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US Congress members can receive a pension based on their years of service. The pension system has changed over time, with some members choosing not to participate. The retirement plan offered is generous, with retired members receiving an average of $41,000 to $55,000 annually. Controversy surrounds the fact that even members expelled for ethics violations or convicted of crimes still receive their pensions. Attempts to change this have been made, but no bill has become law.
US Congressmen who have served a minimum number of years are eligible to receive a congressional pension. This is an annual payment intended to support the retired former legislator. The amount paid depends on the age and length of service of the legislator.
Congress introduced the first congressional pension in 1942. The legislation proved unpopular, due in part to the atmosphere of financial sacrifice prevailing in the United States during World War II, and was quickly repealed. In 1946, Congress reinstated the congressional pension.
The mechanism of the Congressional pension has changed from time to time since its introduction. Legislation in 1946 established a congressional pension by including members of Congress under the Civil Service Retirement System (CSRS), a federal program that provided retirement benefits to government employees. In 1987, Congress determined that all future congressional pensions would be administered by the new Federal Employees Retirement System (FERS). This law applies to all members of Congress elected after 1984; those who served before 1984 can choose to participate in the FERS plan or remain in the existing CSRS plan.
Participation in the Congressional Retirement Plan is voluntary and not all members of Congress are enrolled. Some choose not to deduct pension payments from their salary. Others have even actively campaigned against retiring Congress. For example, Texas Republican Congressman Ron Paul criticized the pension system in the 1990s, pointing out that it paid much higher pensions than most people could hope to earn working in the private sector.
The retirement plan offered to members of Congress by the FERS is really generous compared to most retirement plans. In 2002, retired congressmen received an average of between $41,000 and $55,000 US Dollars (USD) annually. This represents a high rate of return on their payments. It has been estimated that lawmakers only pay about 20% of their pensions.
The Congressional pension system has occasionally been the subject of controversy. Notably, even members of Congress expelled for ethics violations or convicted of crimes still receive their pensions. Several legislative attempts have been made to change this, most notably the Congressional Pension Forfeiture Act of 2007, created in response to the 2005 scandal surrounding corrupt lawmaker Randall “Duke” Cunningham. Although the bill passed the Senate, it was sent to the House Oversight and Government Reform Committee, which did not report on it. As a result, the bill never became law.
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