An economic impact analysis released today 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. The new report, “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.
- Paid $151.7 billion in pension benefits to 7.3 million retirees and beneficiaries.
- 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.