Traficant Expelled, Keeps Pension

National Taxpayers Union ^ | 7/25/02

[GeneD]

Despite Expulsion from House, Traficant Still Qualifies for Tax-Funded Pension: $37,120 to Start, $1.2 Mil. Over Lifetime

(Alexandria, VA) – Representative Jim Traficant’s saga in Congress may have come to end, but taxpayers could soon be footing the bill for the next chapter – neither his expulsion from the House yesterday nor the possibility of a prison sentence later this month would disqualify him from receiving a Congressional pension that could start at the annual equivalent of $37,120 and total nearly $1.2 million during his lifetime. The estimates were computed by the nonpartisan National Taxpayers Union (NTU), a 335,000-member citizen group that has a long history of accurate Congressional pension calculations.

“Congress and the courts can pass judgment on lawmakers like Jim Traficant, but taxpayers still don’t get the fiscal justice they deserve,” said NTU President John Berthoud. “Despite the major offenses involved in this case, only conviction of a ‘high crime’ like treason deprives Members of Congress of their pensions.”

NTU has identified at least 15 Senators and Representatives convicted of serious crimes over the past two decades who have qualified for taxpayer-funded retirement benefits. For example, former Illinois Congressman Dan Rostenkowski’s annual pension approached $100,000 while serving in prison on mail fraud charges. Bills in the 104th Congress to end tax-subsidized pensions to lawmakers convicted of a felony failed. However, current legislation (H.R. 4672, sponsored by Rep. Jeff Miller) would declare any expelled lawmaker’s service as a Member of Congress ineligible for credit towards retirement benefits.

Congressional pensions are typically 2-3 times more generous than those in the private sector and are even more generous than pensions for most federal workers. Plus, the Congressional benefit is protected from inflation with Cost of Living Adjustments (COLAs), a feature that fewer than 1 in 10 private plans offer. Members such as Traficant pay 1.3 percent of their salaries toward the Congressional retirement benefit, but this covers just a small portion (less than 20 percent) of the average payout.

NTU computes the pension benefit amounts based on public records concerning length of federal service, current age, life expectancy based on standard mortality tables used by the life insurance industry, and COLAs estimated at three percent a year, the same figure used by federal actuaries.

NTU projects that based upon his service in Congress, Jim Traficant could receive a pension beginning at the annual equivalent of $37,120. Assuming he lives to the typical age of 83.0 years, Traficant could receive $1.197 million in cumulative benefits over his lifetime. It is possible, though unlikely, that he has declined coverage in the Congressional retirement system since participation is voluntary. If Traficant were to win re-election and re-enter Congress as an Independent, his benefit checks would stop and he would simply accrue more service toward his future retirement.

Members of Congress may also participate in the federal Thrift Savings Plan (TSP), a defined contribution arrangement that functions much like a 401-(k) plan (lawmakers first elected in 1984 and after receive a “match” from taxpayers on deposits of up to 5 percent of their salaries). If Traficant has invested the maximum allowable amount since he became eligible, and has placed his investments in the plan’s “Common Stock Index Investment Fund” to the extent permitted by law, NTU estimates he may have as much as $218,239 in accumulated TSP assets (down significantly from earlier this year because of market declines).

NTU is a non-profit, nonpartisan citizen organization founded in 1969 to work for lower taxes, less wasteful spending, and accountable government at all levels. Note: Detailed pension calculation charts for many current and former lawmakers, as well as Presidents, are available upon request. Other general information on Congressional and Presidential perks is available online at www.ntu.org.

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[GeneD]

Note: the headline is from the home page.

[watchin]

I think I'm more upset about the fact that we're paying tom, dick, & hillary, - just to name a few.