Ending Congressional Pensions

Floor Speech

* Mr. COFFMAN of Colorado. Mr. Speaker, today I am introducing legislation to put an end to the defined-benefit retirement plan currently available to Members of Congress.

* These are extremely difficult economic times. We are in a debt crisis that will require sacrifices on the part of all Americans. I served in both the U.S. Army and the Marine Corps, and I was taught that leaders should never ask others to do anything that they themselves would be unwilling to do. Congress needs to set an example and lead the way for the country. I think this is a good start.

* The defined benefit retirement plan gives Members of Congress an averaged percentage of their annual salary (currently $174,000) for every year they serve in Congress. To be eligible for the retirement plan they must first serve at least five years. They will then receive 1.7% for every year up to 20 that they serve in Congress, and 1% for every year after 20. For example, if a Member of Congress served for 20 years, and they were at least 62, he or she would receive 34% of their salary, or $59,160 per year, based on the current salary. Members of Congress pay 1.3% of their salary into the pension plan and are required to pay into Social Security at the same rate as everyone else. They may contribute to a Thrift Savings Plan that has a match similar to many private sector 401(k) plans.

* My legislation will honor any retirement benefits accrued prior to the passage of this bill, and will keep the Social Security and Thrift Savings Plan in place.

* I believe that Members of Congress should feel the same economic pressures the rest of society does, and I firmly believe that the current effort to reduce spending and constrain the size and scope of government requires that all possible solutions be taken, including cuts to the Congressional budget. I urge the passage of this bill.

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