General Discussion
In reply to the discussion: WTF is she up to? [View all]underpants
(194,106 posts)The primary components of congressional retirement benefits are:
Pension Plan: Members are eligible for a pension (annuity) after at least five years of service. The amount is based on their years of service and the average of their three highest years of salary (high-3 average salary). By law, the starting annual pension cannot exceed 80% of their final salary, which is currently $174,000 for most members.
Eligibility Age: To receive an immediate, full pension, a member must meet specific age and service requirements:
Age 62 with at least five years of service.
Age 50 with at least 20 years of service.
At any age with at least 25 years of service.
Average Payout: As of October 1, 2022 data, FERS retirees received an average annual pension of $45,276, while those under the older, more generous CSRS system averaged $84,504 annually.
Social Security: All members of Congress have been required to participate in Social Security and pay payroll taxes since January 1, 1984. They are eligible for benefits under the same rules as other American workers.
Thrift Savings Plan (TSP): Members can contribute to the TSP, a defined contribution plan similar to a private-sector 401(k), with the employing agency matching contributions up to 5% of their salary.
Healthcare Benefits
During Service: Members of Congress purchase their health insurance through the DC Health Link marketplace, an Affordable Care Act (ACA) exchange, and receive a federal subsidy covering approximately 72% of their premiums.