Pensionomics Are Bankrupting Governments- $3.8M Return On A $124K Investment

The New Math: Union Pensionomics Levies Crushing Debt on State and Local Governments

As state and municipal governments are forced to deal with the harsh realities of this budget situations they are going to have to confront one major draws upon their revenues - Public Employee Pension benefits.

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.

NEW JERSEY: You pay a total of $124,000 into your pension plan and, upon retiring at age 49, you receive $3.3 million in pension payments and $500,000 in health care benefits. You receive $3.8 million in total on a $124,000 investment.

Or this:

You pay a total of $62,000 towards a pension plan and absolutely nothing for health care (medical, dental and vision coverage) over your working career. Upon retirement, you are paid $1.4 million in pension and $215,000 in health care benefits. You receive $1.6 million on a $62,000 investment.