Three New Governors Face Three Old Pension Disasters - Bloomberg

Three New Governors Face Three Old Pension Disasters - Bloomberg



...New Jersey has the worst business climate in the nation, which encouraged top taxpayers like David Tepper of Appaloosa Management to move to Florida. Connecticut and Illinois were among the few states to experience a net population decline in the year through July 2018, Census data show.



...Illinois has a whopping $134 billion in unfunded pension liabilities, while Connecticut has $35.5 billion. Both governors released plans last week that acknowledge the need to make full contributions to the retirement funds and recognize that returns will most likely be lower in the future.



...Because of the current state of the U.S. economy, the leaders in these states might have the last chance to get these funds back on track. The prospect of a recession looms large, which could spell the end of the long move higher in stocks. A relentless rally in risk assets has helped allay some of the underlying issues. Sustained market losses could be a death knell.