To avoid participating in the dissemination of hoaxes and false information, may I recommend that you consider removing the article dated April 11, 2003 entitled the Truth about Social Security? It contains little that could be considered truth and, in fact, combines a long running internet hoax with new material added.
The 85% tax on Social Security benefits is true and you can thank President Clinton and the Democrats for adding this tax on your pension in 1993. While the Q and A section may be more or less historically correct, the section about Congressional pensions has no basis in fact.
Here are the facts:In the article, Congressman White and Senator Byrd are stated to expect up to $7.8 million in their last years. Congressman White is a fictional character. There is no sitting or recent Member by that name eligible for a pension. Senator Byrd is 86 years old and still in the Senate, so he is not drawing retirement. If he were to retire today, it would take over 65 years to reach the $7.8 million stated in the article.
Members of Congress (and their staff) do pay into Social Security, and have been since the law was changed in 1983 which put all federal employees hired after that date, and ALL Members of Congress (regardless of when they entered Congress), into the Social Security system (Public Law 98-21). The old Civil Service Retirement System (CSRS) remains in effect for those participating prior to 1983 and a new system was created called the Federal Employees Retirement System
(FERS), (Public Law 99-335).
Congressional pensions, like those of other federal employees, are financed through a combination of employee and employer contributions. All Members of Congress contribute to their pension from their monthly paycheck.
Under the system in place prior to 1983, Members contribute 8% of their salary to their pension. In return, these Members received retirement benefits ranging from $12.5% of their pay, if they had a minimum of 5 years service, to 80% of their pay, if they had a minimum of 32 years of service.
Never under the old civil service system did Congressmen receive their full salary at retirement as is falsely stated in the article.
Under the FERS system currently in effect for Members elected since 1983, Members pay 1.3% of their pay into the retirement system and 6.2% of their pay into Social Security. Retirement annuities range from 8.5% of their salary to 34% for those serving 20 years or more.
Under both CSRS and FERS, Members of Congress are eligible for a pension at age 62 if they have completed at least 5 years of service. Members 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 3 years of salary. By law, the starting amount of a Member's retirement annuity may not exceed 80% of his or her final salary.
As of October 1, 2000, 409 retired Members of Congress were receiving federal pensions based fully or in part on their congressional service. Of this number, 356 had retired under CSRS and were receiving an average annual pension of $52,464. Fifty-three Members had retired either with service under both CSRS and FERS or with service under FERS only. Their average annual pension was $46,932 in 2000.*
I hope this is helpful in clearing up misconceptions about congressional pensions.
Russell L Roberts
Office of Congressman John L. Mica*Source: Congressional Research Service, Library of Congress
