originally was published by the Daily Caller News Foundation.

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.

SUPPORT TRUTHFUL JOURNALISM. MAKE A DONATION TO THE NONPROFIT WND NEWS CENTER. THANK YOU!