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Where in New York are NYSLRS Retirees?

NYSLRS retirees tend to stay in New York, where their pensions are exempt from State and local income taxes. In fact, 78 percent of NYSLRS 452,455 retirees and beneficiaries lived in the State as of March 31, 2017. And half of them lived in just ten of New York’s 62 counties.

So where in New York do these retirees call home? Well, there are a lot of NYSLRS retirees and beneficiaries on Long Island. Suffolk and Nassau counties are home to more than 57,000 recipients of NYSLRS retirement benefits, with annual pension payments exceeding $1.8 billion. But that shouldn’t be surprising. Suffolk and Nassau counties are, respectively, the largest and third largest counties in the State outside of New York City.Erie County, which includes Buffalo, ranks No. 2 in the number of NYSLRS retirees, with nearly 30,000. Albany County, home to the State Capital, ranks fourth with more than 18,000. Monroe, Westchester, Onondaga, Saratoga, Dutchess and Orange counties round out the Top Ten.

This distribution is easy to understand. The Top Ten counties for retirees include nine of the ten most populous New York counties outside of New York City. (The City, which has its own retirement system for municipal employees, police and firefighters, has about 22,000 NYSLRS retirees and beneficiaries living in its five counties.)

All told, NYSLRS retirees received $5 billion in retirement benefits in the Top Ten counties, and $9.1 billion statewide.

Hamilton County had the fewest NYSLRS benefit recipients. But in this sparsely populated county in the heart of the Adirondacks, those 435 retirees represent nearly 10 percent of the county population. $8.6 million in retirement benefits were paid to NYSLRS retirees in Hamilton County during fiscal year 2016-2017.

Outside of New York, Florida remained the top choice for NYSLRS retirees, with more than 36,000 benefit recipients. North Carolina (8,693), New Jersey (7,466) and South Carolina (5,620) were also popular. There were 690 NYSLRS recipients living outside the United States as of March 31, 2017.

The Economic Power of NYSLRS Retirees

Before they leave the workforce, NYSLRS retirees build careers based — at least in part — on serving the people of New York. They are police officers, firefighters and nurses. They are the countless civil servants working each day to keep government services functioning. Their value doesn’t end with retirement. In fact, NYSLRS retirees and their pensions contribute significantly to the communities where they live.

Seventy-eight percent of NYSLRS retirees (440,943 as of March 2016) stay right here in New York. They live throughout the state — from Long Island to the North Country, from the Capital District to Western New York and down to the Southern Tier. Altogether, they’re 2.9 percent of our state’s population, but in some areas, they account for more than 5 percent of the residents.

This large population with steady sources of income has a significant and positive impact on our state and local economies. In 2015 alone, NYSLRS retirees were responsible for $11.7 billion in economic activity in New York State:

  • Property taxes. In 2015, retirees paid $1.7 billion in real property taxes. That’s 5 percent of the total collected for the entire state.
  • State and local sales taxes. NYSLRS retirees paid an estimated $550 million in state and local sales tax in 2015.
  • Job creators. Some retirees do go on to start small businesses as a second act. However, all NYSLRS retirees spend at least some of their income to the benefit of local businesses, and they are responsible for an estimated 66,100 jobs as a result.

NYSLRS Retirees Contribute infographic

Remember: 75 percent of the pension benefits that make all of this possible comes from the investment earnings of the Common Retirement Fund (CRF), not from taxpayers.

Are these statistics impressive? Yes. Surprising? They shouldn’t be. According to research from the National Institute on Retirement Security (NIRS), defined benefit pensions, like those provided by NYSLRS, are responsible for substantial economic gains throughout the U.S. — an incredible $1.2 trillion in total economic output nationwide.

Pensions give retirees a stable source of income, and, in return, retirees support our national and local economies with jobs, incomes, and tax revenue.

How NYSLRS Retirees Contribute to New York’s Economy

Public pensions play an important role in our state’s economic health. The pensions NYSLRS retirees earn flow back into their communities in the form of property and sales tax payments, and local purchases. When public retirees stay in New York, they help stimulate and grow local economies.

NYSLRS Retirees Who Call New York Home

As of March 31, 2016, there are 440,943 NYSLRS retirees and beneficiaries. Seventy-eight percent of them – 345,643 – continue to live in New York. Suffolk County is home to the largest number of NYSLRS retirees and beneficiaries. More than $1 billion in pension benefits went to the 33,290 individuals who live there. Erie County has the second largest number of benefit recipients (29,029), who received $701.5 million.

