About 3 percent of state and local spending goes toward pension benefits for employees, according to the most recent Census Bureau data on government finance.

Pension expenses actually declined from about 4 to 3 percent between 1980 and 2009, as a national average. The most they cost was 4.2 percent in 1985, and they hit a low point of 2 percent in 2001 before beginning to rise to current levels. Some states spent significantly more, such as Illinois' pension expenses, which accounted for 4.8 percent of the budget in 2009.

A report from the National Association of State Retirement Administrators notes that overall, national spending was fairly steady. About 60 percent of pension plan revenue is derived from investment returns, while employees contribute 12 percent and the government 28 percent. Levels of contribution and the expense to government vary, influenced by benefit levels and the amount of unfunded liability states posses in their plans.

According to NASRA, the data reveal that pension plans cannot be blamed for the fiscal difficulties of state and local governments in general. The organization also notes that between one-quarter and one-third of public employees below the federal level pay into pensions instead of Social Security, which compensates for higher pension costs. A sometimes overlooked factor in the current state of benefit plans is the fact that many were underfunded before the financial crisis, according to NASRA, which became more of a problem as revenues fell in recent years.