LACERA Pension Benefits Generate More Than $5.3 Billion in Economic Activity and Support Over 21,300 Jobs Across California
New economic impact analysis highlights how retiree benefits strengthen local economies, support jobs, and generate tax revenue
PASADENA, Calif., June 12, 2026 (GLOBE NEWSWIRE) -- The Los Angeles County Employees Retirement Association (LACERA) has released a new economic impact analysis showing that pension benefits paid to retirees continue to serve as a powerful economic engine for communities throughout California.
According to the 2026 independent study conducted by Zenith Economics, Economic Impact Analysis of LACERA Pension Benefits, pension spending based on 2025 benefit data generated $5.3 billion statewide and $3.1 billion in annual economic output in Los Angeles County, supporting more than 21,300 jobs across California and 12,900 jobs locally. The analysis also found that this activity generated $750 million in annual tax revenue in Los Angeles County, benefiting public services and infrastructure.
LACERA Chief Executive Officer Luis Lugo emphasized the broader impact of retiree spending across California: “Nearly 83 percent of our retirees stay in California, and more than two-thirds remain in Los Angeles County. They didn't just serve this community. They stayed and continued to contribute to the social fabric of their communities. And LACERA's commitment to benefit security makes that possible. That is what a defined benefit pension delivers, not just for individuals, but for the region as a whole.”
Broader Economic Impact of Pension Spending
Pension spending supports a broad range of industries, including housing, healthcare, food services, retail, and financial services, demonstrating how retiree income circulates through the economy. This ongoing flow of spending sustains business activity across these sectors and contributes to overall economic output.
LACERA pension benefits provide a predictable, stable source of income for retirees, supporting consistent consumer spending in local communities. Because these payments continue regardless of economic conditions, they help maintain steady demand that businesses can rely on.
Board of Retirement Chairman J.P. Harris highlighted the direct community benefits created by pension spending: “Every pension dollar paid to a retiree continues working in our communities. It helps support local businesses, creates jobs, and strengthens neighborhoods across Los Angeles County and California. This study demonstrates that retirement security for public servants also delivers meaningful economic benefits for the broader public.”
Economic Stability Across Communities
Defined benefit pensions also help stabilize the economy during periods of uncertainty. Unlike many sources of consumer spending that may decline during economic downturns, pension benefits continue to be paid each month, providing a reliable source of demand that helps local businesses and communities weather changing economic conditions. The report further shows that LACERA’s economic impact extends throughout Los Angeles County, with effects felt across all supervisorial districts.
Board of Investments Chairman Shawn R. Kehoe emphasized the importance of long-term and sound investment management: “Responsible long-term investment is essential to protecting the retirement security our members have earned. This report highlights our investments create lasting value for communities by supporting economic growth, job creation, and financial stability across the region.”
LACERA provides retirement benefits to more than 77,000 retirees and survivors nationwide, including approximately 42,800 who reside in Los Angeles County. These benefits provide financial security for members while helping sustain regional spending and business activity.
The findings reinforce LACERA’s role in both retirement security and broader economic strength. By delivering dependable lifetime benefits, LACERA helps retirees maintain their quality of life while continuing to support local businesses and generate public revenues where they live.
About LACERA
LACERA administers defined benefit retirement plans for employees of Los Angeles County, Superior Court, and outside districts. Since 1971, LACERA has also administered the Retiree Healthcare Benefits Program. LACERA is further responsible for managing the pension plan and Other Post-Employment Benefits (OPEB) trusts that fund these programs. LACERA is administered by two boards: the Board of Retirement and the Board of Investments.
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