The following chainletter has been circulating on the Internet regarding the retirement pay of Members of Congress:

"Our Senators and Congressmen don't pay in to Social Security, and, of course, they don't collect from it. The reason is that they have a special retirement plan that they voted for themselves many years ago…they paid nothing in on any kind of retirement, and neither does any other Senator or Congressman. This fine retirement comes right out of the General Fund: our tax money…Imagine for a moment if you can structure a retirement plan so desirable that people have extra deducted so that they may increase their own personal retirement income…"

Most of the statements above are wrong – and I’d like to explain why.

All Members of Congress pay into the Social Security system. And all Members collect from it. Due to various changes throughout the years, there are now four different retirement arrangements for Members of Congress, depending on what year they entered Congress:

1. Full coverage under both Social Security and the older Civil Service Retirement System (CSRS), by paying into both systems.

2. The CSRS Offset plan, where CSRS contributions and benefits are reduced by the amount of Social Security contributions and benefits.

3. The newer Federal Employees Retirement System (FERS) plus Social Security.

4. Only Social Security.

Members entering Congress after 1983 (like myself) may choose only FERS plus Social Security or Social Security only and are not eligible for any of the CSRS plans.

Members of Congress who participate in CSRS or CSRS Offset contribute 8% of their salary to their retirement program (1% more than regular Federal employees). Members who participate in FERS contribute 1.3% of their salary to their retirement program (0.5% more than regular Federal employees).

At last report (FY97), there were 423 retired Members of Congress. Those covered under CSRS received an average annual pension of $50,184, while those under FERS received an average annual pension of $48,228. Like all Federal employees, Members of Congress can participate in the Thrift Savings Plan (TSP); however, Members participating in CSRS or CSRS Offset are limited to a 8% contribution to TSP with no matching employer contribution.

Members of Congress are entitled to pension benefits after five years of service; however, there are age and years of service requirements that dictate whether a Member will get 1) immediate, full pension, 2) immediate, reduced pension, 3) deferred full pension or 4) deferred reduced pension. Social Security taxes and the rules governing eligibility for benefits for Members are the same as for any covered worker.