The Buck Doesn't Stop Here: The CalPERS Pension Buck Identifies the Income Sources of Public Employee Pensions
October 15, 2014
The updated CalPERS Pension Buck illustrates the sources of income that fund public employee pensions. Pension fund income over the last 20 years (as of June 2014) shows that every dollar spent on public employee pensions comes from 67 cents of investment earnings, 21 cents from employers and 12 cents from employees.
Pensions are jointly funded by employer and employee contributions, which are invested so that pension fund dollars grow over time. Workers currently contribute up to 15.25 percent of their paycheck to help fund their own pensions.
CalPERS pension payments generate more than $30 billion of economic activity per year in California, supporting more than 113,000 jobs and generating nearly $800 million in sales and property tax revenue every year.