Senate & Congressional Retirement Plan

The United States Congress has its own pension system.

Members of the United States Congress participate in a pension system that is designed to provide for the safe retirement of its membership. Created after World War II in 1946, the congressional pension system has remained mostly free of controversy as the numbers involved in its maintenance are not large compared with the rest of the federal budget. Members of Congress rely on the pension system for their long-term financial well-being.

Eligibility

Any member of Congress who has served for at least five years can retire and receive pension benefits at the age of 62. If any member of Congress has served for a period of at least 20 years, he can retire at the age of 50. If a member has served 25 years in Congress, he can retire at any age. This eligibility compares favorably with many pensions currently available in the private sector.

Formula

The money that a member of Congress will receive through the pension system is determined by a formula calculating her years of service and average pay. The top three years of earnings are calculated together and then averaged. The member of Congress will receive up to 80 percent of her top average salary. After retirement, cost of living adjustments will also be applied, which will likely further raise the amount of money a former congressperson receives.

Critics

Many have criticized the congressional pension system for being too generous, and have used it as an example of hypocrisy when cuts to other pension systems are proposed. The National Taxpayers Union has estimated the congressional pension system as being two to three times more generous than the average corporate pension. Two members of the House of Representatives, Ron Paul from Texas and Howard Coble from North Carolina, currently abstain from the pension system and have criticized it along similar lines.

Exclusions

There have been repeated attempts to pass legislation that would bar former members of Congress who were convicted of certain federal offenses such as bribery from receiving pension benefits. Typically, these bills have been proposed following a notable scandal involving one or more members of Congress. Currently any member of Congress who has served the requisite number of years is eligible for a pension, even if they have been previously expelled from the body.

References

• CNN Money; Congress Has A Pension Plan; Allen Wastler; January 20, 2006
• "Washington Post"; Your Questions About Congress Answered; March 9, 2011
• United States Senate; Retirement Benefits for Members of Congress; February 9, 2007
• WorldNetDaily; Congress' Cushy Pension System; Paul Sperry; July 11, 2001
• Snopes.com; Congressional Pensions; September 5, 2009
• "Washington Post"; House Approves Congressional Pension Bill; January 24, 2007

Resources

• House of Representatives
• United States Senate
• United States Congress