We support defined benefit pensions for many reasons.
One of them is “The Benefits of Retirement Security...”
When a retiree receives a pension benefit payment, s/he spends it on goods and services — housing, food, clothing, medicines, a car or computer. These purchases create an important economic ripple effect.
Every taxpayer dollar contributed to state and local pension plans supported $9.19 in national economic output!
Nationally, taxpayer contributions are about 24 percent of pension financing. Most of the funding comes from investment earnings and employee contributions.
In Florida, 2014 expenditures stemming from state and local pensions supported…
• 108,370 jobs that paid $4.8 billion in wages and salaries
• $15.5 billion in total economic output
• $2.4 billion in federal, state, and local tax revenues
Source: Pensionomics 2016: Measuring the Economic Impact of Defined Benefit Pension Expenditures, National Institute on Retirement Security