The planned resignation of U.S. Rep. Marjorie Taylor Greene has brought renewed attention to the benefits lawmakers receive after leaving office. While often a subject of public debate, the system governing congressional pensions and healthcare is structured and depends heavily on a member's length of service.
Greene, who will have served just over five years upon her formal resignation on January 5, meets the minimum requirement to qualify for a federal pension. However, the amount she is projected to receive highlights how the system rewards longevity, standing in stark contrast to the benefits for long-serving members.
Key Takeaways
- Members of Congress must serve a minimum of five years to be eligible for pension benefits.
- Pensions are calculated based on length of service and the average of the highest three years of salary.
- Lawmakers elected after 1984 are part of the Federal Employees' Retirement System (FERS), similar to other federal workers.
- Retiring members can continue to purchase health insurance through the federal program if they meet specific criteria.
Understanding the Congressional Retirement System
Contrary to some public perceptions, members of Congress do not receive their full salary for life after leaving office. Instead, their retirement benefits are calculated through a formula-based system, much like other federal employees. The specific plan depends on when a lawmaker first entered service.
Most current members, including those elected after 1984, are covered by the Federal Employees' Retirement System (FERS). This is a three-tiered system that includes:
- A Basic Benefit Plan (the pension component)
- Social Security
- The Thrift Savings Plan (TSP), a 401(k)-style defined contribution plan
A small number of long-serving members who began their careers before 1984 may fall under the older Civil Service Retirement System (CSRS), which has a different calculation method. However, for the vast majority of lawmakers today, FERS is the governing framework.
Financing the Pension
Congressional pensions are not simply granted; they are financed through contributions from both the lawmaker and the federal government. Members contribute a portion of their salary to the system throughout their tenure, and they also pay into Social Security, just like most American workers. The benefits they receive from Social Security are calculated under the same rules as for any other beneficiary.
Eligibility and Pension Calculation
To qualify for a pension, a member of Congress must complete at least five years of service. The age at which they can begin drawing benefits varies.
According to the Congressional Research Service, members are eligible for a pension at age 62 with five years of service. The eligibility age drops to 50 for those with 20 years of service, and a pension can be taken at any age after completing 25 years of service.
The Formula for Payouts
The annual pension amount is determined by a specific formula. It considers the member's length of service and their "high-3" average salary—the average of their highest three consecutive years of pay. For most rank-and-file members, this salary is currently $174,000 per year. Leadership positions command higher salaries, which in turn leads to higher pension calculations.
By law, the initial retirement annuity cannot exceed 80% of the member's final salary, creating a cap on potential payouts regardless of how long they served.
A Tale of Two Pensions
The impact of service length is clear when comparing newer and veteran lawmakers. Marjorie Taylor Greene, with just over five years of service, is projected to receive an annual pension of approximately $8,700 once she reaches age 62. In contrast, former Speaker Nancy Pelosi, who first took office in 1987, is expected to receive an annual pension of around $107,860 upon her retirement, reflecting her decades of service and higher salary as Speaker.
Health Insurance After Leaving Congress
Another significant post-service benefit is access to health insurance. Lawmakers are not automatically granted free healthcare for life. Instead, they have the option to continue their health coverage under specific conditions.
While in office, members can purchase health insurance through the marketplace created by the Affordable Care Act for the District of Columbia, known as DC Health Link. The federal government, as their employer, subsidizes a portion of the premium costs, similar to many private-sector group health plans.
"To continue this coverage after leaving office, a former member must have been enrolled in the Federal Employees Health Benefits (FEHB) program for the five years immediately preceding their retirement," a rule outlined by the Congressional Research Service states.
This "five-year rule" is a critical requirement. It ensures that the benefit is available only to those with a consistent period of service and participation in the plan. If they meet this requirement, they can continue to purchase an FEHB plan in retirement, but they are responsible for paying the associated premiums.
The Broader Context of Federal Benefits
The retirement and health benefits available to members of Congress are part of the broader compensation package designed to attract and retain individuals in public service. While the details can be complex, the system is fundamentally aligned with the benefits offered to millions of other federal government employees.
The five-year vesting period for pensions ensures a minimum commitment, while the calculation formula directly ties the final benefit to the duration of a lawmaker's career. This structure means that short-term members receive a modest annuity, while career public servants receive a more substantial retirement income, reflecting their long-term contributions to both the legislative body and the retirement system itself.
