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Pensionomics: Measuring the Impact of State and Local Pension Plans

Sep 1, 2009

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A new national economic impact study finds that the benefits provided by state and local government pension plans have a significant economic footprint:  2.5 million American jobs and $358 billion in economic impact.

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.  Full Report here.   Report PowerPoint here.State Fact Sheets/Map here.  State Press Releases here.

“Pensionomics: Measuring the Economic Impact of State and Local Pension Plans,” finds that expenditures made from state & local pension benefits for fiscal year 2005-2006:

  • Had a total economic impact of more than $358 billion.
  • Supported more than 2.5 million American jobs that paid more than $92 billion in total compensation to American workers.
  • Supported more than $57 billion in annual federal, state, 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 pension benefits to 7.3 million retirees and beneficiaries.

The report also analyzes the economic impact of public pensions in all 50 states.

Related Research and Analysis

Workforce Turnover and Retention in the Public Sector: Insights from Public Pension Plans
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  • Workforce Turnover and Retention in the Public Sector: Insights from Public Pension Plans

    This report examines how retention changes over public employees’ careers and varies across public workforces and retirement systems. The analysis draws on actuarial turnover assumptions and other information collected from 136 state-administered public pension plans representing 203 plan-employee groups and 12.8 million active members.

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