Public-sector pensions have suffered grievous losses since the global pandemic began, and the situation is likely to get even worse as the crisis wears on, said the Wall Street Journal.

Due to major losses in the stock market, public pensions have lost a median of 13.2 percent of their value during the first three months of the year, delivering the worst quarter in 40 years. While the recent rally has softened the blow, these retirement plans, not in the best shape even before the pandemic, remain in a precarious state.

Because these pensions are fueled partially by investments, which have tanked, and partially by tax money, the Journal said many government entities will need to dip into their own coffers to make up for the shortfall and keep its retirees whole. But as state and local tax revenues dry up, governments will likely find it difficult to keep up the pace for long, which threatens the livelihoods of millions of people.

Should public pensions continue to take losses, it is possible that at least some of them may have to restructure, similarly to what happened in Detroit in 2013. Badly hurt from the 2008 financial crisis, the city was eventually unable to pay its pension obligations (among other bills) and so was forced to restructure its debt, which has left many retirees struggling to pay the bills, even as long as five years later.