US Congressional Pensions

On November 4, 2011, it was reported that a Congressman from North Carolina has been trying to change the Congressional pension (has 3 bills with no co-sponsors) for 28 years. I agree with him, the government needs to set an example and live by the rules they set. On February 17, 2012 they did pass a bill to align their pensions with other federal workers but I’m not sure what that will really look like so let’s look at what the 2011 salaries and pensions for Congress, the Vice President (VP) and the President were. Rank and file members of the House and Senate earn $174,000 a year, the Leaders of the House and Senate get $193,400, and the Speaker earns $223,500. As I already said, they get a cost living raise annually unless they vote not to take it. The President earns $400,000 including a $50,000 expense allowance and the Vice President gets $230,700. I believe they pay taxes on these earnings and do pay into Social Security (SS).

As of October 1, 2006, the 290 retired members of Congress were receiving an average annual pension of $60,972 ($17,681,880). Members of Congress get a pension at: (a) age 50 with 20 years of service or (b) any age after completing 25 years of service or (c) age 62 with a minimum of 5 years of service. Their pension depends on the years of service and the average of the highest 3 years of their salary and the starting amount of their retirement is not to exceed 80% of their final salary. In comparison, I know my SS was not based on my highest 3 years of pay. And it’s said that 46 year old Anthony Weiner gets to keep his $54,000 a year pension that is collectible starting at age 62. It is also being said that his pension and benefits during his lifetime could top $1 million if he invested aggressively in the Thrift Savings Plan (whatever that is).

Now, each former President is paid a lifetime taxable pension equal to the annual rate of basic pay for the head of an executive federal department, the same annual salary paid to secretaries of the cabinet agencies – in 2011, that amount is $199,700. Each former President and VP may also take advantage of funds allocated by Congress to help facilitate their transition to private life. As an example Congress authorized a total of $1.5 million for the transition expenses of outgoing President George H. W. Bush and VP Quail. For 6 months after a President leaves office he gets funds for an office staff – during the first 30 months it’s $150,000 year; thereafter the combined rate of staff compensation cannot exceed $96,000 annually (for life). In addition, the GSA makes travel expenses available for former Presidents and no more than 2 staff members (lifetime). Widows get a $20,000 annual lifetime pension and mailing privileges. In addition, the Secret Service provides lifetime protection for Presidents and spouses and surviving spouses of former Presidents until remarried. And, former Presidents, their spouse & children are entitled to treatment in military hospitals. The Secret Service is provided for VPs and they get paid state funeral expenses with military honors whether or not they were in the military.

This seems like a lot of money for so few. I know of no company that pays their workers more or gives benefits greater than those given to management. Our government officials have forgotten that they work for us. They are the workers, we are the employers. Politicians need to end their pension plans (1984 Civil Service Retirement System and 1986 Federal Employees Retirement System) and have 401Ks and/or be in the SS system. Ann Coulter says the current system allows SS benefits to go to Donald Trump. I say okay, you pay – you play (unless without tax realignment it’s thought the rich should be exempt from collecting; this is okay with me and probably the average American). Trump’s 6.2% of his salary/income into SS and 1.45% into Medicare funds can only help especially if the money earned interest.

In addition to changing their pensions Congress needs to forego their transition, travel and staff expenses after employment as we don’t get these. According to the US Constitution, all men are created equal and this is not what our government is exhibiting. Perhaps ending all their perks will get both parties more in touch with the people they work for. If the Tea Party wants to make a point, let it be this – the legislators shouldn’t get more than their employers - us. If the American people do not have health insurance, retirement, etc., then neither should Congress. If the military and those on SS are held hostage when government fails to do its job then politicians shouldn’t be paid either.