To: "homestead AT lists.ibiblio.org" <homestead AT lists.ibiblio.org>
Subject: [Homestead] Meanwhile, back at the D.C. Whorehouse . . .
Date: Sat, 08 Jan 2005 14:22:37 -0700
. . . where members are even now talking about our retirement benefits
under the involuntary Social Security system, here is how they have treated
themselves:
(Alexandria, VA) -- Thanks to a generous pension system, life after
Congress can be a lot more lucrative: that's the conclusion of a study
released today by the National Taxpayers Union Foundation (NTUF), a
research group known for its detailed estimates on Congressional retirement
benefits. A total of 38 former Senators and Representatives from the 108th
Congress qualify for taxpayer-funded pensions, with former Senator Tom
Daschle (D-SD) leading the pack at a projected $5 million lifetime payout.
"Even as most Americans face high taxes and other roadblocks to their own
retirement, Members of Congress have paved a smooth path for their golden
years," said NTUF President John Berthoud. "Too bad taxpayers are supplying
most of the gold."
According to the study -- whose results were reported today in an
Associated Press story -- 38 former House and Senate Members from the 108th
Congress amassed sufficient service to qualify for a pension. Among the
highlights:
* Defeated South Dakota Sen. Tom Daschle (D) is eligible for a pension
of $121,233 this year, the highest amount among any studied. Assuming
Daschle lives to the actuarially-projected age of 82.1 years and receives a
4 percent Cost of Living Adjustment (COLA) annually, his total lifetime
pension amount could reach $5.077 million. Also high on the list was former
House Member and Presidential hopeful Dick Gephardt (D-MO), with a 2005
pension of $102,330 and a projected lifetime payout of $3.091 million.
* Three long-serving ex-lawmakers, Sen. John Breaux (D-LA), Sen.
Ernest Hollings (D-SC), and Rep. Phil Crane (R-IL), each qualify for a
$114,102 pension in 2005. Among these three, however, Breaux would
statistically be the likeliest to receive the largest total payment over
the course of his life ($4.074 million).
* Even Members of Congress with shorter tenures can look forward to
significant pension packages. For example, former Rep. Jennifer Dunn
(R-WA), with 12 years of service, could collect as much as $1.011 million
over her lifetime, while Chris John (D-LA), Nick Lampson (D-TX), and Max
Sandlin (D-TX) could eventually receive over $500,000 apiece for serving
eight years in the House.
* Although lawmakers elected in 1984 and thereafter tend to be covered
by a pension plan that is less generous than the one offered to their
senior colleagues, they can make up for much of this difference due to a
taxpayer-funded "match" of salary contributions in a "Thrift Savings Plan"
that functions much like a private-sector 401(k) arrangement. By taking
maximum advantage of this plan and its investment options, a lawmaker
elected in 1990 could retire this year with Thrift Plan assets of more than
$248,000.
Members of Congress are covered under the two major retirement systems that
include most federal employees, but lawmakers enjoy better pension formulas
and eligibility rules than rank-and-file workers (participation is
voluntary). In addition, Congressional pensions are two to three times more
generous than those offered to similarly-paid executives in the private
sector; one reason is a yearly COLA that few businesses offer. Individual
pension amounts for Members of Congress are not a matter of public record.
However, NTUF utilizes data on lawmakers' service, eligibility, and life
expectancies to provide the most accurate calculations of pensions possible.
NTUF is the non-partisan research arm of the 350,000-member National
Taxpayers Union. Note: The full report on pensions for 108th Congress
retirees is available at www.ntu.org.