An Old Riff from the last election year.
Dug this one out of the past. It was when my column was being carried by the newspaper in Belleville, MI.
Hmmm, not much has changed since I wrote this 2003.
CLIFF'S RIFFS: Cut benefits for lawmakersBy Cliff Yankovich
PUBLISHED: December 25, 2003
As an election year is fast approaching, we need to get our heads out of the sand, ignore the distractions of what the political parties want us to concentrate on and focus on some issues that are strangling taxpayers -- be they Democrats, Republicans, Greenies or whatever.
Are you aware that Congress members draw their pay until they die? The program that pays them is not tied to Social Security -- representatives and senators do not collect from Social Security, neither do they have their paychecks shortened by any Social Security withholding.
No, the boys and girls we elect will draw paychecks until death (with pay going to surviving spouses until they die) thanks to a program instituted many years ago. They don't pay a single cent into their plan. Nothing. Our taxes do.
How dumb are we? The lifetime salaries go to alleged fiscal "conservatives" as well as the more liberal folks. We are paying for their retirement, dear readers, and they didn't even ask us if we wanted to.
NOTE: I have been corrected about the above information by the observant Fritz. I have posted a (hopefully) more factual version of the retirement program in a comment attached.
Things are pretty swell for our elected state officials as well. Can we all still remember that in 2001 our state representatives received a 36-percent raise?
Median income in Michigan is approximately $38,883, but our legislators are guaranteed a minimum of more than twice that, plus an expense allowance starting at 12 grand a year.
It is worth mentioning that the Republican controlled House voted 100-6 against the raise, but that was a useless political gesture because in order to turn down a pay raise both the Senate and House must decline by a two-thirds majority.
Sen. Dan DeGrow (R-Port Huron) demonstrated his fiscal conservatism by simply refusing to let the issue be voted on, thereby guaranteeing him and the rest of the legislators the pork they love.
As a reluctant Republican, I want to say to my fellow Republicans that if you continue to listen to the party line on spending and do not force your elected officials to deal with this issue, then you are no more fiscally responsible than the worst "tax-and-spend liberal" you can name.
To the Democrats out there -- forget the smokescreens put up by the candidates and take them to task on this issue. Our state is millions in the hole and yet the legislators allowed themselves an enormous raise which cost us 8 million in two years. By the way, our legislators are the third-highest paid in the nation behind California and New York. What a load of junk they have piled on us folks; we need to dig out from under it and force state and national legislators into pay concessions now.
As much as the Green Party scares me, their candidates are the only ones who claim to not be interested in sucking the life out of all of us with salary increases and pension plans so sweet they make your teeth rot.
Demand that your state and federal legislators do something about their own compensation plans. E-mail them, write them, call them, and hassle them on the campaign trail -- we can make a difference if we ignore their smoke and light a fire under their behinds.
Hmmm, not much has changed since I wrote this 2003.
CLIFF'S RIFFS: Cut benefits for lawmakersBy Cliff Yankovich
PUBLISHED: December 25, 2003
As an election year is fast approaching, we need to get our heads out of the sand, ignore the distractions of what the political parties want us to concentrate on and focus on some issues that are strangling taxpayers -- be they Democrats, Republicans, Greenies or whatever.
Are you aware that Congress members draw their pay until they die? The program that pays them is not tied to Social Security -- representatives and senators do not collect from Social Security, neither do they have their paychecks shortened by any Social Security withholding.
No, the boys and girls we elect will draw paychecks until death (with pay going to surviving spouses until they die) thanks to a program instituted many years ago. They don't pay a single cent into their plan. Nothing. Our taxes do.
How dumb are we? The lifetime salaries go to alleged fiscal "conservatives" as well as the more liberal folks. We are paying for their retirement, dear readers, and they didn't even ask us if we wanted to.
NOTE: I have been corrected about the above information by the observant Fritz. I have posted a (hopefully) more factual version of the retirement program in a comment attached.
Things are pretty swell for our elected state officials as well. Can we all still remember that in 2001 our state representatives received a 36-percent raise?
Median income in Michigan is approximately $38,883, but our legislators are guaranteed a minimum of more than twice that, plus an expense allowance starting at 12 grand a year.
