In his Pulitzer-Prize winning biography of the 33rd President of the United States Harry Truman, author David McCullough wrote that upon his retirement, Truman left the White House unprotected by the Secret Service and with no support from the federal government besides an army pension of $112.56. He and his wife Bess had put aside part of his $100,000 a year salary in government bonds, but McCullough said it was in all probability a modest amount. Truman was known to have taken out a loan in his last weeks as president. He had numerous opportunities to leverage his position as a former president, but unlike those who followed him, he refused them all and said, "I could never lend myself to any transaction, however respectable, that would commercialize on the prestige and dignity of the office of the presidency." (See also, 5 Poorest U.S. Presidents.)
The financial difficulties Truman faced prompted the passage of the Former President's Act in 1958. The Act authorized the General Services Administration to provide former presidents with a pension, support staff, office space, and travel funds. They also receive a lifetime of Secret Service protection and their children remain protected until they are 16 years old.The pension for former presidents matches the annual pay for senior political officials of the Executive Level 1 ranking. Obama will receive a pension worth $207,800. Widows of ex-presidents are entitled to $20,000 a year.
Last year, the federal government spent a total of $3.25 million on the four former presidents still living. According to a recent report by the Congressional Research Service, George W. Bush alone accounted for $1 million of this. (Nancy Reagan, spouse of President Ronald Reagan who died in March 2016, waived her pension and only availed of franking or mailing privileges.)
Source: Congressional Research Service
Pensions were the second highest category of federal benefits to former presidents in 2015, with the first being "office space.
" A total of $1.18 million was spent on office spaces. George W. Bush received the highest amount at $434,000, closely followed by Bill Clinton's request for $429,000. George H. W. Bush received $207,000 and Jimmy Carter received $112,000. The White House 2017 budget requested an addition of $588,000 to the GSA's allocation for former presidents. President Obama will leave office on January 20, 2017 and become eligible for the benefits and pension.
So do former presidents need all of this ?
According to Politico, George W Bush gave 200 paid speeches from 2009 to 2015 and charged between $100,000 and $175,000 for each. CNN reported that the Clintons raked in more than $150 million for paid speeches from 2001 to early 2015. A recent investigation by Politico showed that Bill Clinton, who has said he became richer post-presidency, used the federal funds to supplement the salaries of Clinton Foundation staffers and provide them with federal government benefits.
The Former President's Act was enacted to "maintain the dignity" of the Office of the President, but since it appears to be supplementing the much larger incomes of some Presidents, there was recently a bipartisan push to curb the load on taxpayers.
In July, however, President Obama vetoed a bill passed in the House and Senate that looked to cap the annual monetary allowance of former presidents at $200,000. The bill also looked to increase the pension of surviving spouses from $20,000 to $100,000. The White House released a statement saying, "This bill as written would immediately terminate salaries and all benefits to staffers carrying out the official duties of former Presidents – leaving no time or mechanism for them to transition to another payroll. As written, this bill would also impair Secret Service’s ability to protect former Presidents by ending GSA’s role in managing operations, equipment and office space."
In 2015, the median pension and annuities received by former employees at private companies was $9,376. Former federal government employees received $22,669. (See also, 6 Surprising Facts About Retirement)
Many companies featured on Money advertise with us.
Opinions are our own, but compensation and
in-depth research determine where and how companies may appear. Learn more about how we make money.
Obama and Biden attend the inauguration ceremonies to swear in Donald Trump as the 45th president of the United States at the U.S. Capitol on Jan. 20, 2017.
Lucy Nicholson—Reuters
Though former President Barack Obama has said he isn't retiring yet, he's already set to receive a healthy governmental pension.
The Former Presidents Act lays out the benefits past presidents receive after they leave office, including a pension and additional funds for travel, office space, staff, and other requirements needed to "maintain the dignity" of the presidency.
Per the statute, Obama's annual presidential pension is $205,700—the same amount as former presidents George W. Bush, Bill Clinton, George H.W. Bush, and Jimmy Carter. The amount is linked to Cabinet Secretary pay, which is set at Executive Level I pay.
While the presidential pensions are all fixed at the same rate, the current president requests funding from Congress for additional expenses related to former presidents.
