The following is a press release from CalPERS earlier this month.
SACRAMENTO, CA - More than $30 billion in economic activity was generated by retirement benefits paid by the State’s pension fund, according to a study released by the California Public Employees’ Retirement System (CalPERS).
The CalPERS Economic Impacts in California report for the Fiscal Year ending June 30, 2012, highlights the vital role CalPERS plays in the State’s economy each year. The report demonstrates how CalPERS benefits and investments generate significant economic activity in the state, to stimulate business growth and increased tax revenues, and to support and create jobs for Californians.*
“This study clearly illustrates that public pensions are one of the most powerful engines that drive California’s economy,” said Anne Stausboll, Chief Executive Officer for CalPERS. “CalPERS investment of $20 billion in California, combined with the benefits paid to our members, truly serves to stimulate our local and State economies and the creation of jobs.”
Key findings of the CalPERS Economic Impacts in California report include:
- CalPERS benefits (retirees spending their pensions) returned $10.85 in economic activity to California for each taxpayer dollar (public funds) contributed to the system.
- The total economic revenue generated by CalPERS benefits was more than $30.4 billion.
- CalPERS benefits created 113,664 jobs throughout California.
- Investments in California accounted for $20.7 billion, or approximately 8.9 percent, of the CalPERS portfolio.
- The CalPERS investment portfolio, which includes public and private equities, real estate, fixed income, and infrastructure, supported 1.5 million jobs.
“In addition to the positive financial impact our retirees have on supporting the state’s economy, CalPERS investments help strengthen California businesses,” noted Ann Boynton, CalPERS Deputy Executive Officer of Benefit Programs Policy & Planning.
CalPERS is the largest public pension fund in the U.S., with $287.7 billion in assets. CalPERS administers health and retirement benefits on behalf of 3,089 public school, local agency and state employers. There are nearly 1.7 million members in the CalPERS retirement system and more than 1.3 million in its health plans. For more information about CalPERS, visit www.calpers.ca.gov.