Pension Payouts Grow Sharply : Receipts of Government Plans Still Top Spending

Payouts by state and local government retirement systems grew twice as fast as income to the systems last year, the Census Bureau reported today.

A study of government employee retirement systems found that benefit payments, withdrawals and other payments made by the systems jumped 14.6% between 1982-83 and 1983-84.

At the same time, income to the plans, generated by government and employee contributions and investment income, grew by only 7.2%, the study said.

Nevertheless, receipts by the benefit plans remained considerably higher than payments made, and the cash and security holdings of the retirement systems continued to grow, although not as much as in recent years.

$22.6 Billion Paid Out

Overall, state and local government retirement systems paid out $22.6 billion in 1983-84, the study said. That included $19.8 billion in benefits to retired workers, $2.5 billion in withdrawals by people who left the plans before retirement and $391 million in administrative costs.

The most dramatic change from the year before was among people leaving state and local government jobs before retirement and removing their contributions from the pension plans. This increase occurred as the overall economy strengthened and more jobs opened up in private business.