MYTH: Members of Congress are exempt from insider trading laws.
FACT: Both a Congressional Research Service Report and House Administration Committee memo indicates that Members of Congress are subject to the same insider trading rules as the general public.
MYTH: Members of Congress, their staff and their families do not have to pay back student loans.
FACT: There is no student loan benefit for Members of Congress or their family. Some congressional staff members can have their student loans repaid over several years in a program available to many federal employees. Factcheck.org explains in detail.
MYTH: Members of Congress can retire and receive their full salary after serving just a single, two-year term.
FACT: Members of Congress have no tenure. All House Members are elected every two years. Congressional Member pension, if earned, is similar to all federal employees. A 2007 CRS report outlines the pension program:
Members of Congress first elected in 1984 or later are covered automatically under the Federal Employees’ Retirement System (FERS), unless they decline this coverage. Members covered by FERS also pay 1.3% of full salary to the Civil Service Retirement and Disability Fund. Members of Congress are eligible for a pension at age 62 if they have completed at least five 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 three 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, 2006, 413 retired Members of Congress were receiving federal pensions based fully or in part on their congressional service. Of this number, 290 had retired under CSRS [the pre 1984 system] 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.
According to Politifact.com, a three-term congressman would be eligible for $17,588 after six years of work upon reaching retirement age.
MYTH: Members of Congress do not participate in Social Security but have their own separate retirement fund.
FACT: According to the Social Security Administration, All Members of Congress, the President and Vice President, Federal judges, and most political appointees, were covered under the Social Security program starting in January 1984.
They pay into the system just like everyone else. Thus all Members of Congress, no matter how long they have been in office, have been paying into the Social Security system since January 1984.
MYTH: Members of Congress can vote themselves a pay raise at any time.
FACT: According to the Congressional Research Service, Congressional pay raises are calculated based on changes in the Employment Cost Index (ECI). The projected 2011 adjustment of 0.9% was known when the Bureau of Labor Statistics (BLS) released data for the ECI change during the 12-month period from December 2008 to December 2009 on January 29, 2010. This adjustment would have equaled a $1,600 increase, but Congress voted to reject that pay increase. P.L. 111-322, which was enacted on December 22, 2010, prevented any adjustment in GS base pay before December 31, 2012. Since the percent adjustment in Member pay may not exceed the percent adjustment in the base pay of GS employees, Member pay is also frozen during this period.
Pay for Members of Congress in 2011 and 2012 will remain at the 2009 and 2010 level.
MYTH: Members of Congress receive free health care.
FACT: According to FactCheck.org, “Members of Congress have good health insurance by any standard, but it’s not free and not reserved only for them – and it’s not government insurance. House and Senate members are allowed to purchase private health insurance offered through the Federal Employees Health Benefits Program, which covers more than 8 million other federal employees, retirees and their families.” Likewise, Members of Congress and their personal staffs were included in Obamacare.
MYTH: Members of Congress are exempt from following the laws they enact.
FACT: Again, according to FactCheck.org: “…following the "Republican Revolution" of 1994, which put republicans in control of both House and Senate, Congress passed the Congressional Accountability Act (PL 104-1), which applies a dozen civil rights, labor and workplace safety regulations to the legislative branch.
” There is, however, a constitutional exemption to some laws. Article 1 section 6 of the constitution states Members of Congress, “shall in all Cases, except Treason, Felony and Breach of the Peace, be privileged from Arrest during their Attendance at the Session of their respective Houses, and in going to and returning from the same; and for any Speech or Debate in either House, they shall not be questioned in any other Place.”
MYTH: Members of Congress do not have to pay income taxes.
FACT: This information is completely false. Members of Congress pay income taxes just like every other American. The U.S. tax code states that everyone who receives revenue must pay an income tax, including Representatives and Senators. That covers income derived from private business, government salaries, military pay, and even unemployment checks.
MYTH: Members of Congress get free housing in Washington, D.C.
FACT: Members of Congress do not receive free housing or any housing reimbursement.
With most Americans struggling to save for retirement, it is common to question how much elected leaders earn in retirement. Generally, there is plenty of misleading news about the benefits that members of Congress earn in retirement. Here is the truth about how much senators and members of the House receive in retirement.
Senators earn a pension of up to 80% of their final salary, and they must have completed at least five years of service to be eligible for a pension. Since senators serve a six-year term, senators who have served a full term are eligible to receive a pension. Depending on when they joined Congress, senators receive retirement benefits from the CSRS plan or FERS plan; FERS comprises social security, pension, and the Thrift Savings Plan (TSP).
Since 2009, the Congressional salary has been $174,000 per year, while those in leadership positions earn slightly above this rate. The speaker of the House earns $223,500 per year, while party leaders of the senate and House of Representatives earn $194,400 per year.
Members of Congress have not received a salary increase since 2009. Before 2009, senators earned $169,300 per year, and this annual salary was increased to the current $174,000. Senators and members of the house also receive annual cost-of-living increases that are available to federal workers, and the increase takes effect on January 1 of the following year, unless senators vote to decline the increase.
