The E-Mail Rumor:

"Perhaps we are asking the wrong questions during election years.

"Our Senators and Congressmen do not pay into Social Security and, of course, do not collect from it. Social Security benefits were not suitable for persons of their rare elevation in society. They felt they should have a special plan for themselves.

"Many years ago they voted in their own benefit plan. In more recent years, no congressperson has felt the need to change it. After all, it is a great plan.

"For all practical purposes their plan works like this:   When they retire, they continue to draw the same pay until they die, except it may increase from time to time for cost of living adjustments.

"For example, former Senator Byrd and Congressman White and their wives may expect to draw $7,800,000.00 ..... yes, (that's Seven Million, Eight Hundred Thousand), with their wives drawing $275,000.00 during the last years of their lives. This is calculated on an average life span for each.

"Their cost for this excellent plan is $00.00. Nada. Zilch. This little perk they voted for themselves is free to them. You and I pick up the tab for this plan.

"The funds for this fine retirement plan come directly from the General Funds--our tax dollars at work! From our own Social Security Plan, which you and I pay (or have paid) into--every! payday until we retire (which amount is matched by our employer)--we can expect to get an average $1,000 per month after retirement. In other words, we would have to get benefits for 68 years and one (l) month to equal Bradley's benefits!

"Social Security could be very good if only one small change were made. And that change would be to jerk the Golden Fleece Retirement Plan from under the Senators and Congressmen. Put them into the Social Security plan with the rest of us and then watch how fast they would fix it. If enough people receive this, maybe a seed of awareness will be planted and maybe good changes will evolve.

"How many people can YOU send this to?"

(This widely circulated email is unsigned.)

The Response

I asked Congressman Gilchrest (R-MD) for a response to this email. His response follows.

You will note from his response there is no truth to the claim that Members of Congress pay "$00.00, Nada, Zilch" into their own retirement.

You will also note that Members of Congress do pay into Social Security at the same rate as everyone else.

And you will note that even those Congressional retirees entitled to the highest retirement benefits are capped at 80% of their pre-retirement salary.

"Dear Mr. Johnson:

"Thank you for contacting me regarding the misleading, incorrect e-mails being circulated about Members' pay, retirement, and their Social Security liability.

"All Members must pay SS and, yes, their retirement is calculated under a formula that gives them a somewhat better return than the average federal employee, but Members also pay more into the system during their service.

"The following is a summary of the history of benefits for Members of Congress:

"Prior to 1984, neither federal civil service workers nor Members of Congress paid taxes to Social Security, nor were they eligible for Social Security benefits. Members of Congress and other federal employees were instead covered by a separate pension plan called the Civil Service Retirement System (CSRS). The 1983 amendements to the Social Security Act (P.L. 98-21) required federal employees first hired after 1983 to participate in Social Security. These amendments 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 workers.The result was the Federl Employees' Retirement System Act of 1986 (P.L. 99-335). Members of Congress first elected in 1984 or later are covered automatically under the Federal Employees' Retirement System (FERS), unless they decline this coverage. Those who already were in Congress when Social Security coverage went into effect could either remain in CSRS or change their coverage to FERS. Members are now covered under one of four different retirement arrangements: Full coverage under both CSRS and Social Security; The 'CSRS Offset' plan, which includes both CSRS and Social Security, but with CSRS contributions and benefits reduced by Social Security contributions and benefits; FERS plus Social Security; or Social Security alone.

"Congressional pensions, like those of other federal employees, are financed through a combination of employee and employer contributons. All members pay Social Security payroll taxes equal to 6.2% of the Social Security taxable wage base ($80,400 in 2002). Members covered by FERS also pay 1.3% of full salary to the Civil Service Retirement and Disability Fund. Members covered by CSRS Offset pay 1.8% of the first $80,400 of salary, and 8.0% of salary above this amount, into the Civil Service Retirement and Disability Fund. (An additional 0.5% of pay is being deducted for FERS and CSRS until January 1, 2003, as required by Public Law 105-33).

"Under both CSRS and FERS, Members of Congress are eligible for a pension at age 62 if they have completed at least 5 years of service. Members are eligible for a pension at age 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 3 years of salary. By law, the starting amount of a Member's retirement annuity may not exceed 80% of his or her final salary. As of October 1, 1999, 414 retired Members of Congress were receiving federal pensions based fully or in part on their congressional service."

Steven H Johnson
January, 2003