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CalSTRS report: benefit payments inject about $16.8 billion into California, generate $14 billion in value added
Summary
CalSTRS staff presented an economic impact study showing retirement benefit payments in fiscal year 2022–23 totaled about $19.9 billion, with roughly $16.8 billion paid into California; staff estimate that spending supports tens of thousands of jobs, $7.2 billion in income and $6 billion in tax revenue statewide.
CalSTRS staff told the Teachers Retirement Board that retirement benefit payments are a durable economic driver across California, and staff presented a new economic impact study that models how those payments ripple through local economies.
Tom Buffalo, head of research, said CalSTRS used 2022–23 1099 tax reporting data and household spending profiles from the Bureau of Labor Statistics to model recipient spending. The raw data showed $19.9 billion in benefits paid in 2022–23 and about $16.8 billion of those payments were spent in California, Buffalo said.
Using the IMPLAN input‑output model and demographic spending proxies, the analysis estimated benefit spending supports tens of thousands of jobs in California, generates about $7.2 billion in personal and business income, contributes roughly $14 billion in value added to the state’s gross domestic product and produces an estimated $6 billion in tax revenue across federal, state and local governments.
Buffalo said about 352,000 benefit recipients were identified in the 1099 data, with roughly 289,000 (about 82 percent) living in California. He described the impacts as especially meaningful in smaller regional and rural economies, where benefit spending represents a larger share of local economies than in major metropolitan hubs.
The study will be posted on calstrs.com with district‑level snapshots and a QR code so legislators and members of the public can view local impacts, Buffalo said.
Ending: Board members asked about outreach and how staff plan to share the findings with local legislators and stakeholders; Buffalo said the communications and governmental relations teams will distribute district snapshots and the QR code landing page.
