Wednesday, March 13, 2019

Do Members of the US Congress Get Paid For Life?

tl;dr - No, elected officials do not get paid for life the day they retire. They are subject to the same Federal defined benefit system as all other federal employees.

A report on "Retirement Benefits for Members of Congress," prepared in November by the nonpartisan Congressional Research Service, outlines how pension benefits are calculated.

The key provision: no member of Congress is eligible for any pension unless he or she has served in Congress for at least five years. (Senators serve six-year terms; House members must seek reelection every two years.)

To collect, a congressman or senator must be age 62, or be at least age 50 with 20 years of service, or be any age with 25 years of service.

Under the most recent pension program, adopted in 1984, the size of a pension is based on the highest three years of a member's salary, the number of years of service and a multiplier, which is 1.7 percent for the first 20 years of service and 1.0 percent for subsequent years.

Here’s an example, using a typical 25-year rank-and-file member who retired this year. The pension would be the sum of two calculations. First, multiply $172,443 [the average salary over the last three years] times 20 years times 0.017. Then, multiply $172,443 times 5 years times 0.01 and add that number to the first calculation. The total: about $67,250 per year.

A three-term congressman (or one-term senator) who has now reached retirement age would be eligible for an annual pension of $17,588 for six years of work. That's generous, but not close to full pay.

Federal law prevents members of Congress from getting full-pay retirement when they leave office. The report says, "By law, the starting amount of a member's retirement annuity may not exceed 80 percent of his or her final salary."

Under the formula, it would take 67 years of service to hit that limit.

So the email saying that members of Congress can "receive full pay retirement after serving one term" is blatantly bogus. It's never full pay and the only one-term members who would be eligible for any pension would be senators.

https://www.politifact.com/ohio/statements/2013/jan/11/chain-email/can-members-congress-retire-full-pay-after-just-on/
And from the horses mouth:

https://www.senate.gov/CRSpubs/ac0d1dd5-7316-4390-87e6-353589586a89.pdf
https://www.senate.gov/CRSpubs/9c14ec69-c4e4-4bd8-8953-f73daa1640e4.pdf
https://www.gao.gov/assets/230/221239.pdf
https://www.cbo.gov/about/careers/benefits

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