Those expenses vary widely, mainly because of differences in office space rental costs, per a report from the Congressional Research Service. For example, Jimmy Carter was appropriated $430,000 in fiscal year 2015, while George W. Bush received $1,098,000. Bush received $434,000 for office space that year, while Carter received $112,000.
Upon leaving office, Obama is set to receive less money in FPA funds than any other living president. While he did request an increase of $588,000 in FPA funding for 2017, only $359,000 of it was earmarked for himself—which includes his $205,700 pension, staff salaries, office space, etc.—and the other $229,000 will be distributed between the other four presidents.
Additional appropriations to help the president and his family "transition" to their new life and pay for Secret Service protection are provided through different statutes. For example, Obama requested $9.5 million for the U.S. General Services Administration to carry out the Presidential Transition Act this year (that's for both his transition and Vice President Biden's), including $1 million to brief incoming president Donald Trump's administration.
Former Vice President Joe Biden, on the other hand, receives his retirement income based on his role as President of the Senate. Rules for Senate pensions are much more complicated than presidential pensions, but assuming he has been covered under the Civil Service Retirement System for the past 43 years, Biden's pension could be around $248,670 per year. Former vice presidents do not receive Secret Service protection.
The FPA does not cover health benefits, but former federal employees who were enrolled in the Federal Employees Health Benefits program for five years can receive benefits after their time in office is over. (Carter, who served one term as president and held no other federal role, therefore doesn't qualify.)
The Huffington Post reports that Obama will also receive "$383,535 from the Illinois state pension he earned in eight years as a state lawmaker" once he retires.
Best Pet Insurance Companies of April 2023 2
Drivers May Soon Get More Money Back From Car Insurance Companies 3
Non-Fungible Frenzy: Why NFTs Are Suddenly Everywhere 4
this link is to an external site that may or may not meet accessibility guidelines.
February 3, 2017, 16:00
He is in his 50s, has not been given a promotion at work for the past eight years, but he owns Microsoft Office and has the skills SMM - such conclusions can be drawn from a comic interview that comedian Stephen Colbert conducted with former US President Barack Obama. TASS tells what the ex-head of the White House intends to do in retirement.
During his last press conference, Obama told reporters that in the first days after moving out of the White House, he intends to "recycle in himself this amazing experience" that he "had to go through" during the presidency. “I would like to write, not hear my voice answering questions for a while, I would like to spend time with my daughters. These are my priorities,” the outgoing president shared .
In his numerous speeches, Obama has never said directly what he plans to do professionally. “I know one thing for sure: I need to take Michelle on vacation,” Obama joked.
He kept his promise to the first lady: this week, TMZ published photos of the former presidential couple spending holidays in the company of the British billionaire, owner of the Virgin Group holding Richard Branson in the British Virgin Islands. The atmosphere at Branson's villa is the most casual: Obama walks around in black shorts and a T-shirt, pulling his cap upside down. "He will never return," social media users note with bitter irony.
However, Obama may not be in a hurry to return to the US and look for a job: by law, he is entitled to a large pension, which will provide him with a comfortable life until the end of his days. According to media estimates, the former president's annual pension should be $ 205.7 thousand - the same amount received by the living presidents Jimmy Carter, George W.
Bush, Bill Clinton and George W. Bush. However, taking into account that the state finances the maintenance of the office and salaries of employees, travel, as well as lifelong protection of the Secret Service, in 2017 alone, Obama will cost the budget $ 588 thousand. This amount is relatively small when compared with Obama's predecessors: for example, in 2015, the state spent $1.09 on George W. Bushmillion, for Bill Clinton - $924 thousand.
After moving from the White House, Obama intends to continue living in the US capital. Journalists note that he will become the first president after Thomas Woodrow Wilson to remain in the District of Columbia after the end of the mandate. The reason for this is very prosaic: his youngest daughter, 15-year-old Sasha, is completing her high school education, and her parents do not want to change her school two years before graduation. Obama's eldest daughter, 18-year-old Malia, graduated from high school in 2016 and plans to enter Harvard University this fall.
