Foxx cosponsors bill to end congressional pension program09/19/11
“Taxpayers are looking to Congress to cut spending and halt the growth of the national debt,” Foxx said. “Congress needs to lead by example and make sure that spending cuts are felt by those who are serving in Congress. Ending the congressional pension shows taxpayers that Congress is serious about getting our fiscal house in order.”
Currently, the Congressional pension plan gives retired federal lawmakers, who have served at least five years in Congress, an annual payment equal to 1.7 percent of their salary multiplied by the number of years served—for up to 20 years. Retired lawmakers can receive an additional 1 percent for each year served after the 20-year mark. Members of Congress are required to pay 1.3 percent of their annual salary into the pension plan.
While H.R. 2913 prohibits current or future members of Congress from receiving any pension credits for additional years of service, it would honor any retirement benefits already accrued before the bill takes effect. Members of Congress are also required to continue to pay into Social Security and can participate in the Federal Thrift Savings Plan (401k), which is available to all federal employees.
“Winding down congressional pensions will illustrate that Congress is willing to shoulder the same kind of cuts that the rest of the federal government faces,” Foxx said. “This is the kind of leadership Americans expect of their representatives.”
Foxx also voted this year to reduce congressional staffing and office budgets by approximately $80 million, by voting for H.R. 1473 ($55 million in cuts) and H.R. 2551 ($39 million in cuts). H.R. 1473 was signed into law and H.R. 2551 passed the House and is awaiting consideration in the Senate.