There is a popular rumor that senators receive their annual salary for life and that they do not pay social security taxes. However, this information is false, and it is not based on facts.
Here are the benefits that senators make in retirement:
Before 1984, members of Congress were not required to pay Social Security taxes, and were, therefore, ineligible to receive social security benefits.
During this period, senators and other federal civil service employees were covered by the Civil Service Retirement Plan (CSRS).
However, an amendment to the Social Security act in 1983 made it mandatory for new federal civil employees to participate in Social Security. The amendments also made it mandatory for members of Congress to pay social security taxes effective January 1, 1984. When the Federal Employees Retirement System (FERS) was established in 1986, Congressmen were automatically enrolled in the new plan and became eligible to receive pensions from FERS.
Additionally, the vice president earns a pension based on their role as President of the Senate and their cumulative years of public service. Members of Congress receive a pension depending on their age at retirement, years of service, and when they joined Congress. The maximum pension a senator can receive is 80% of their final salary.
Members of Congress elected into office since 1984 are automatically enrolled in a FERS retirement plan, while those elected before 1984 were covered under the CSRS plan.
CSRS participants had the option of keeping CSRS or moving to the FERS retirement plan, which comprises Social Security, Thrift Savings Plan, and a basic benefit plan. Members enrolled in a FERS plan contribute 1.3% of their salary to the plan and 6.2% in Social Security taxes.
Members of Congress can start receiving a pension once they reach age 62 and at least five years of service, 50 years or older with 20 years of service, or 25 years of service regardless of their age at retirement. The amount of pension earned depends on the member’s total years of service and their high-3 average salary.
Congressmen enrolled in either FERS or CSRS may choose to participate in a Thrift Savings Plan (TSP), which is similar to a 401(k) plan available to private-sector employees. TSP is available to all federal employees, and participants contribute a portion of their salary to the TSP Plan. Members covered by CSRS can contribute up to 5% of their salary, while those enrolled in a FERS plan can contribute up to 10% of their salary.
Members of Congress covered under the CSRS and FERS plan require at least five years of service to receive a pension. Since senators serve a six-year term, it means they would be eligible to collect a pension after completing a full six-year term.
However, members of the House of Representatives are not eligible to collect a pension after serving one term since they are up for re-election every two years. They must have at least five years of service, or three two-year terms, to receive retirement benefits for their Congressional service.
Additionally, eligible senators and members of the House of Representatives do not receive a pension equal to their full salary. By law, the pension paid to these elected leaders should not exceed 80% of their final salary.
A 2019 Congressional report disclosed that there were 617 retired Members of Congress earning a pension based on their congressional service as of October 1, 2018.
318 of the 617 retired Congressmen covered by the CSRS plan earned an average annual pension of $75,528. The other 299 members were covered by FERS and earned an average annual pension of $41,208.
By Indeed Editorial Team
February 22, 2021
The US Congress is doing an important job of representing the American people. This legislative branch shares power with the executive branch and the judiciary of the United States. The House of Representatives, with its congressmen and women, and the Senate, with its senators, are the two divisions of Congress. In this article, we summarize the responsibilities of congressmen and senators, and discuss the salaries and benefits that people receive in these prestigious positions.
Congressional salary varies depending on the position of congressman or senator. Most Senators, Representatives, Delegates, and the Permanent Commissioner from Puerto Rico receive a salary of $174,000 per year.
Higher-level positions in Congress bring in a higher income. For example, the Speaker of the House earns $223,500 a year, while the President pro tempore, House and Senate Majority and Minority Leaders earn $19.$3,400 per year.
Congress is the legislative branch of the federal government responsible for representing the people of the United States. It is the only legislature elected directly by the citizens of the United States.
The main duties of Congress, which includes both Congressmen and Senators, are:
Making laws
Declaration of war
Impich and court of federal officials
Supervision of state money
Approval of presidential appointments
Contracts concluded by the Executive power
Both the House of Representatives and the Senate have similar job responsibilities. One of the key differences is that the House of Representatives is responsible for initiating revenue bills. The Speaker of the House of Representatives is responsible for explaining legislative action to both Washington officials and the public. The Speaker serves as the representative of the majority party in the House of Representatives. The Speaker also directs debate in the House of Representatives and oversees accounting and purchases in the House of Representatives.
The Senate is responsible for ratifying treaties and approving presidential appointments. The president pro tempore of the Senate is responsible for presiding over the Senate if the vice president is absent. They can sign laws and swear in new senators.
Congressmen and Senators receive a wide range of benefits and privileges for their tenure. Many of these perks depend on how long they have been in the office and what plans they have chosen.
Here are some benefits that congressmen and senators, in addition to their annual salary:
annual allowances
Health
Pension
Members of Congress receive annual allowances that cover personal expenses associated with the performance of their work.
This includes the cost of their office, travel, goods and services.
