Tuesday, October 27, 2015

The Truth About The President's And Congressional Pensions

By now most of us have seen the follow meme either on facebook or via e-mail:

The person that started this meme unfortunately has their facts wrong.  Here is the accurate information:

• Members of Congress earn their $174,000 salaries only during their elected terms. (Nope, not for life.)

• They’re eligible for congressional pensions only after five years of service. (For a member of the House, that would mean getting elected to office at least three times.)

Those pensions can’t be tapped until retirement age — and can’t be collected while a lawmaker still gets a federal salary. So John Kerry, for example, can’t collect his congressional pension while he serves as secretary of state, according to Pete Sepp of the National Taxpayers Union.

• The size of the pension depends on years of service and the average of a lawmaker’s highest three years of salary. The exact formula depends on when they started. Meanwhile, every paycheck, lawmakers contribute to both their pensions and Social Security.

• Most congressional pensions are nowhere near a lawmaker’s salary. Under a pre-1984 retirement formula, it couldn’t be more than 80 percent of a lawmaker’s final salary, not counting cost-of-living adjustments. Under current rules, lawmakers could theoretically get more than 80 percent of their salary, but most would need to serve more than 66 years to get that.

No comments:

Post a Comment