Numbers Show Pension Retirees Fleeing Illinois

Commenter Scott Coffey posted this comment on the McHenry County Blog post: Census Bureau Reports Illinois Losses from Depopulation

As to the question surrounding how much in public pensions stays within the State, I thought this might be useful from the TRS annual report:

TRS benefit payments largely stayed in Illinois and created economic activity throughout the state
that helped support more than 41,000 jobs.

These jobs have an estimated payroll of $1.6 billion.

In all, economic models show that TRS benefits created a $3.8 billion economic boost to the State of Illinois.

Last fiscal year “TRS benefit payments” totaled $6.2 billion. So TRS’ own estimates indicate only a $3.8 billion economic boost on $6.2 billion in payouts.

At this point, the State would get a bigger bang for its buck if it just dropped $6.2 billion One Dollar bills from helicopters all over the State.

At least that cash would get spent here in Illinois.


Numbers Show Pension Retirees Fleeing Illinois — 16 Comments

  1. Here in this sunshine blog, when sunshine conservative republicans leave the state, it is the right thing to do; but when pensioned retirees leave the state, it is somehow treasonous (the new favorite word of tronald chump supporters). Remember how much sunshine commenters cheered after their hero Chris Jenner decided to leave the state? Thank you sunshine blogger for your immense contribution to beautiful McHenry county. You will always be my “real” sunshine blogger. Stay tuned…tic, tock, meow, meow, tic, tock…

  2. Why would a $3.8B stimulus out of $6.1B paid be out of the ordinary? The recipients still have to pay Federal income taxes, local property taxes, sales taxes…

    Using Scott’s own numbers, he’s claiming 1/3 of the pension payments aren’t functioning as stimulus. Add up the federal/property/sales taxes a median retiree pays, and I’d expect it to be about 1/3 of the pension.

  3. The comment from the TRS report about the “economic boost” to Illinois is a a good example of not telling the whole truth.

    Even assuming the TRS’s numbers about “economic boost” are accurate, if pensions weren’t so generous for government employees, then there would be more money in the pockets of taxpayers, which would provide an even greater “economic boost” since government is inherently inefficient.

  4. TRS has previously defined the economic impact as “including TRS benefit payments paid to beneficiaries residing within the State plus all additional economic activity in Illinois generated by those payments.” That additional economic activity is a multiplier (Total Output Multiplier) which is then multiplied against the benefits paid to yield the total economic impact.

    For comparison purposes, in 2008 TRS reported a $3.8 billion State economic impact. That year they broke out their beneficiary payments with $2.3 billion staying in-state (82%) and $0.5 billion going out of state (18%).

    Now that TRS benefit payments have more than doubled to $6.2 billion and the economic impact stayed at $3.8 billion, one has to conclude that both the percentage of benefits staying in-state has declined and that the Economic Output Multiplier has also dramatically declined relative to 9 years ago.

  5. Ah yes, the multiplier.

    It’s the unknowable number beloved by spending faeries everywhere.

    Pick the right value, and just about any expenditure can make good fiscal sense.

  6. See a DEMOCRAT – thank a DEMOCRAT ….. and that lying, backstabbing bastard “I’m Not In Charge” RINO Rauner, too.

  7. Should we ask that those people who gained their pension while working in some capacity in Illinois government (teachers, administrators, others) stay in Illinois as residents while collecting their pensions OFF THE BACKS of we taxpeyers? And, if they do not stay in Illinois, to pay some amount of penalty on their pension checks? Do they not owe it to we taxpayers who have paid for their extravegent salaries and benefits to spend the amounts from their pensions right here in Illinois?

  8. Just remember Angel if enough of us wealthy rich deplorables continue to leave the state you and your righteous pensioners will have No Pension funding left. But you still won’t comeback from Florida cause you’re enjoying they’re low taxes Lol!

  9. My dear compassionate conservative libertarian brothers and sisters: What happened to the freedom you so eloquently advocate for in this sunshine blog? Should Illinois pensioned retirees stay in Illinois to serve some sort of penance and retribution to taxpayers? How about requiring the same for all states? Sunshine blogger, this post is the perfect story for the recorded laughter…stay tuned…tic, tock, tick, tock, meow, meow, tic, tock…

  10. Jason, at only a year away from $100k, Cal has no fiscal problems.

  11. I will be taking my seven figure deferred compensation accounts to sunny, income tax free Florida.

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