NYSLRS Retirees Contribute

The Economic Impact of NYSLRS Retirees

NYSLRS retirees are patrons of local business and services, and they pay state and local taxes. By spending their retirement income locally, they help fuel the economic engines of their communities. In fact, a study by the National Institute for Retirement Security (NIRS) found that state and local pensions in New York State supported 215,867 jobs, driving $35.3 billion in total economic output and $8.1 billion in federal, state, and local tax revenues.

New York mirrored the NIRS report’s results across the rest of America. Nationally, retiree spending of pension benefits in 2014 generated $1.2 trillion in total economic output, supporting some 7.1 million jobs across the U.S.

The NIRS report suggests that a stable and secure pension benefit that won’t run out enables retirees to pay for their basic needs like housing, food, medicine and clothing. It’s good for the economy when retirees are self-sufficient and regularly spend their pension income. They spend that money on goods and services in the local community. They purchase food, clothing, and medicine at local stores, pay housing costs, and may even make larger purchases like computer equipment or a car. These purchases combine to create a steady economic ripple effect. Retirees with inadequate 401(k) savings who might be fearful of running out of savings tend to hold back on spending. This reduced spending stunts economic growth, which already is predicted to drop by one-third as the U.S. population ages.

NYSLRS Retirees Pay Their Share of Taxes

NYSLRS retirees live throughout the different regions of New York, but they only make up 2.9 percent of the general population. In some cases, they pay a larger share of property taxes. For instance, in the Capital District, retirees make up 5 percent of the population yet they pay 8.7 percent of the property taxes, which totals $218 million. In the North Country, retirees make up 4.3 percent of the population and pay 6.8 percent of the property taxes ($55 million). 

Retirees Build a Strong New York

After a career in public service, NYSLRS retirees continue to contribute to their communities and the State. Their pensions are a sound investment in New York’s future. Public pensions don’t just benefit those who receive them, but they pay dividends to local businesses, support local communities, and create jobs. As the number of NYSLRS retirees grows, it’s likely they will continue to help build a strong New York.

NYSLRS Retirees at Home and Abroad

If you’re a current NYSLRS member, you’re a state or local employee who works within New York State. But once you retire, you can spend time in warmer climates or move closer to family.

From an economic standpoint, we’re fortunate to have 78 percent of NYSLRS retirees and beneficiaries stay in New York. As we’ve mentioned before in previous posts, NYSLRS retirees contribute to the New York economy in a big way:

  • $12 billion generated in economic activity
  • $1.6 billion paid in real property taxes
  • $514 million paid in state and local sales tax
  • 60,400 jobs created from local spending

However, we haven’t looked at the other 22 percent of our retirees and beneficiaries. If they aren’t living in New York, where have they gone?

NYSLRS Retirees in the United States

NYSLRS Retirees in US

We’d be lying if we said we were surprised that Florida is the state with the second highest number of NYSLRS retirees and beneficiaries. Florida is currently home to 35,014 NYSLRS retirees. (Keep in mind New York is home to 337,406.) And you can find many other retirees and beneficiaries all along the East Coast…

  • North Carolina: 8,190
  • New Jersey: 7,171
  • South Carolina: 5,105
  • Pennsylvania: 4,300
  • Virginia: 3,585

…the West Coast…

  • California: 2,226
  • Oregon: 284
  • Washington: 478

…and even as far as Alaska (currently 60) and Hawaii (116). All told, 429,591 NYSLRS retirees and beneficiaries live throughout the United States and its territories.

NYSLRS Retirees Around the Globe

Where in the world are NYSLRS Retirees?Out of our 430,308 total NYSLRS retirees and beneficiaries, there are only 717 globetrotters. These retirees and beneficiaries live throughout the world, with the most common countries being:

  • Canada: 164
  • Israel: 56
  • United Kingdom: 36
  • Italy: 31
  • Jamaica: 31

Whether you retire close to home or move away, you’ll always be a part of NYSLRS. Make sure you stay in the loop about your benefits by visiting our Retirees home page.

NYSLRS Retirees Help Power New York’s Economy

At the 2015 annual meeting of the Retired Public Employees Association of New York, State Comptroller Thomas P. DiNapoli told association members that “a public pension is not only good for you and your family, it’s good for New York State.” He added that “you are part of the economic engine in many of our communities.”

