Federal Pensions

[Wilma]

I have been mulling this over in my mind (what I have left of it anyway) and would like an answer.

How many ex-Congressmen and Senators under the age of 65 are drawing a federal pension and how much does it amount to?

Social Security recipients have to wait until the age of 66 to draw the regular social security and in some cases, to the age of 67.

[W. Gray]

According to About.com, as of October 1, 2006:

There were 290 congressman retired under CSRS (Civil Service Retirement Service) at an average retirement of $60,972. [Any Congressman or woman receiving retirement under CSRS was elected prior to January 1984. I doubt if many or any of these folks are under 65.]

There were 123 congressmen retired under FERS (Federal Employees Retirement System), at an average retirement of $35,952. [Any Congressman or woman receiving FERS retirement was elected after January 1, 1984. They have to wait before they reach 66 or 67 to retire under full Social Security or can elect to draw a lesser amount of Social Security at age 62. The discrepancy between the $35,952 annual payment mentioned above and the average annual Social Security payment, whatever that might be, has to do with their 401(k) retirement program.]

The number of Congressmen who have retired as of this date in time has probably increased, but probably not by much. They do have a tendency to want to homestead.

[Wilma]

Does this include the ones who are no longer in office because they lost the election?  Do the members of Congress have to reach a certain age to draw a pension or work a certain number of years to draw a pension?

It seems to me that there is a discrepancy between the Federal workers benefits and Social Security benefits, yet we never hear about Federal benefits being reduced.

Everybody says that we have to cut spending, yet no one is volunteering to cut their own income.
Why don't the people who are responsible for cutting the spending start at the top?

[W. Gray]

Federal workers and Congressmen or women under FERS draw the same Social Security as anyone else would.

However, they also have a contributory 401(k) retirement plan that is intended as a supplement to Social Security. A 401(k) is available to any individual, not just those in the government. It is similar to an IRA.

The government allows any private individual to set up their own 401(k) and the amount contributed is subtracted from their taxable salary. Many times the private individuals employers contribute to their employees plan, as does the government.

The federal worker, as well as anyone else, has to start drawing from the 401(k) by age 70.5, although they can draw as early as 58.5, though, I think. What they are essentially withdrawing is their own money plus any contributions the employer made plus the interest their investment has accrued over the years. And, it is taxable since the money from their salary that they originally contributed was not taxed. Some folks lost a lot of money in their 401(k)s over the last few years because they put their 401(k) in stocks. The only way that can be made up is for stocks to start rising again.

I think the government has recently imposed a two year freeze on federal salaries and that would include Congressmen.