When you hear a member of Congress say anything about pensions for state workers, you may want to think about the pension plans offered to those same members of Congress. Their plan is a whole lot better than most private or state government workers receive.
Peter Sepp of the National Taxpayers Union says national lawmakers pay less into their pensions and get a better match from taxpayers than rank-and-file federal workers and most state employees do.
About 8% of the members of Congress have served at least 25 years, and have accrued annual pensions worth at least $50,000. The median annual income for a private pension is just over $8,000.
Lawmakers can also contribute about 9.5% of their pay to a 401(k) … up to $16,500 a year … with part of that matched by taxpayers.
Only 30% of active workers in the U.S. had defined-benefit plans last year like the one available to lawmakers. Of course, to collect that pension money, lawmakers have to be re-elected a few times.
Our thought for today is from Malcolm S. Forbes:
“Retirement kills more people than hard work ever did.”