The administrator of the New York State & Local Retirement System (NYSLRS) and trustee of the New York State Common Retirement Fund, State Comptroller DiNapoli also noted that, of NYSLRS’ 430,308 retirees, 78 percent of them — 337,406 — have chosen to live in New York.

NYSLRS-Retirees-Build-a-Stronger-NY

Click for full-sized version (PDF)

This is important, the State Comptroller explained, because the pension money paid to retired state and local public employees’ flows directly back into our communities, stimulating and growing our local economies.

During calendar year 2014, NYSLRS retirees were responsible for $12 billion in economic activity in New York State.

A Snapshot of NYSLRS

Each year, we publish our Comprehensive Annual Financial Report (CAFR) to explain how the Common Retirement Fund is managed and provide statistics about NYSLRS’ financial activities. This allows the public to see what we do behind the scenes to make sure the Fund stays well-funded and secure for the years to come.

NYSLRS by the Numbers

Retirees-in-US_Top-States The CAFR features many figures about NYSLRS and the Fund. At the end of the 2014–15 fiscal year, the Fund was valued at $184.5 billion. Prior to the recession, in fiscal year 2006–07, the value of the Fund was at $154.6 billion. Overall membership in NYSLRS is currently at 1,073,486, with membership being comprised of 643,178 members and 430,308 retirees and beneficiaries.

Of those 430,308 NYSLRS retirees, 78 percent of them — 337,406 — have chosen to live in New York. This is important because the pension money paid to retired state and local public employees flows directly back into our communities, stimulating and growing our local economies. During 2014, NYSLRS retirees were responsible for $12 billion in economic activity in New York State.

Here are some other facts you may not be aware of:

  • The state with the fewest number of NYSLRS retirees and beneficiaries is North Dakota, which only has 18 retirees and beneficiaries.
  • Florida has 35,014 retirees and beneficiaries, coming in second place to New York;
  • The county with the most retirees and beneficiaries is Suffolk County, with a total of 32,555. Erie County comes in second with 28,342 retirees and beneficiaries, and Nassau County comes in third with 21,947. The county with the fewest retirement and beneficiaries? Hamilton County with 411.
  • There are 717 NYSLRS retirees and beneficiaries who live outside the United States.

An Award-Winning Publication

NYSLRS received a Certificate of Achievement for Excellence in Financial Reporting for the 2014 CAFR. The Certificate of Achievement is a national award recognizing excellence in the preparation of state and local government financial reports. NYSLRS has won this award for the last 11 years.

You can check out CAFRs from past years by visiting our website at http://www.osc.state.ny.us/retire/about_us/financial_statements_index.php#cafr.

NYSLRS Retirees Build a Stronger New York

NYSLRS pension benefit can provide security and peace of mind in retirement. What some retirees might not realize about their lifetime benefit is the effect it has on the local economy. During 2014 alone, NYSLRS retirees were responsible for $12 billion in economic activity in New York State. By buying local goods and services, NYSLRS retirees help existing companies grow, create opportunities for new businesses, and help foster an environment that helps companies create job opportunities.

NYSLRS Retirees in New York

Of the 430,308 current NYSLRS retirees and beneficiaries, 78 percent of them live in New York State. These retirees make up 2.8 percent of the general population, but their impact on the State economy is considerable:

  • Retiree Spending Creates Jobs, Supports Local Business. NYSLRS retirees spend a larger than average share of their income on industries that benefitted local businesses, such as health care, restaurants and entertainment. These industries can expect more growth in the coming decades with NYSLRS retirees as part of their customer base. As a result of this spending, NYSLRS retirees were also responsible for an estimated 60,400 jobs.
  • Retirees Pay Billions in Taxes. In 2014, NYSLRS retirees paid $1.6 billion in real property taxes, which is five percent of the total collected in New York. These taxes help support New York schools, roads and government services. Also, spending by NYSLRS retirees and beneficiaries generated an estimated $514 million in state and local sales tax.

After spending their careers working in State and local governments, the university system, public authorities and schools, NYSLRS retirees continue to help New York’s Main Streets grow and develop. The benefits of a NYSLRS pension aren’t just felt by retirees, but also by local businesses and communities. As the number of NYSLRS retirees continues to grow, the investment they make in communities across New York State will also continue to grow.

Income Inequality and Pension Reform

Is the shift away from defined benefit pension plans hurting more than helping?

