Governing, March 2009
A new study by the National Institute on Retirement Security reports on the economic impact of state and local pension plans. The report, with the catchy name of “Pensionomics,” finds that in 2006 state and local pensions:
- Had a total economic impact of more than $358 billion.
- Supported more than 2.5 million American jobs that paid more than $92 billion.
- Supported more than $57 billion in annual federal, state and local tax revenue.
- Had large multiplier effects. Each taxpayer dollar invested in state and local pensions supported $11.45 in total economic activity, while each dollar paid out in benefits supported $2.36 in economic activity.
- Had the largest impact on the manufacturing, health care, finance, retail trade, and accommodation and food-service sectors.
- Paid $151.7 billion in benefits to 7.3 million retirees and beneficiaries.
Read the full article here.