Got this interesting little email today about members of congress NOT paying into social security. Well, with a few clicks of the mouse, I found out that it isn't accurate, BUT the reality seems far worse.
How long will YOU be paying the retirement benefit for Harry Reid? Dina Titus? Shelley Berkley?
How about John Ensign?
Dean Heller?
Just one little change, and we can save billions! When the rest of America has lost half of their employee-paid retirement account balance, Congress has a safe and secure pension, funded by YOU. Why? Is their single-digit approval rating really worth our kids footing the bill for their never-ending retirement benefits?
When the program was launched in the 1930s, Social Security benefits were not suitable for congress - persons of their rare elevation in society. They felt they should have a special plan for themselves. So, many years ago they voted in their own benefit plan. If they buck every intention of the founding fathers, and stay in office for 50 years, they could accumulate the equivalent of 80% of one year's salary. But at that length of "service," they can draw on that pension for far, far longer than one year.Their cost for this excellent plan is 1.6% of their annual compensation during years of "service" in the U.S. House and/or Senate.From our own Social Security Plan, which you and I pay (or have paid) into, every payday until we retire (which amount is matched by our employer), we can expect to get an average of $1,000 per month after retirement.
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The facts: The law requires all members of Congress to participate in Social Security as of January 1, 1984, regardless of when they first entered Congress. There are two different pension plans that may apply to a retired member of congress: CSRS (not designed to coordinate with Social Security), and Federal Employees Retirement System (FERS), which does coordinate a federal pension with Social Security.
Members of Congress are eligible for a pension at age 62 if they have completed at least five years of service. They are eligible for a pension at age 50 if they have completed 20 years of service, or at any age after completing 25 years of service. The amount of the pension depends on years of service and the average of the highest three years of salary. By law, the starting amount of a member's retirement annuity may not exceed 80 percent of his or her final salary.
As of October 1, 2000, the average annual pension for members of Congress who have retired under CSRS is $52,464, and $46,932 for retirees under FERS-only or both FERS/CSRS.
The current salary (2009) for rank-and-file members of the House and Senate is $174,000 per year. According to the Congressional Research Service, 413 retired Members of Congress were receiving federal pensions based fully or in part on their congressional service as of Oct. 1, 2006. Of this number, 290 had retired under CSRS and were receiving an average annual pension of $60,972. A total of 123 Members had retired with service under both CSRS and FERS or with service under FERS only. Their average annual pension was $35,952 in 2006.
