A new study by the University of the Pacific has determined that California State Teachers' Retirement System (CalSTRS) members and their beneficiaries pump more than $11 billion into the state's economy each year.
"The study clearly points out that the majority of educator retirement benefits are being spent in the communities where retired educators live, and often times, built their careers," said Dana Dillon, an elementary school teacher from Weed who chairs the CalSTRS Board. "Besides the gift of having enriched young minds and helping shape the future of California's youth, retirees are a direct boost to their local economy through everyday purchases at supermarkets, restaurants, department stores, automotive services – and ultimately, as taxpayers and homeowners."
According to the study commissioned by CalSTRS, the retiree spending:
Supports 92,815 jobs in California;
Generates $4.4 billion in total labor income; and
Creates $1.2 billion in tax payments to state and local governments through income, sales, and corporate profit taxes.