It is worth mentioning that the Republican controlled House voted 100-6 against the raise, but that was a useless political gesture because in order to turn down a pay raise both the Senate and House must decline by a two-thirds majority.
Sen. Dan DeGrow (R-Port Huron) demonstrated his fiscal conservatism by simply refusing to let the issue be voted on, thereby guaranteeing him and the rest of the legislators the pork they love.
As a reluctant Republican, I want to say to my fellow Republicans that if you continue to listen to the party line on spending and do not force your elected officials to deal with this issue, then you are no more fiscally responsible than the worst "tax-and-spend liberal" you can name.
To the Democrats out there -- forget the smokescreens put up by the candidates and take them to task on this issue. Our state is millions in the hole and yet the legislators allowed themselves an enormous raise which cost us 8 million in two years. By the way, our legislators are the third-highest paid in the nation behind California and New York. What a load of junk they have piled on us folks; we need to dig out from under it and force state and national legislators into pay concessions now.
As much as the Green Party scares me, their candidates are the only ones who claim to not be interested in sucking the life out of all of us with salary increases and pension plans so sweet they make your teeth rot.
Demand that your state and federal legislators do something about their own compensation plans. E-mail them, write them, call them, and hassle them on the campaign trail -- we can make a difference if we ignore their smoke and light a fire under their behinds.
Comments
Fritz
No, the boys and girls we elect will draw paychecks until death (with pay going to surviving spouses until they die) thanks to a program instituted many years ago. They don't pay a single cent into their plan. Nothing. Our taxes do." This is not true. Sorry, I should have specified. There was a lot of good stuff in there.
Members of Congress began paying into Social Security in 1983, as part of a government-wide pension overhaul. This is a requirement, and Members may not opt out of it. They then have the option of participating in one of two pension plans, depending upon when they were elected (most of them do). If elected before 1984, they participate in the Civil Service Retirement System; if elected 1984 and after, they participate in the Federal Employee Retirement System. These two plans are also offered to rank and file federal employees, EXCEPT that the Congressional plan's benefit is calculated on a more generous formula than that offered to most other government workers. The "accrual rate" is much higher, and lawmakers tend to be able to retire earlier with benefits than other federal workers (as early as age 50).
Also, Members of Congress may participate in the government-wide Thrift Savings Plan, which works like a federally-managed 401 (k) salary reduction plan. FERS participants are entitled to a government match of up to five percent of salary; CSRS participants may set aside part of their own salary, but they do not receive the match.
In both cases, Members of Congress do contribute to their pension plans, although the rates are somewhat complicated by the fact that since 1983, lawmakers have been required to pay into Social Security. Members elected before 1984 must pay 8 percent of their salaries into the pension plan, but may elect a "Social Security offset" provision that allows them to split the pay-in (6.2 percent for Social Security and 1.8 percent for the pension.) The result is that upon retirement, Members receive a pension that is reduced by the amount of Social Security that is attributable to Congressional service. Members elected in 1984 and thereafter pay 1.3 percent towards the pension and 6.2 percent to Social Security. This only compensates for about 1/5 of the typical lifetime benefit. We cover the rest as taxpayers.
With service of 20-25 years, a Member of Congress could retire with up to 80 percent of his or her final salary replaced. Of course, the only cap on how fast their benefits rise is the rate of increase in CPI. For this reason, Congressional pensions can and frequently do exceed a Member's final salary, but only after a few years in retirement, when COLAs begin to kick in. For example, a Member of Congress who could collect $5 million or more, if he or she retires in his/her fifties, lives until his/her eighties, and elects to leave a part of the pension benefit to a spouse, who then live 10 or more years longer. This could include George Mitchell, especially after his post-Congressional government service. With Cost of Living Adjustments, total payments over a lifetime can reach these levels (though the more typical payout is likely to be between $1 million and $2 million).
In the final analysis, Congressional pension benefits are 2-3 times more generous than what a similarly-salaried executive could expect to receive upon retiring from the private sector.
I just found this on the web. I stand corrected. Interesting that the newspaper published my column without checking my facts. I am embarrassed.