In 1989, Congress passed legislation that limits its own salary increases.
Many of the nation's founding fathers expected Congress to be filled with wealthy landowners who didn't care about a salary, which perhaps explains why lawmaker pay wasn't stipulated in the U.S. Constitution. It wasn't long before Congress voted that compensation for itself. Today, the majority of U.S. senators and representatives are entitled to the same salary and congressional retirement benefits.
Members of the U.S. Congress have been paid in a variety of ways over the years since the Constitution was signed. In 1789, after heated debate, Congress voted itself a per diem payment of $6. The system of paying members of Congress for each day worked remained in effect until 1815 when an annual salary was introduced. Currently, most senators and representatives make $174,000 per year, the salary that has been in effect since 2009 despite failed legislature to make annual adjustments.
There are a few exceptions to the average pay. The speaker of the house salary is $223,500. The salary of the president pro tempore of the Senate is $193,400, which is also the salary for the majority and minority leaders of the both the House of Representatives and the Senate.
Misinformation and misconceptions about congressional pay are common. Members of Congress are not given extra pay or bonuses for serving on committees. The federal government does not cover their housing and living expenses. Also, they are paid only while they hold elected office. When their term in office ends, they stop receiving a salary.
Another common misconception about members of Congress is that they don't pay into Social Security or receive retirement benefits. Social Security participation has been mandatory for Members of Congress since 1984. Depending on when they were elected to office, they may also participate in either the Federal Employee Retirement System (FERS) or the Civil Service Retirement System (CSRS).
To collect congressional pensions under CSRS and FERS, members of Congress must be at least 62 years old in addition to having completed five years of service. Those who have completed 20 years of service are eligible to retire at age 50. After completing 25 years of service, any retirement age is allowed. Pension payment amounts are determined by a calculation based on the number of service years and the average of the three years of highest salaries.
The rules for paying Social Security taxes and collecting retirement benefits are the same for members of Congress as for all other American workers. The minimum age at which a member of Congress can collect Social Security retirement benefits is 62. Full retirement age under Social Security depends on date of birth. For example, the full retirement age is 66 for those born between 1943 and 1954. Also, at least 40 quarters of eligible employment are required to collect retirement benefits.
Unlike many private employers, the federal government does not provide members of Congress with health insurance. Under the provisions of the Affordable Care Act of 2014, they must purchase health insurance through an approved exchange. Before the Affordable Care Act, health insurance was provided to Congress through the Federal Employees Health Benefit Program (FEHB). Even under FEHB, members of Congress were required to pay a portion of their premiums.
The salary paid to members of Congress is less than the amount paid to many executives in private industry, so some senators and representatives retain their previous sources of income after entering office. There are guidelines about what types of outside work can be done by members of Congress, and earnings are limited (the earned income limit was $28,400 in 2018). However, there are no limits on how much they can earn from stocks, bonds and other investments.
Watson, Catie. "Congressional Salaries & Retirement Benefits." Work - Chron.com, http://work.chron.com/congressional-salaries-retirement-benefits-7896.html. 14 March 2019.
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