How Much Does a Congressman Make in Retirement?
Retirement is a significant milestone in one’s life, and for many, it’s a time to relax and enjoy the fruits of their labor. For members of Congress, retirement is no exception. However, many people are curious about how much a congressman makes in retirement compared to their salary during their tenure. In this article, we will delve into the details of a congressman’s retirement benefits and compare them to their salary.
Retirement Salary and Benefits
Upon retirement, a congressman’s primary source of income is their retirement salary. According to the Federal Employees Retirement System (FERS), a congressman’s retirement salary is calculated based on their highest three years of average salary. For members of Congress, this salary is determined by the annual rate set by Congress for themselves, which is currently $174,000.
The retirement salary is subject to a formula that takes into account the number of years of service and the highest average salary. For example, if a congressman served for 20 years, their retirement salary would be 1.1% of their highest average salary for each year of service. This means that a congressman with 20 years of service would receive approximately 22.2% of their highest average salary as a retirement benefit.
Additional Retirement Benefits
Apart from the retirement salary, Congressmen also enjoy a variety of additional retirement benefits, which include:
1. Health Insurance: Retired Congressmen are eligible for health insurance through the Federal Employees Health Benefits (FEHB) program. This insurance covers both the retiree and their eligible dependents.
2. Life Insurance: Retired Congressmen are eligible for life insurance coverage through the Federal Employees’ Group Life Insurance (FEGLI) program.
3. Thrift Savings Plan (TSP): Congressmen have the opportunity to contribute to the TSP, a tax-deferred retirement savings plan similar to a 401(k). Upon retirement, they can withdraw funds from their TSP account.
Comparison to Salary During Tenure
While the retirement salary is a significant portion of a congressman’s income, it is important to note that it is lower than their salary during their tenure. This is because the retirement salary is based on the highest average salary over three years, whereas their salary during their tenure is the annual rate set by Congress.
Additionally, the retirement benefits provided to Congressmen are comparable to those offered to other federal employees. However, it is worth noting that the retirement benefits for Congressmen have been a subject of debate and criticism, with some arguing that the benefits are overly generous.
Conclusion
In conclusion, a congressman’s retirement benefits, including their retirement salary, health insurance, life insurance, and Thrift Savings Plan, provide a substantial income source for their post-Congress career. While the retirement salary is lower than their salary during their tenure, the additional benefits ensure that they have financial security in their retirement years. However, the generosity of these benefits continues to be a topic of discussion and debate among the public and policymakers.
