A Look At Retirement Plans For Congress
I've always been curious about benefits our elected representatives receive. FoxNews.com explains congressional pensions.
Members of Congress are eligible for one of two plans, depending on when they were first elected. Members elected before 1983 take part in the CSRS plan which has more generous defined benefits. Members elected after 1983 take part in the FERS plan available to all federal employees. It has a smaller defined benefit but a more generous 401(k).
Members under the old CSRS plan receive a pension equal to 2.5 percent of their highest salary for each year of service. Thus, a member who serves 10 years would receive a pension equal to 25 percent of his salary. Members under the new FERS plan receive pension equal to 1.5 percent of their highest salary for each year of service. Thus a Member serving 10 years would receive a pension equal to 15 percent of his salary.