Today’s pension reform means increasing employee contributions, cutting pension benefits, and switching from defined benefit (DB) plans to defined contribution (DC) plans. In fact, according to a new study from the National Conference on Public Employee Retirement Systems (NCPERS), 15 million additional workers would have defined benefit plans if there had not been a trend over the past 30 years to convert pensions into defined contribution (DC) plans. However, there may be a hidden cost to this approach. As these reforms negatively affect plan participants and beneficiaries, income inequality appears to increase.

In the study, NCPERS looks at the growing debate between DB and DC plans. Those in favor of DC plans claim that DB public pension plans aren’t sustainable and taxpayers can’t afford to pay them. Others defend DB pensions, arguing the pension benefits are a type of deferred compensation and not the responsibility of taxpayers. Regardless of what side of the debate you’re on, here’s the hard reality:

  • In a DB plan, the employee receives a lifetime benefit based on years of service and salary.
  • In a DC plan, there’s no guarantee the employee will have enough or any retirement income upon retirement.

Income Inequality Worsening for Seniors

Despite the positive aspects of DB pensions, the trend against them continues, and the effects could be damaging. Several studies mentioned by NCPERS point out the reduction of retirement benefits and the shift away from DB pensions increase income inequality—even poverty—in the elderly. One study from the National Institute on Retirement Security (NIRS) found that poverty rates in senior citizen households without pensions were almost nine times higher than those with pensions.Income Inequality: The Elderly Poverty Rate is 9 times greater with no defined benefit income

The Economic Impact of NYSLRS Retirees

These are startling findings, considering the important role of pensions and retiree spending in the economy. In the US, retirees spend almost $838 billion each year, which employs millions of Americans and tens of millions indirectly. For every dollar paid in pension benefits, there’s $2.37 in economic output. In New York, retirees play an important role in the state economy. New York State and Local Retirement System (NYSLRS) retirees generate $11.3 billion in economic activity by spending $9.6 billion in the state. The pension benefits earned by NYSLRS retirees flows directly back into the local communities and economies.

As more negative changes affect DB pension plans and retiree benefits, the decrease in retiree spending will be felt throughout the economy.

“Personal income loss has a ripple effect, and everyone suffers when income inequality rises and economic growth weakens,” said NCPERS President Mel Aaronson. “Spending by retirees is vital to communities, yet local spending can easily be undermined by shortsighted changes to defined benefit pension plans.”

New York State Comptroller Thomas P. DiNapoli, Administrator of NYSLRS and sole trustee of the Common Retirement Fund, has often said that DC plans would put more people at risk in their retirement years. During an editorial board meeting of The Syracuse Post Standard last October 20, he also maintained that switching to a defined contribution plan won’t change the state’s obligation to provide a pension to the 1 million people already in the system. “A 401(k) was never meant to be the substitute for a pension,” DiNapoli said.

Study Finds Retiree Spending a Big Supporter Of The Economy

retirees-in-NYS_top-10-countiesA recent National Institute on Retirement Security (NIRS) study reveals that pension benefit payments provide important support to the economy, generating more than $943 billion in total economic activity and 6.2 million jobs in the United States.

The NIRS study reports on the national economic impacts of public and private pension plans, as well as the impact of state and local plans on a state-by-state basis. It measures the ripple effect of the pension benefit income spent by retirees in 2012 – about $228.5 billion paid to 9 million retired employees of state and local government and their beneficiaries. Retiree spending helped to support labor income, paying nearly $307 billion, and also generated $135 billion in tax revenue at the local, state and federal levels.

New York Retirees Contribute Their Fair Share

At the time of the NIRS study, NYSLRS retirees* were responsible for more than $11 billion worth of economic activity in New York State. The pension benefits they received stimulated our local economies in a number of ways:

  • NYSLRS Retirees Stayed in New York: Seventy-eight percent of NYSLRS’ 413,436 pensioners – 302,954 retirees and beneficiaries – chose to live in New York in 2012. They made up 2.7 percent of the general population, but in some areas of the State, they accounted for nearly five percent of the residents.
  • NYSLRS Retirees Paid New York Taxes: In 2012-2013, NYSLRS retirees paid $1.4 billion in real property taxes – that’s 4.6 percent of the total collected in the entire State. Additionally, NYSLRS retirees paid an estimated $488 million in state and local sales tax in 2012.
  • NYSLRS Retirees Created Jobs: NYSLRS retirees were responsible for the creation of an estimated 61,000 jobs.

