justbizness45
Analyst
- Reaction score
- 16
The guy is out to lunch on that point but he makes other good ones. Here is the scoop on congressional retirement:
"Prior to 1984, neither federal civil service workers nor Members of Congress
paid taxes to Social Security, nor were they eligible for Social Security benefits.
Members of Congress and other federal employees were instead covered by a
separate pension plan called the Civil Service Retirement System (CSRS). The 1983
amendments to the Social Security Act (P.L. 98-21) required federal employees first
hired after 1983 to participate in Social Security. These amendments also required
all Members of Congress to participate in Social Security as of January 1, 1984,
regardless of when they first entered Congress. Because the CSRS was not designed
to coordinate with Social Security, Congress directed the development of a new
retirement plan for federal workers. The result was the Federal Employees’
Retirement System Act of 1986 (P.L. 99-335).
Members of Congress first elected in 1984 or later are covered automatically
under the Federal Employees’ Retirement System (FERS), unless they decline this
coverage. Those who already were in Congress when Social Security coverage went
into effect could either remain in CSRS or change their coverage to FERS. Members
are now covered under one of four different retirement arrangements:
Members of Congress and other federal employees were instead covered by a
separate pension plan called the Civil Service Retirement System (CSRS). The 1983
amendments to the Social Security Act (P.L. 98-21) required federal employees first
hired after 1983 to participate in Social Security. These amendments also required
all Members of Congress to participate in Social Security as of January 1, 1984,
regardless of when they first entered Congress. Because the CSRS was not designed
to coordinate with Social Security, Congress directed the development of a new
retirement plan for federal workers. The result was the Federal Employees’
Retirement System Act of 1986 (P.L. 99-335).
Members of Congress first elected in 1984 or later are covered automatically
under the Federal Employees’ Retirement System (FERS), unless they decline this
coverage. Those who already were in Congress when Social Security coverage went
into effect could either remain in CSRS or change their coverage to FERS. Members
are now covered under one of four different retirement arrangements:
!
Full coverage under both CSRS and Social Security;
!
The “CSRS Offset” plan, which includes both CSRS and Social
Security, but with CSRS contributions and benefits reduced by
Social Security contributions and benefits;
Security, but with CSRS contributions and benefits reduced by
Social Security contributions and benefits;
!
FERS plus Social Security; or
!
Social Security alone.
Congressional pensions, like those of other federal employees, are financed
through a combination of employee and employer contributions. All Members pay
Social Security payroll taxes equal to 6.2% of the Social Security taxable wage base
($97,500 in 2007). Members covered by FERS also pay 1.3% of full salary to the
Civil Service Retirement and Disability Fund. Members covered by CSRS Offset
pay 1.8% of the first $97,500 of salary, and 8.0% of salary above this amount, into
Congressional pensions, like those of other federal employees, are financed
through a combination of employee and employer contributions. All Members pay
Social Security payroll taxes equal to 6.2% of the Social Security taxable wage base
($97,500 in 2007). Members covered by FERS also pay 1.3% of full salary to the
Civil Service Retirement and Disability Fund. Members covered by CSRS Offset
pay 1.8% of the first $97,500 of salary, and 8.0% of salary above this amount, into
the Civil Service Retirement and Disability Fund."
http://www.senate.gov/reference/resources/pdf/RL30631.pdf
I sold mine last week, made an 8% profit and thought I did well. Woulda, shoulda, coulda. 
