Congressional pension

Congressional pension is a pension made available to members of the United States Congress. Members who participated in the congressional pension system are vested after five (5) years of service. A full pension is available to Members 62 years of age with 5 years of service; 50 years or older with 20 years of service; or 25 years of service at any age. A reduced pension is available depending upon which of several different age/service options is chosen. If Members leave Congress before reaching retirement age, they may leave their contributions behind and receive a deferred pension later.^[1] The current pension program, effective January 1987, is under the Federal Employees Retirement System (FERS), which covers members and other federal employees whose federal employment began in 1984 or later. This replaces the older Civil Service Retirement System (CSRS) for most members of congress and federal employees.

History of Congressional Pension

Members of Congress voted to extend pension benefits to the legislative branch under the CSRS (formerly limited to the executive branch) in January 1942 under a provision of P.L. 77-411. Congress repealed their pension two months later, due to public outcry in the early months of America's involvement in World War II. It was not until after the war, in 1946, that Congress would be covered under the CSRS with the passage of P.L. 79-601. The justification this time was that a pension would "bring into the legislative service a larger number of younger members with fresh energy and new viewpoints" by encouraging older Members to retire.

The Social Security Amendments of 1983 required all Members of Congress to participate in Social Security beginning January 1, 1984. As Social Security and CSRS benefits sometimes overlapped, Congress called for the development of a new federal employee retirement program to complement Social Security. This new plan was enacted as the Federal Employees' Retirement Act of 1986. This act created the FERS program, under which new Members of Congress are currently covered.

When the FERS program went into effect, all Members elected in 1984 or later were automatically enrolled in the new plan. More senior Members were free to remain under the CSRS or enroll in the new FERS plan.^[2]

Pension amount

The pension amount is determined by a formula that takes into account the years served and the average pay for the top three years in terms of payment. In 2002, the average pension payment ranged from $41,000 to $55,000. For example, a member of Congress who worked for 22 years and had a top three-year average salary of $153,900 would be eligible for a pension payment of $84,645 per year.^[3] (A sitting Congressman with 22 years service in 2011 entered Congress in 1989. As such they are under the FERS retirement program. While the high three concept is correct the totals are wrong. Such a Congressman receives their High 3 (153900) times 1.7%, Times years of service (up to 20) then 1% after that.. That is $153,900x.017x20 = $2,613.30 x 20 = $52,326 plus $3,078. for a total of $55,440 Plus a reduced SS pension.) ( Member of Congress or Congressional Employee (or any combination of the two) Must have at least 5 years of service as Member and/or Congressional Employee 1.7% of your high-3 average salary multiplied by your years of service as a Member of Congress or Congressional Employee which do not exceed 20, plus 1% of your high-3 average salary multiplied by your years of other service){http://www.opm.gov/retire/pre/fers/computation.asp}^[4]

Controversy

In 2003, after James Traficant was expelled from Congress, several Congressmen tried passing a bill that would prevent expelled members from receiving their pensions. The bill was stalled and eventually dropped after being sent to the House Administration and Reforms committee for review.^[5]

Long time congressman Ron Paul has always refused to participate in the congressional pension system, labeling it "immoral".^[6] North Carolina congressman Howard Coble does not participate in the pension system, either. ^[7] He campaigned against the system in his first campaign in 1984.^[7]

Federal pension forfeiture act

Unofficially known as the 'Duke Cunningham Act', the Federal Pension Forfeiture Act is a piece of legislation introduced by Senators John Kerry (D-MA) and Ken Salazar (D-CO) that would cause a member of Congress to lose the pension due to:

• Bribery of public officials or witnesses
• Conspiracy to commit offense or to defraud the United States
• Perjury while denying the commission of bribery or conspiracy
• Subornation of perjury committed in connection with false denial or false testimony of another individual^[8]

References

1. ^ "Capitol Questions". C-Span. 28 September 2000. http://www.c-span.org/questions/weekly68.htm. Retrieved 2007-03-20. 
2. ^ "CRS Report for Congress". Congressional Research Service. 9 February 2007. http://www.senate.gov/reference/resources/pdf/RL30631.pdf. Retrieved 2009-07-03. 
3. ^ "Congress has a Pension Plan". CNNMoney. January 20, 2006. http://money.cnn.com/2006/01/20/commentary/wastler/wastler/index.htm. Retrieved 2007-03-09. 
4. ^ "Error: no |title= specified when using {{Cite web}}". 
5. ^ "'Duke' Keeps his Pension". The Hill. November 30, 2005. http://209.85.165.104/search?q=cache:f66dCgmvBLkJ:www.hillnews.com/thehill/export/TheHill/News/Frontpage/113005/news1.html+%22congressional+pension%22&hl=en&ct=clnk&cd=5&gl=us. Retrieved 2007-03-09. 
6. ^ "Paul refuses to participate in "immoral" pension system". 1997-01-30. Archived from the original on 2007-05-18. http://web.archive.org/web/20070518101118/http://www.house.gov/paul/press/press97/prjan30.htm. Retrieved 2007-05-24. 
7. ^ ^{a b} Zagaroli, Lisa (2008-12-10). "Dole, Hayes to exit with pensions". Charlotte Observer. http://www.charlotteobserver.com/local/story/405513.html. Retrieved 2008-12-16. "Rep. Howard Coble, a Republican from Greensboro, campaigned against the congressional pension system in his first race in 1984 and has never enrolled in it." ^{[dead link]}
8. ^ "Salazar, Kerry Move to Deny Pensions to Lawbreaking Lawmakers". U.S. Senator Ken Salazar. February 9, 2006. http://salazar.senate.gov/news/releases/060209congpens.htm. Retrieved 2007-03-09.