Public Pensions Are A Sound Investment In Our Future

The pensions earned by public service retirees don’t just benefit those who receive them, but they pay dividends to local businesses, build strong communities and create jobs. And, as the number of retired public service employees in New York grows, we can look forward to their help in building a stronger New York.

*Read Retirees Contribute (PDF) to see the latest numbers on how NYSLRS retirees have affected the state economy.

NYSLRS Retirees Contribute to the New York Economy

NYSLRS Retirees Build a Strong New York

As baby-boomers hit retirement age, a growing segment of our population is giving back to our state: public service retirees. NYSLRS Retirees are our neighbors, our friends and members of our family, and the pension money paid to retired state and local employees flows directly back into our communities, stimulating and growing our local economies.

Store owner by door with open sign

Approximately 80 percent of the cost of pension benefits comes from investment earnings of the Common Retirement Fund rather than the contributions of taxpayers.

During 2012, retirees of the New York State and Local Retirement System (NYSLRS) were responsible for $11.1 billion in economic activity in New York State. The goods and services NYSLRS retirees use create opportunities for new businesses in New York, help grow existing companies and create jobs. Public service retirees are particularly important to merchants because their retirement income provides a stable foundation of customers for local businesses.

After a career working for the people of New York, public service retirees continue to contribute — not just as engaged citizens, but as individuals who bring value to the communities where they live.

NYSLRS Retirees Live in New York State

In 2012, 302,954 NYSLRS retirees and beneficiaries lived in New York State (outside NYC)  As of March 2013, there were 413,436 NYSLRS retirees — 78 percent of whom have chosen to live here in New York. They are former employees of New York State, the university system, public authorities, local governments, and schools, and many of them give back to their community as volunteers and supporters of charitable causes.  NYSLRS retirees are widely distributed across different regions of New York. They make up 2.7 percent of the general population, but in some areas of the state, they account for nearly 5 percent of the residents.

In 2012, 302,954 NYSLRS retirees and beneficiaries lived in New York State (outside NYC).

As of March 2013, there were 413,436 NYSLRS retirees — 78 percent of whom have chosen to live here in New York. They are former employees of New York State, the university system, public authorities, local governments and schools, and many of them give back to their community as volunteers and supporters of charitable causes.

NYSLRS retirees are widely distributed across different regions of New York. They make up 2.7 percent of the general population, but in some areas of the state, they account for nearly 5 percent of the residents.

NYSLRS Retirees Pay Taxes in New York

Retirees and their beneficiaries paid $1.4 billion in real property taxes — nearly twice their share of the NYS population (excluding New York City) 2012 – 2013 Fiscal Year

Retirees and their beneficiaries paid $1.4 billion in real property taxes — nearly twice their share of the NYS population (excluding New York City) 2012 – 2013 Fiscal Year.

Schools, roads and government services of every sort — they all have something in common: public service retirees help make them possible.

In 2012-2013, NYSLRS retirees paid $1.4 billion in real property taxes — that’s 4.6 percent of the total collected in New York. In some areas of the state, this figure is even higher. In the North Country, NYSLRS retirees pay nearly 8 percent; in the Capital District, nearly 7 percent of the property taxes collected.

Additionally, NYSLRS retirees paid an estimated $488 million in state and local sales tax in 2012.

NYSLRS Retirees Create Jobs

Man Standing by Fruit Kiosk

Spending by NYSLRS retirees and their beneficiaries generated an estimated $246 million in state sales tax in 2012.

Business sectors that cater to the needs of retired consumers are booming. In the coming decades, industries such as health care, restaurants and entertainment are predicted to be areas primed for growth — and retired public employees will be an important part of its customer base.

NYSLRS retirees spend a larger than average share of their income on industries that benefit local businesses and they are responsible for an estimated 61,000 jobs as a result of this spending.

The Foundation of a Strong New York

NYSLRS Retirees and their beneficiaries spent $8.9 billion within New York State in 2012

NYSLRS Retirees and their beneficiaries spent $8.9 billion within New York State in 2012.

The pensions earned by public service retirees are a sound investment in New York’s future. These funds don’t just benefit those who receive them, but pay dividends to local businesses, build strong communities and create jobs. As the number of retired public service employees in our state grows, we can look forward to their help in building a stronger New York.

 

Source: NYSLRS Comprehensive Annual Financial Report; US Census Bureau; OSC Analysis; OSC Annual Report on Local Governments (Rev. 1/14)