Are congressmen worth $107,000 a year in retirement?

[unhappycamper]

http://www.mcclatchydc.com/2013/02/20/183694/are-congressmen-worth-107000-a.html



Former Rep. Norm Dicks (D-WA)

Are congressmen worth $107,000 a year in retirement?
By Rob Hotakainen | McClatchy Newspapers
Posted on Wednesday, February 20, 2013

WASHINGTON — After retiring from a 36-year career in the U.S. House of Representatives last month, Norm Dicks has no doubt that he’s worth every penny of his new pension: It will allow the Washington state Democrat to cash a monthly check from the U.S. government for $7,365.82.

That’s the net pay on his gross annual pension of $107,268, or $8,939 per month.

“I think I did a good job for the people in the state of Washington, you know. I think that this is fair, I really do,” Dicks, 72, said in an interview.

Dicks, who’s now working as a consultant with defense companies, is among a handful of departing members of Congress who are eligible for six-figure pensions in the first year of retirement. If he lives long enough, his pension could exceed his congressional salary of $174,000 in 2012, with members eligible for annual cost-of-living increases.




unhappycamper comment: No.

[Tuesday Afternoon]

1. no.

[reformist2]

2. If they work as "consultants" or peddlers of influence, they shouldn't get a pension.

Also, I'd want them to have put in a good 20 years or so before they qualify for full benes.

Otherwise, I'm not opposed to the general idea of a pension for congresscritters, so long as they really are retired.

[madville]

3. He's under the old retirement system CSRS

Which stopped around 1980 when members of Congress came under FERS with most other federal employees. Now they get 1.7% per year up to year 20 then 1% every year after that served and have to meet minimum time and age requirements to begin actually receiving the money.

Say someone got elected at age 35 today. They served 20 years and retired at age 55. They would get 34% (about $60,000 a year) beginning at age 60.

The guy in the article, under the newer FERS system would get about $87,000 a year immediately because he has over 30 years of service and is likely over the MRA(minimum retirement age).

They older retirement was a better deal for the pension but they also didn't have to pay into social security so they likely won't see a full benefit there depending on their earnings and other quarters worked.