Congressmen and senators buy their insurance through the Affordable Care Act exchange. 72% of their premiums are covered by a federal subsidy. When they retire, they may qualify for lifetime health insurance through the Federal Employee Health Insurance Program.
After five years of service, a member of Congress is entitled to a pension. Their retirement benefits depend on their plan, age, and how long they have served in Congress. A member of Congress can receive his full pension at age 62, or at age 50 with 20 years of service. While it is commonly believed that they can earn the full amount of their salary in retirement, this is not the case. They can earn up to 80% of their last paycheck, although such a high percentage is rare.
If a member of Congress dies in office, the family may receive a payment equivalent to a year's salary.
Congressmen are eligible for free and reserved parking at DC airports. They also have various flight privileges.
Members of Congress must comply with limits on the amount of external income they may receive while in office. Senators and representatives can only earn up to 15% on top of their annual congressional salary. Federal laws do not allow them to receive any income from trust relationships. This rule helps prevent any conflicts of interest in Congress.
Members of Congress can earn income from their personal investments as they are considered "unearned" income by law. It can be money received from rent, interest, or stock dividends. These returns are not part of the 15% rule because the participants in this situation receive income from the assets they already own.
The average American has a lot to learn about the US Congress.
By learning more about what government officials earn, Americans can better understand their government's spending. Here are the answers to these frequently asked questions about congressional salaries:
When was the last time the salaries of members of Congress were raised?
Do members of Congress pay Social Security?
Do members of Congress pay income taxes?
Can Congress vote for a pay rise?
Members of Congress get free housing?
Members of Congress have not seen a pay rise since 2009of the year.
Every member of Congress has contributed to the Social Security system since 1984. They are entitled to the same social security benefits as everyone else. Similarly, members of Congress who were elected after 1984 also pay and are subject to the Federal Employees' Retirement System (FERS).
After five years of full participation, they become full members.
Members of Congress must pay income tax just like any other American. This includes money derived from their government paychecks, private business, and military pay.
Congressional salary increases are calculated based on the Employment Cost Index (ECI). Congress can vote to accept or reject a pay increase based on this calculation.
Contrary to popular belief, members of Congress do not receive free housing or housing reimbursement.
November 14, 2017, 00:08 /TASS/. Members of the US House of Representatives passed on Monday a bill that would limit the amount of pensions for former presidents of the country to $200,000 a year. Voting took place according to a simplified procedure.
Virtually all speakers emphasized that ex-presidents, who earn millions of dollars by lecturing and publishing their memoirs, do not need financial assistance from the state. The C-SPAN TV channel was broadcasting from the Chamber session hall.
As the bill's initiator, Republican Jody Hayes, noted, "there is no need to use taxpayer money to support former presidents now, unlike the situation that took place in 1958, when the corresponding law was passed."
In October, a similar bill was approved by the Senate Homeland Security Committee. He was introduced to his colleagues by Senator Joni Ernst, also a member of the Republican faction. "The country's public debt exceeds $20 trillion, and the measures we propose are another important step designed to stop the uncontrolled spending of state funds," she said at the time.
In fiscal 2017, which ended Sept. 30, five surviving ex-presidents cost the state $2.84 million in fiscal 2017, which ended September 30, according to Hayes aides.
They currently receive pensions of $205,000 a year. The bill also provides for a reduction of up to $500,000 a year in the funds allocated to each of them for office rent and wages for the staff of assistants. In six years, this amount will automatically be cut to $350,000, and in another four years, to $250,000.
Payments to former presidents under this item of expenditure vary widely. So, Jimmy Carter received $230,000 in 2016, $George Bush Sr. - over $600,000, Bill Clinton - more than $700,000, and George W. Bush - $800,000. Obama, who left the White House on January 20, could cost $536,000 in fiscal year 2018, which began on October 1.
It is also proposed to automatically reduce benefits for ex-presidents if their additional income exceeds $400,000 per year. So, Bush Sr. takes up to $ 100 thousand dollars for speeches. Clinton - an average of $ 210 thousand. For six speeches in China, he earned $ 1.2 million, for one lecture in Russia - $ 125 thousand.
The amounts referred to in the bill do not include the cost of lifelong protection of former heads of administration and their wives. Since 1997, a law has been in force limiting the periods of personal security for future presidents after the end of their term of office to 10 years, except when it comes to any specific threats.
The US Secret Service does not disclose how much it costs the treasury to protect the former heads of the White House, justifying this in the interests of national security. Independent experts believe that in aggregate such costs can reach $30 million per year.
In 2016, Congress passed the same bill, but then-incumbent Obama exercised his veto. He justified this by saying that it is impossible to exclude the occurrence of any "unforeseen circumstances" in the future, and in this case, the ex-presidents would have an "unjustified financial burden", forcing, for example, to fire assistants and urgently look for less expensive offices.
If the current bill, for some reason, is not passed by Congress or the current head of the White House, Donald Trump, refuses to sign it, then, according to estimates by the Congressional Research Service, in fiscal year 2018, the treasury costs to support Obama will amount to $ 1.
