What is the retirement salary and health benefits for Members of Congress?
Barbara Asked:
Why do the members of Congress receive a full salary upon their retirement, even if they only serve one term? And why do they have the same continuing health benefits upon retirement? It seems that if Congress wants to be financially responsible, they would have the same retirement benefits as other government workers.
We Found:
According to 2008 the CRS Report for Congress, prior to 1984, neither federal civil service employees nor Members of Congress paid taxes to Social Security, nor were they eligible for Social Security benefits. Members of Congress and other federal employees were instead covered by a separate pension plan called the Civil Service Retirement System (CSRS). Because the CSRS was not designed to coordinate with Social Security, Congress directed the development of a new retirement plan for federal workers. The result was the Federal Employees’ Retirement System Act of 1986. The Federal Employees’ Retirement System (FERS) went into effect in 1987, and employees first hired in 1984 or later were automatically enrolled in this plan. Employees who had been in the federal government before 1984 were given the option to remain in CSRS — without Social Security coverage — or to switch to FERS. Because of the uncertain tenure of congressional service, FERS was designed, as CSRS had been, to provide a larger benefit for each year of service to Members of Congress and congressional staff than to most other federal employees. Members of Congress also become eligible for retirement annuities under CSRS and FERS at an earlier age and with fewer years of service than most other federal employees. However, Members of Congress and congressional staff pay a higher percentage of salary for their retirement benefits than do most other federal employees.
As of October 1, 2007, 435 retired Members of Congress were receiving federal pensions based fully or in part on their congressional service. Of this number, 286 had retired under CSRS and 149 had retired either with service under both CSRS and FERS or with service under FERS only. Members who had retired under CSRS had completed, on average, 20 years of federal service. Their average annual CSRS annuity in 2007 was $63,696. Those who had retired under FERS had completed, on average, 16 years of federal service. Their average retirement annuity in 2007 (not including Social Security) was $36,732. The average age of retired Members of Congress receiving retirement annuities in 2007 was 78 for those who had retired under CSRS and 69 for those who had retired under FERS.
Members become vested in (legally entitled to) a pension benefit under CSRS or FERS after five years of service. The age and service requirements for retirement eligibility are determined by the plan under which a Member is covered at the time of retirement, regardless of whether he or she has previous service covered under a different plan. Depending on a Member’s age and years of service, a pension can be taken immediately upon retirement or only on a deferred basis. Likewise, the Member’s age and years of service, as well as the starting date of the annuity, will determine whether he or she is eligible for a full pension or a reduced pension.
For more information, visit the following cites:
http://www.senate.gov/CRSReports/crs-publish.cfm?pid=%270E%2C%2APLC8%22%40%20%20%0A
http://www.senate.gov/reference/reference_index_subjects/House_of_Representatives_vrd.htm
