Annual Impact of Pensions on Local Economies

Related Links: CORRE Home Page – The Current Contractor Pension Plan

Those citizens of East Tennessee who believe that the pension problems in Oak Ridge are the concern of only the contractor retirees should read the table below. It was prepared by CORRE and shows how the surrounding local economies will benefit each year if adjustments are made to reduce the inequities in the present system. Analyses of the inequities are given in the related links above. The total impact to Tennessee (mostly adjacent counties) is just over $56 million including the typical multiplying factor. [Note: The original source of the data was DOE and the pension plan administration.] Non participants should be concerned that the local economy is being deprived of its rightful share of the pension payments of the retired contractor employees.

Since there are sufficient monies in the pension trust fund to cover such an adjustment, the local area gets this benefit without any federal tax contribution. This is a rare case where the correction of an obvious inequity by money already available for the purpose has a benefit far beyond those directly involved. Should any citizen of organization not directly involve wish to assist in this endeavor, there is a list of e-mail and access routes to the appropriate legislators and administrators at: The MailCampaign(Appeal 2). This problem, which should be decided on equity, has become a political problem; won't you pleases help solve it.

Annual Impact of Pensions on Local Economies

 

County

No. of Recipients*

Current
Pension*

Proposed
Increase

Economic
Impact**

Anderson

3,630

$57,028,000

$9,694,760

$21,910,158

Blount

234

$2,977,000

$506,090

$1,143,763

Knox

3,204

$44,232,000

$7,519,440

$16,993,934

Loudon

692

$8,733,000

$1,484,610

$3,355,219

Morgan

127

$1,536,000

$261,120

$590,131

Roane

1,575

$19,425,000

$3,302,250

$7,463,085

Other Counties
in Tennessee

1,154

$12,379,000

$2,104,430

$4,756,012

Total

10,616

$146,310,000

$24,872,700

$56,212,302

*Source:     BWXT Benefits Delivery, June 2004.

**Source:   "The Economic Benefits of the U.S. Department of Energy for the State of Tennessee"

Prepared by The Center for Business and Economic Research, University of Tennessee, for the

USDOE, Oak Ridge Operations, May 2004

 

Note: Data does not include retirees living out-of-state