It is known that Obama will live in a cottage with nine bedrooms, a terrace and a private garden in the elite area of Kalorama in northwest Washington. The area of the mansion is 762 sq. meters, now it is being renovated: a new fence is being built, the power supply system is being updated. The cottage belongs to Joe Lockhart, Bill Clinton's former press secretary. Realtors estimate the cost of the house at about $5 million, its monthly rent will cost Obama $20,000. The former president will work, in fact, in a garage that will be converted into an office. But what exactly Obama intends to do in his garage office after returning from vacation is still unclear.
The 22nd Amendment to the US Constitution prohibits holding the presidency more than twice. Therefore, despite high approval ratings and numerous calls to return to Washington, Barack Obama will no longer be able to become president. Americans from the liberal wing do not lose hope that Michelle Obama will take part in the next presidential race.
But, in her own words, she does not want to return to the White House and believes that she can do a lot for the benefit of US citizens outside the Oval Office.
As a rule, after leaving the White House, American presidents rarely speak publicly on topical political issues. “If Hillary Clinton won the election, I would just hand over the keys to her,” Obama said in the last days of his presidency. But the victory of Republican Donald Trump forced Obama to reconsider his plans. In one of his speeches, he made it clear that he would not be silent if, after the Republican came to power, there were threats to the "values and ideals" of the American people. This is what happened just ten days after the change of power - when Trump signed the so-called anti-Muslim executive order banning citizens of a number of Muslim countries from entering the United States.
Read also
Obama backs protests against Trump's executive orders
In a statement released on January 30 by his spokesman Kevin Lewis, Obama supported the protesters and condemned the policies of the new president.
"The actions of citizens exercising their constitutional right to gather, organize and make themselves heard by government officials is exactly what we expect to see when American values are at stake," Obama said. Commenting on the order signed by Trump, the former president also noted that he "fundamentally disagrees with the discriminatory approach to people on the basis of religion." Trump's name was not mentioned in the statement, but it was obvious to everyone that Obama's blow was aimed specifically at him.
Literally a few days after this statement, the US media started talking about Obama and his team preparing to "challenge" the new president. According to Politico sources, there is currently a discussion in Washington about how exactly the confrontation between the former and current US leaders can occur. Some insiders say that if Obama comes out in open criticism of the Republican too soon, it will reduce the effectiveness of the Democrats' actions against the new administration.
In addition, as representatives of the Obama team have previously stated, the former president does not want to become the leader of the anti-Trump protests.
Fox highlights another problem with Obama's "return": if the former president becomes the face of opposition to Trump, the Democratic Party, which is already in a leadership crisis, will not have a new generation of leaders who can compete in the next parliamentary and presidential elections . This may also be opposed by the "left" wing of the Democratic Party in the person of Senators Bernie Sanders and Elizabeth Warren, who consider Obama too "centrist" a figure. Apparently, the former president is aware of all these problems and sees his goal in reforming the Democratic Party not directly, but through the education and training of new personnel.
Obama plans to create a Presidential Center to train the next generation of political leaders. In an interview with NPR, the former president said he sees himself as a "coach," that is, a coach who will seek out, select, and train new "young talent" for the Democratic Party.
He will probably have to combine this work with other routines that all former presidents face, such as public speaking and lectures, supporting his fellow party members at rallies, and so on.
Read also
Not a "lame duck" but a "silver fox": how Obama's latest executive orders will be remembered
As NBC notes, Obama does not have to return to the public arena to influence the Democratic Party. Many of the former president's henchmen still hold high government positions and adhere to pro-Obama policies. The former president also maintains good relations with budding Democrats: this is, first of all, Tom Perriello, who intends to compete for the post of governor of Virginia; outgoing U.S. Secretary of Labor Tom Perez, who could become Democratic Party chairman; and Senators Cory Booker and Kamala Harris. Each of the above Democrats can take part in the presidential race - 2020.
Another must for every former president is writing a memoir.
Obama is no exception in this regard - the ex-president called working on memories his "top priority". His former speechwriter Cody Keenan will help write the book. Obama could get $20 million or more for his memoirs. At least, this is the assessment given by Esther Newberg, head of the publishing group of the specialized division of the International Creative Management Partners agency, which works with creative individuals from the film, television, music, literature and entertainment industries.
Interest in Obama is higher than in his predecessors - both from his haters-conservatives, and from liberals who passionately admire the ex-president. Therefore, experts are sure that Obama will be offered more for the book than Bill Clinton or George W. Bush. The latter once received $7 million for his memoir Key Decisions, published in 2010 and sold over 2.6 million copies. Clinton also received a record for American ex-presidents $ 15 million for the book "My Life", published in 2001 with a circulation of 2.
