A new national economic impact study finds that DB pension benefits have a significant economic impact: 6.1 million American jobs and $941.2 billion in economic output.
The analysis finds that the benefits provided by state and local government pension plans have a sizable impact that ripples through every state and industry across the nation.
“Pensionomics 2012: Measuring the Economic Impact of DB Pension Expenditures” finds that expenditures made from public and private pension benefits in 2009:
- Had a total economic impact of more than $941.2 billion.
- Supported more than 6.1 million American jobs that paid more than $291.9 billion in labor income to American workers.
- Supported more than $125 billion in federal, state, local tax revenue.
- Had large multiplier effects. For every dollar paid out in pension benefits, $2.37 in total economic output was supported. For every taxpayer dollar contributed to state and local pensions $8.72 in total output was supported.
- Had the largest employment impact on the food services, real estate, health care, and retail trade sectors.
- Paid nearly $400 billion in pension benefits to over 21 million retired Americans and beneficiaries.
The report also analyzes the economic impact of state and local pensions in all 50 states.