In 2014, Federal Pensions (non-military) are projected to cost more than defense spending in the Federal Budget. Members of Congress are eligible for a pension at age: - 62 if they have completed at least five years of service; - 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 the final salary. Before 1984, Senators and Representatives did not participate in the Social Security program. Like all federal government employees at that time, they were covered by a pension plan, called the Civil Service Retirement System (CSRS), that did not require payment of Social Security taxes and did not provide Social Security benefits. In 1983, Congress passed a law (P.L. 98-21) that required all federal employees first hired after 1983 to participate in Social Security. The law also required all members of Congress to participate in Social Security as of January 1, 1984, regardless of when they first entered Congress. Because the CSRS was not designed to coordinate with Social Security, Congress directed the development of a new retirement plan for federal employees, called the Federal Employees Retirement System (FERS), which does coordinate a federal pension with Social Security. senate.gov/reference/common/faq/retirement_for_members.shtml
Posted on: Wed, 09 Oct 2013 03:02:35 +0000
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