Congressional pension: Difference between revisions

'''Congressional pension''' is a [[pension]] made available to members of the [[United States Congress]]. {{as of|2019}}, 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.<ref>[http://legacy.c-span.org/questions/weekly68.asp C-SPAN's Capitol Questions<!-- Bot generated title -->] {{webarchive|url=https://archive.is/20120716164307/http://legacy.c-span.org/questions/weekly68.asp |date=2012-07-16 }}</ref> 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.

 

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 Congress repealed their pension two months later, due to public outcry in the early months of America's involvement in [[World War II]].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 accrual rate for congressional service between 1984 to December 31, 2012 is covered by a FERS "special" computation that is similar to that for Federal employees such as First Responders, FBI Special Agents, and Air Traffic Control Officers. The accrual rate is 1.7% for the first 20 years and 1.0% for each year beyond the 20th. The basic retirement annuity under FERS is equal to the (Average High-3 Salary x .017 x Years of Service through 20 years)+(High-3 Salary x .01 x Years of Service over 20)= Annual Pension

Members who began congressional service before 1984 and who elected to join FERS will receive credit under FERS from January 1, 1984, forward. Thus, at the close of the 108th Congress in December 2004, participants had a maximum of 21 years of service under FERS. Assuming that a Member retired at the end of 2004 with 20 years of congressional service under FERS, and a high-3 average salary of $154,267, the initial annual FERS pension in 2005 would be: [$154,267 x .017 x 20] = $52,451 There is no maximum pension under FERS. (It would take 66 years of service under FERS to reach the 80% maximum permissible under CSRS.) The smallest unreduced FERS pension is 8.5% of high-3 salary with five years of service (.017 x 5 years), which is payable no earlier than age 62. A Member with 10 years of service who takes a FERS pension at the earliest allowable age of 55 would receive a reduced pension equal to 11% of high-3 salary (.017 x 10 years, reduced by .05 times the seven-year difference between the individual’s age at retirement and age 62).<ref name="CRS Report - Retirement Benefits for Members of Congress"/>

 

In 2002, the average congressional pension payment ranged from $41,000 to $55,000.<ref>{{cite web| url=http://money.cnn.com/2006/01/20/commentary/wastler/wastler/index.htm| title=Congress has a Pension Plan| date=January 20, 2006| accessdate=2007-03-09| publisher=CNNMoney}}</ref> {{as of|2014|11}}, senior Members of Congress who have been in office for at least 32 years can earn about $139,000 a year.<ref name="cnn2014">{{cite web| url= http://money.cnn.com/2014/11/05/retirement/congressional-pensions |title= Fat pensions for outgoing lawmakers | first= Chris |last=Isidore |work= [[CNNMoney]] | date= November 6, 2014 | accessdate= November 6, 2014}}</ref>

 

All Senators and those Representatives serving as Members prior to September 30, 2003, may decline this coverage. Representatives entering office on or after September 30, 2003, cannot elect to be excluded from such coverage. Members who were already in Congress when Social Security coverage went into effect could either remain in CSRS or change their coverage to FERS.<ref name="auto"/>

 

* CSRS and Social Security;

* The “CSRS Offset” plan, which includes both CSRS and Social Security, but with CSRS contributions and benefits reduced by Social Security contributions and benefits;