2 million copies.
It is also possible that the former first lady will also take up the pen. Newberg believes that Michelle Obama would "easily" get more for the book than Hillary Clinton, who earned $8 million from her autobiography Living History.
Read also
Obama listens to the songs of The Beach Boys, Prince and Jay Z on vacation
Another company that wants to get Obama into their ranks is Cards Against Humanity (known in our country from the board game "500 Evil Cards" ).
The company's management published a corresponding announcement on the job search website and in the issue of the Chicago Tribune newspaper. "Let's be honest, we no longer understand what we are doing. This year we wasted a huge amount of time and effort trying to make Hillary Clinton the new president of the United States, and on Black Friday we dug a huge hole in the ground for fun. It is time to admit that [our company] needs real, serious leadership," the company said.
Barack Obama himself treats his job search with a bit of humor: leaving the White House, he joked that he could become an Uber driver, and also offered his candidacy for the position of coach for the school basketball team. We will find out in the very near future what Obama's first steps will be after leaving the White House.
Artur Gromov
0001
Comments
Donald and Melania Trump - Copyright Alex Brandon/Copyright 2021 The Associated Press.
All rights reserved.
Maria Gorkovskaya
Donald Trump left the White House, but not empty-handed. The former leader of the United States is entitled to a range of "bonuses" under the 1958 federal Former Presidents Act. According to the document, benefits are provided only to those heads of state who have not been removed from office as a result of impeachment or conviction for a criminal offense. Trump, who has been twice removed from power, is literally a stone's throw away from losing the privileges already enjoyed by Bill Clinton, George W. Bush and Barack Obama.
During his first campaign in 2015, Donald Trump announced that, following the example of John F. Kennedy and Herbert Hoover, he would forgo the president's salary of $400,000 a year if he was elected to high office. And so he did. Since 2017, Trump has repeatedly transferred significant amounts to various departments.
One of the last checks was received by the national Ministry of Health to fight the coronavirus pandemic. But to refuse the "golden pension" in 219thousand dollars a year, which all former heads of the American state receive, Trump did not. In turn, the former first lady Melania can also count on 20 thousand dollars a year.
Other popular sources of income for ex-presidents include speaking at conferences and publishing memoirs. So, according to the New York Times, for his speeches at conferences in front of employees of the largest American companies, Barack Obama repeatedly received 400 thousand dollars. And his book "Promised Land" broke the sales record among all publications of former US presidents. The publisher paid Obama a record $65 million advance.
Another privilege of retired American leaders is the opportunity until the end of their days to rely on the protection of their personal security by the US secret services.
If Melania does not divorce and remarry, she will also remain protected. According to some estimates, the budget for the protection of the couple will cost about 1.5 million dollars a year.
According to the law, the children of ex-presidents are also protected, but only until they are 16 years old. But before leaving the White House, Trump ordered that the security services ensure the safety of all his daughters and sons for at least another six months.
The General Services Administration helps retired presidents "change roles" - in particular, open and furnish an office anywhere in the United States, as well as hire assistants, advisers and other staff. In total, Trump will receive $150,000 a year from the federal budget to pay their salaries for the first 30 months. Subsequently, these amounts will be reduced to 96 thousand dollars a year.
In addition, Trump himself and two of his other subordinates are compensated for annual business travel expenses in the amount of up to one million dollars.
The former lady will receive up to 500 thousand dollars for the same needs. At the same time, the ex-president will no longer be able to climb Air Force One.
Trump, like his predecessors as head of state, has at his disposal the presidential townhouse in Washington. In it, he can settle at any time on the occasion of visiting the capital. The government-owned five-story building has two dining rooms, several bedrooms and a special room in the suppressor for intelligence agents.
At the same time, it is not yet clear whether Trump will need a townhouse. After all, in Washington on Pennsylvania Avenue, he owns a luxury hotel.
Finally, Donald and Melania will be able to access medical care in military hospitals. True, not for free, but at a fixed price set by the Office of Management and Budget within the US Presidential Administration. If desired, the couple will be able to join a private health insurance program.
