It's hard to find good news about the economy these days. Things are so uncertain and there continue to be more questions than answers. But one thing that hasn't changed is LAGERS' commitment to the people that depend on us.
LAGERS' most recent economic impact numbers are in, and it looks to be another successful year of providing stable economic foundations for our members, retirees and the communities in which they live. Here are just a few quick stats:
Tagged Economic Impact
A new study by the National Institute on Retirement Security (NIRS) shows that income retirees receive from public pension plans, like LAGERS, produce positive economic impacts across the nation. The study, using 2016 data, reports public pensions are responsible for $1.2 trillion in total economic output in the U.S. and added $202.6 billion in government revenue from retiree income taxes and spending.
It’s that time again when we pick a city, county or a region of the state to feature the economic footprint of LAGERS. With the holidays upon us, I found myself thinking close to home and realized that we had yet to do a feature on my home county.
The recently released 2018 Economic Impact Report from Missouri LAGERS shows the pension fund paid $308 million to retired local government workers and their loved ones last year with ninety-three cents of every dollar ($286 million) staying in Missouri.
LAGERS retirees contribute to the economies of cities and counties all across our great state. Just take a look at this snapshot of the economic impact created by the retirees of Northwest Missouri. In 2017, over $15 million was paid to our retirees, who then in turn spent money in our communities with their LAGERS benefits.
Above: 2016 annual benefits paid to LAGERS' benefit recipients in Missouri.
This post was originally published in November, 2017. For more information on how pensions benefit everyone, go to showmesecurity.molagers.org
Employee benefits are often thought to be for the betterment of one and only one group - the employees. Rather than simply providing a salary, employers use benefits like health insurance, retirement plans, and paid vacation to build morale, keep good workers, and to attract new workers. For these reasons, it makes sense to think that compensation other than salary are good for the employees and only the employees. But there is more to it than that.
A publicly-held company must make decisions that will positively affect the bottom line so the shareholders may profit. Likewise, government leaders serve the taxpayers and make decisions to enhance the prosperity of their communities. Decisions about employee benefits, therefore, cannot only be valuable to the employee, but also must make sense for the shareholder or taxpayer. In other words, all stakeholders must get some return on the investment for employee benefits.
LAGERS retirees provide strength for their communities' economy by re-investing their hard-earned retirement benefits back into their communities. For example, in Boone County last year, there were 611 retirees who, combined with other LAGERS beneficiaries, received over 11 million dollars from LAGERS benefits. This income is used by retirees and their families to purchase goods and services within their community. This increases the assets and strength of local area businesses, who, in return, expand their businesses and employment opportunities. There is little doubt the bones of any community consist, in large part, of the businesses found within the community. LAGERS retirees provide the calcium for these bones by providing economic strength through their LAGERS benefits.