For Immediate Release
Perryman Group study says statewide economic boost provided by retirement income benefits is equal to high tech manufacturing payroll
The economic and financial analysis firm The Perryman Group (TPG) is releasing a study identifying $10 billion annual economic stimulus created by payments sent to Texans from the state’s large public retirement systems and the local pensions which are members of the Texas Association of Public Employee Retirement Systems, an organization representing more than 80 such organizations across the state.
Our study confirmed that, in 2010, the large state and local plans paid more than $10 billion in retirement income to hundreds of thousands of retirees, said Dr. Ray Perryman, an economist and founder/president of The Perryman Group. More than 95% of these funds are sent to Texas residents and considering multiplier effects create $24.16 billion total expenditures and $11.12 billion in output.
To put this number in perspective, $10 billion is about five times the total payroll in Texas agriculture, approximately equal to the total combined payroll of computer and electronics manufacturing in the state, and about the same as the total military payroll within Texas, Perryman said. The retirement payments produce $1.1 billion in tax revenues for the state and $438 million for local government entities.
TEXPERS Board president Eyna Canales-Zarate delivered the report at a House Committee hearing today charged with examining the costs of local public employee pensions.
We share the House Committee’s concern about monitoring ongoing costs but we must also balance those concerns with an understanding of the considerable benefits delivered to the Texas economy, Canales-Zarate said. Costs are already effectively managed at the city level through checks and balances by Boards of Trustees elected by their members and appointed by city leaders. We encourage continued local management of costs and benefits.
The full report may be viewed at www.texpers.org/documents/PerrymanStudy
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