A relatively large & sustained (i.e.- years/decades… a new secular bear market) in bonds would be bearish for pension funds, which hold a lot of bonds, as well as the stock market & economy, which benefit from low and/or sustained falling rates, such as we had for the past 42 or so yrs until rates bottomed during COVID.

While you would want to verify this in your situation; I believe that most state & local pension funds, such as firefighters, police, teachers, etc… are ultimately the responsibility of the taxpayers of that state or municipality, in the case of any shortfalls from managing the pension plan although that doesn’t guarantee cuts to the payouts can’t be made, again, generally speaking so best to look into your plan.