Congressional pension
Encyclopedia
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. 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.
. 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.
(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}
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.
Long time congressman Ron Paul
has always refused to participate in the congressional pension system, labeling it "immoral". North Carolina congressman Howard Coble
does not participate in the pension system, either.
He campaigned against the system in his first campaign in 1984.
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:
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
made available to members of the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
. 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. The current pension program, effective January 1987, is under the Federal Employees Retirement System
Federal Employees Retirement System
The Federal Employees Retirement System is the current retirement system for employees within the U.S. federal civilian employees...
(FERS), which covers members and other federal employees whose federal employment began in 1984 or later. This replaces the older Civil Service Retirement System
Civil Service Retirement System
The Civil Service Retirement System organized in 1920 and has provided retirement, disability and survivor benefits for most civilian employees in the US federal government. Upon the creation of a new Federal Employees Retirement System in 1987, those newly hired after that date cannot...
(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 IIWorld War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. 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
Social Security (United States)
In the United States, Social Security refers to the federal Old-Age, Survivors, and Disability Insurance program.The original Social Security Act and the current version of the Act, as amended encompass several social welfare and social insurance programs...
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.
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.(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}
Controversy
In 2003, after James TraficantJames Traficant
James Anthony Traficant, Jr. is a former Democratic Representative in the United States Congress from Ohio . He represented the 17th Congressional District, which centered on his hometown of Youngstown and included parts of three counties in northeast Ohio's Mahoning Valley...
was expelled from Congress, several Congressmen tried passing a bill that would prevent expelled members from receiving their pensions. The bill
Bill (proposed law)
A bill is a proposed law under consideration by a legislature. A bill does not become law until it is passed by the legislature and, in most cases, approved by the executive. Once a bill has been enacted into law, it is called an act or a statute....
was stalled and eventually dropped after being sent to the House Administration and Reforms committee
United States House Committee on House Administration
The United States House Committee on House Administration deals with the general administration matters of the United States House of Representatives.-Jurisdiction:...
for review.
Long time congressman Ron Paul
Ron Paul
Ronald Ernest "Ron" Paul is an American physician, author and United States Congressman who is seeking to be the Republican Party candidate in the 2012 presidential election. Paul represents Texas's 14th congressional district, which covers an area south and southwest of Houston that includes...
has always refused to participate in the congressional pension system, labeling it "immoral". North Carolina congressman Howard Coble
Howard Coble
John Howard Coble is the U.S. Representative for , serving since 1985. He is a member of the Republican Party.-Early life, education, and pre-political career:Coble was born in Greensboro, North Carolina...
does not participate in the pension system, either.
He campaigned against the system in his first campaign in 1984.
Federal pension forfeiture act
Unofficially known as the 'Duke CunninghamDuke Cunningham
Randall Harold Cunningham , usually known as Randy or Duke, is United States Navy veteran, convicted felon, and former Republican member of the United States House of Representatives from California's 50th Congressional District from 1991 to 2005.Cunningham resigned from the House on November 28,...
Act', the Federal Pension Forfeiture Act is a piece of legislation introduced by Senators John Kerry
John Kerry
John Forbes Kerry is the senior United States Senator from Massachusetts, the 10th most senior U.S. Senator and chairman of the Senate Foreign Relations Committee. He was the presidential nominee of the Democratic Party in the 2004 presidential election, but lost to former President George W...
(D
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
-MA
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
) and Ken Salazar
Ken Salazar
Kenneth Lee "Ken" Salazar is the current United States Secretary of the Interior, in the administration of President Barack Obama. A member of the Democratic Party, he previously served as a United States Senator from Colorado from 2005 to 2009. He and Mel Martinez were the first Hispanic U.S...
(D-CO
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
) 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