Illinois Municipal Retirement Fund Among State’s Largest Economic Engines

—Pension fund benefits generate $1.5 billion in economic activity, support nearly 11,300 jobs in Illinois for third straight year —

OAK BROOK, Ill. — June 5, 2012 — A new study released by the Illinois Municipal Retirement Fund (IMRF) demonstrates that the fund continues to support jobs and bolster growth in Illinois’ economy, even during a time when many businesses are struggling.

“Public pension plans like IMRF fulfill a vital role in the state’s financial health,” said IMRF Executive Director Louis Kosiba. “The secure income provided to IMRF retirees is channeled into local economies and serves as a stable source of revenue for local businesses and various levels of government.”

IMRF administers retirement, disability and death benefits on behalf of about 3,000 local units of government.  It serves more than 175,000 working public sector employees and more than 99,000 retirees. The fund calculates and reports on the annual economic impact of its defined-benefit pension payouts each year.

Since 85 percent of IMRF’s 99,000 retirees live in Illinois, local communities enjoy the majority of the benefits of retiree spending. The IMRF Economic Impact study took $1.08 billion in benefits that were paid to Illinois residents in 2011 and then used multipliers from the Bureau of Economic Analysis of the U.S. Department of Commerce to analyze the ripple effect on local economies as residents spent their pension payments on goods and services throughout the state.  The study concluded that 2011 IMRF benefit payments resulted in approximately $1.57 billion in statewide economic activity—a figure calculated by adding the initial value of the benefits to the value of the transactions that occurred as a result.

Helped support nearly 11,300 jobs
The Economic Impact study also concluded that IMRF benefits helped support 11,295 jobs in Illinois last year. Using economic multipliers from the U.S. Department of Commerce’s Bureau of Economic Analysis, the study showed that these 11,295 jobs generated $434.4 million in total earnings for Illinois workers.

“Our retirees contribute to the overall financial health of the state Illinois and its residents, which is particularly important during these tough economic times,” Kosiba said. “When IMRF retirees spend their pensions in their communities, these dollars ripple through the local economy and create income for other Illinois households, firms and various levels of government.”

About IMRF
The Illinois Municipal Retirement Fund (IMRF) was created by the Illinois General Assembly. Since 1941, IMRF has partnered with local units of government to provide death, disability and retirement benefits for working and retired public employees. Today, IMRF has more than 175,000 active members working for nearly 3,000 different units of government, including school districts, counties, cities and villages, parks and libraries. It has more than 99,000 retirees. Members who retired in 2011 retired with approximately 22 years of service and received an average annual benefit of approximately $17,000. IMRF consistently works toward reaching full funding over the long term, ensuring that it remains financially sound. A full-funding goal guarantees public workers a secure and modest retirement income at the lowest long-term cost to taxpayers.

Top

Need more information? Contact us.

Printer friendly