The National Institute on Retirement Security (http://www.nirsonline.org) published a February 2009 fact sheet based on 2006 information, which is the latest data compiled.

Expenditures made by retirees of state and local government provide a steady economic stimulus to Washington communities and the state economy. In 2006, 129,378 residents of Washington received a total of $2.35 billion in pension benefits from state and local pension plans, with $2.17 billion paid from plans within the state and the remainder originating from plans in other states.

The average pension benefit received was $1,516 per month or $18,191 per year. These modest benefits provide retired teachers, public safety personnel and others who served the public during their working careers income to meet basic needs in retirement.

Retiree expenditures stemming from state and local pension plan benefits supported
21,035 jobs in the state. The total income to state residents supported by pension expenditures was $1.3 billion.

Of this, the greatest share, $717.6 million, was comprised of employee compensation (wages and salaries). Proprietors’ income(self-employment income) represented $101.6 million, and other property income (including payments from interest, rent, royalties, profits, and dividends) totaled $491.3 million.

State and local pension funds in Washington and other states paid a total of $2.35 billion in benefits to Washington residents in 2006. Retirees’ expenditures from these benefits supported a total of $3.2 billion in total economic output in the state, and $1.5 billion in value added in the state.

$2.3 billion in direct economic impacts were supported by retirees’ expenditures on goods and services from businesses in the state. An additional $472.1 million in indirect economic impact resulted when these businesses purchased additional goods and services, generating additional income in the local economy.

$491.5 million in induced impacts occurred when employees hired by businesses as a result of the direct and indirect impacts made expenditures, supporting even more additional income.

State and local pension payments made to Washington residents supported a total of $462.9 million in revenue to federal, state, and local governments. Taxes paid by retirees and beneficiaries directly out of pension payments totaled $82.4 million. Taxes attributable to direct, indirect and induced expenditures accounted for $380.5 million in tax revenue.

On June 29, 2009, The National Institute on Retirement Security published another report titled, "The Long Road to Retirement Recovery", compiled by Policy Analyst, Ilana Boivie.

The Federal Reserve released welcome data in its June 2009 "Flow of Funds" (http://www.federalreserve.gov/ Releases/Z1/Current/z1.pdf) report indicating that the economic situation may be stabilizing.

Disposable personal income rose by $142 billion in the first quarter 2009 and by $358 billion since the first quarter of 2008. This is a year-overyear gain of 3.4%.

With regard to household debt, it's down about 0.6% from a year ago while personal saving is way up. Personal savings in the first quarter 2009 came in at $475 billion. That’s more than personal saving for 2005, 2006, 2007 and 2008 combined. It seems that households have a little more money in their pockets perhaps because of the stimulus package tax cut.

With that money, many Americans seem to be focused on getting their financial houses in order by paying down debt and saving more. But even so, the road to recovery will be a long one.

Fed data also indicate that household net worth plummeted 16% in the last year. The massive financial losses will present significant challenges for retirees and near-retirees. Many will not have time to recover losses to their retirement savings accounts and housing values.

For individuals fortunate enough to have access to a pension plan, the news is a bit brighter.

Despite the significant losses that pension funds have endured along with all investors, these funds still have enough assets in reserve to pay promised benefits for years to come.

We’re encouraged that policymakers are taking thoughtful approaches and continue to see the value of pensions in ensuring retirement security.

With smart policy choices by plan sponsors and legislators, these retirement vehicles can endure this economic downturn and continue to provide retirement security for another generation of middle-class American workers.

To access this report in its entirety go to http://www.nirsonline.org