A new national economic impact study finds that DB pension benefits have a significant economic impact: 6.2 million American jobs and $943 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 2014: Measuring the Economic Impact of DB Pension Expenditures finds that expenditures made from public, private, and federal government pension benefits in 2012:
- Had a total economic impact of more than $943 billion.
- Supported 6.2 million American jobs that paid nearly $307 billion in labor income to American workers.
- Supported more than $135 billion in federal, state, local tax revenue.
- Had large multiplier effects. For every dollar paid out in pension benefits, $1.98 in total economic output was supported. For every taxpayer dollar contributed to state and local pensions $8.06 in total output was supported.
- Had the largest employment impact on the food services, real estate, health care, and retail trade sectors.
- Paid nearly $477 billion in pension benefits to 24 million retired Americans and beneficiaries.
The report also analyzes the economic impact of state and local pensions in all 50 states and the District of Columbia. Click through the image below to see state-by-state data. Visit a Map with state-by-state impacts here.