I would like to know if Members of Congress pay into Social Security, and do they get five thousand dollars a month pensions when they retire? — RF

A: Since 1983 Members of Congress have been required to pay into Social Security. Like all workers, they pay 6.2% up to the first $90,000 of their earnings — the Social Security taxable maximum. Members of Congress, however, have handsome annual salaries of $162,100 and thus do not pay Social Security taxes on the $72,100 balance.

In addition, they also pay into and are covered by one of two pension systems depending upon when they were elected. They participate in the Civil Service Retirement System (CSRS) if elected before 1984 and the Federal Employee Retirment Sytem (FERS) if elected after 1984. Each system has differing benefit formulas combining age and length in service which affects how much a specific Member's pension will pay out. According to The National Association of Retired Federal Employees (NARFE), at the end of FY 2003 there were 413 retired former Members of Congress drawing an average annual annuity of $56,484 under (CSRS) and $39,132 under (FERS).

The National Taxpayers Union says that the pension benefits that Members of Congress receive are two to three times more generous than those offered in the private sector for executives with similar salaries. What they pay in only compensates them for about one fifth of their typical lifetime benefit. Taxpayers cover about 80% of the rest of their retirement benefits.

In addition, a Member of Congress with 20 - 25 years of service could retire with up to 80% of his or her final salary replaced. Under Social Security, less than 30% of wages are replaced for higher earners.

The National Taxpayers Union estimates benefits for recently retired Members of Congress. Retired Member of Congress Billy Tauzin (LA), who stepped down as chairman of the House committee that regulates the pharmaceutical industry and became the new president and CEO of the drug industry's top lobbying group, will receive initial Congressional retirement benefits of $85,726, with lifetime benefits estimated to be $2,896,257.

The media has reported that as CEO of the Phrmaceutical Research and Manufacturers of America, Mr. Tauzin will also receive a pay package worth at least $2 million a year, making him one of the highest paid lobbyists in Washington. Tauzin is opposed to the reimportation prescription drugs, warning that it would expose Americans to the risk of tainted or bogus drugs.

Sources: "Setting the Record Straight on Congressional Retirement," National Association of Retired Federal Employees, February 2005. "When Are Members of Congress Considered Eligible to Receive a Pension," Capital Questions, C-SPAN, 2000. "NTUF Estimates Pension Benefits for Retired Members of Congress," National Taxpayers Union Foundation, April 2005. "Tauzin Switches Sides," William M. Welch, USA Today, December 16, 2004.

June 2005