I believe most states have constitutional laws requiring a balanced budget. In the upcoming months states will be forced to increase revenues, decrease expenditures or a combination of both. Granted states face monumental challenges in the days ahead but if they are constitutionallly required to adopt a balanced budget many will have to adopt draconian measures.
Future retirees may see a decrease in their expected benefits but I seriously doubt those already retired will notice any changes. Pension accounting and actuarial accounting is a topic best left to be discussed another time.