Congressional pension

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Congressional pension: a retirement plan for members of the U.S. Congress. Members become eligible (vest) after five years of service. They can retire with a pension at age 62 with five years of service, at age 50 with 20 years, or after 25 years of service at any age, with reductions possible depending on which option is chosen. If a member leaves before retirement age, they can defer the pension.

Since January 1987, most members are covered by the Federal Employees Retirement System (FERS), which replaced the older Civil Service Retirement System (CSRS) for many lawmakers. CSRS dates back to the 1940s, was briefly repealed in 1942, reestablished after World War II, and was joined by Social Security coverage for federal workers in 1984. To avoid overlapping benefits with Social Security, Congress created FERS in 1986. New members elected in 1984 or later are automatically enrolled in FERS; older members could stay under CSRS or switch.

pensions are based on years of service and the average of the highest three years of salary. For those under FERS after 2012, the pension accrual is generally 1.0% per year of service, or 1.1% per year if the member has at least 20 years and retires at 62. Under the older CSRS, the rate was 1.7% for the first 20 years and 1.0% for each year after that. There is no fixed maximum pension under FERS. The smallest unreduced FERS pension starts at about 8.5% of the high-3 salary after five years of service, payable at age 62.

Pensions can be reduced for early retirement. All members also pay Social Security payroll taxes (6.2% of earnings). In addition, depending on when they joined FERS, they contribute to the Civil Service Retirement and Disability Fund (CSRDF): pre-2013 members 1.3%, 2013 entrants 3.1%, and post-2013 entrants 4.4%.

Some members have chosen not to participate in the congressional pension, such as Ron Paul, Howard Coble, and Barney Frank. In 2019, Ron DeSantis opted out of his congressional pension. Overall, congressional retirement plans are one part of the federal retirement system, which also involves Social Security and, for many, CSRS or FERS.