PENSION NEWS STAYS BAD: Steep Losses Pose Crisis for Pensions: Two Bad Choices for Funds: Cut Benefits Or Take Greater Risks to Rebuild Assets. “The financial crisis has blown a hole in the rosy forecasts of pension funds that cover teachers, police officers and other government employees, casting into doubt as never before whether these public systems will be able to keep their promises to future generations of retirees.” The important thing to remember is that these promises were always untenable — the financial meltdown just made this apparent sooner, rather than (as the politicians had hoped) later.