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Sunday, May 24, 2015
More Reasons Not to Destroy the Defined-Benefit Pension Plan for Teachers: TRS BENEFITS: AN IMPORTANT STIMULUS FOR THE ILLINOIS ECONOMY
The Teachers’ Retirement System of the State of Illinois annually distributes approximately $3.8 billion in pensions and benefits to men, women, and children in every corner of the state, creating a sustained economic stimulus that helps drive the economy in all 102 counties. This study is based on recurring payments to retirees, survivors, and disability benefit recipients living in Illinois. Lump-sum payments for refunds and death benefits are excluded from the analysis since they do not provide a continuing source of income. Net, rather than gross, benefits are used in this analysis because the net benefits are what stimulate the state economy. The multipliers were produced by the Regional Product Division of the U.S. Bureau of Economic Analysis.
The positive ripple effect of TRS benefits jumps by 46 percent to more than $5.584 billion in total economic activity throughout Illinois - new full-time jobs, salaries earned, and new goods and services produced across the state.
The study, conducted by TRS using benefit statistics from February 2015 benefit payments, found that:
• Eighty percent of the System’s 89,817 total benefit recipients live in Illinois.
• The $3.8 billion in pensions and benefits paid to Illinois residents is 83 percent of the total pensions and benefits distributed by TRS annually. The statewide economic impact of TRS pensions and benefits can be measured in real terms:
TOTAL OUTPUT - $5.584 BILLION
This is the overall measure of economic activity in Illinois stemming from TRS pensions and benefits. It includes all TRS payments, salaries earned in those jobs, and increases in the state’s Gross Domestic Product.
JOBS SUPPORTED – 41,725
This is the total number of full-time jobs supported by the $3.821 billion in TRS pensions and benefits pumped into the Illinois economy.
EARNINGS CREATED - $1.562 BILLION
These are the total salaries earned by persons employed in Illinois jobs that are fueled by TRS benefit payments.
ILLINOIS GDP VALUE - $3.272 BILLION
This is the amount added to the Illinois Gross Domestic Product – the total value of goods and services produced within Illinois – due to TRS pension and benefit payments.
For the complete report from TRS, click here.