Retirement Benefits for Members of Congress

July 31, 2000 – July 25, 2023 RL30631

Retirement Benefits for Members of Congress
Updated July 25, 2023
Congressional Research Service
https://crsreports.congress.gov
RL30631

Retirement Benefits for Members of Congress

Summary
Prior to 1984, neither federal civil service employees nor Members of Congress paid Social
Security taxes, 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 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). All Senators and those Representatives serving as
Members prior to September 30, 2003, may decline this coverage. Representatives entering office
on or after September 30, 2003, cannot elect to be excluded from such coverage. Members who
were already 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:
• 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;
• FERS, which includes the FERS basic retirement annuity, Social Security, and
Thrift Savings Plan (TSP); 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 ($160,200 in 2023). Members first
covered by FERS prior to 2013 also pay 1.3% of full salary to the Civil Service Retirement and
Disability Fund (CSRDF). Members of Congress first covered by FERS in 2013 contribute 3.1%
of pay to the CSRDF. Members of Congress first covered by FERS after 2013 contribute 4.4% of
pay to the CSRDF. Members covered by CSRS Offset pay 1.8% of the first $160,200 of salary in
2023, and 8.0% of salary above this amount, into the CSRDF.
Under both CSRS and FERS, Members of Congress are eligible for a pension at the age of 62 if
they have completed at least 5 years of service. Members are eligible for a pension at age 50 if
they have completed 20 years of service, or at any age after completing 25 years of service. The
amount of the pension depends on length of service (as measured in months) and the average of
the highest three years of salary. By law, the starting amount of a Member’s retirement annuity
may not exceed 80% of his or her final salary.
There were 619 retired Members of Congress receiving federal pensions based fully or in part on
their congressional service as of October 1, 2022. Of this number, 261 had retired under CSRS
and were receiving an average annual pension of $84,504. A total of 358 Members had retired
with service under FERS and were receiving an average annual pension of $45,276 in 2023.
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Background on Congressional Pensions
The Civil Service Retirement Act of 1920 (P.L. 66-215) established a pension system for federal
employees in the executive branch of government. Coverage under the Civil Service Retirement
System (CSRS) was extended to Congress in January 1942 by P.L. 77-411. That law was repealed
just two months later in response to adverse public opinion. In 1946, P.L. 79-601 again extended
CSRS coverage to Congress, at the option of Members, with higher contributions and greater
benefits than those applicable to regular federal employees. In its report on that legislation, the
Special Committee on the Organization of Congress stated that a retirement plan for Congress
would contribute to independence of thought and action, [be] an inducement for retirement
for those of retiring age or with other infirmities, [and] bring into the legislative service a
larger number of younger Members with fresh energy and new viewpoints concerning the
economic, social, and political problems of the Nation.1
The Social Security Amendments of 1983 (P.L. 98-21) required all federal employees hired in
1984 or later to participate in Social Security.2 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. Requiring federal workers to participate in both CSRS and Social Security
would have duplicated some benefits and would have resulted in employee payroll deductions for
the two programs that would exceed 13% of pay. After mandating Social Security coverage of
new federal employees beginning in 1984, Congress directed the development of a new
retirement plan for federal workers with Social Security coverage as its foundation. The result of
this effort was the Federal Employees’ Retirement System Act of 1986 (P.L. 99-335).
The Federal Employees’ Retirement System (FERS) went into effect in 1987, and employees first
hired in 1984 or later were automatically enrolled in this plan. Employees who had been in the
federal government before 1984 were given the option to remain in CSRS—without Social
Security coverage—or to switch to FERS. The options for Members of Congress differed from
those available to other federal employees because the 1983 amendments required all Members
of Congress to participate in Social Security. Members first elected in 1984 or later were given
the option to enroll in FERS as well as being covered by Social Security, or to be covered only by
Social Security.3 Members who had been in Congress before 1984 could elect to stay in CSRS in
addition to being covered by Social Security; to elect coverage under an offset plan that integrates
CSRS and Social Security; to elect coverage under FERS in addition to being covered by Social
Security; or to be covered only by Social Security.4
Because of the uncertain tenure of congressional service, FERS was originally designed, as CSRS
had been, to provide a larger benefit for each year of service to Members of Congress and
congressional staff than to most other federal employees. Prior to the Middle Class Tax Relief and
Job Creation Act of 2012 (P.L. 112-96), all Members of Congress also became eligible for

1 U.S. Congress, Senate Special Committee on the Organization of Congress, Legislative Reorganization Act of 1946,
report to accompany S. 2177, 79th Cong., 2nd sess., May 31, 1946, S.Rept. 79-1400 (Washington: GPO, 1946), p. 9.
2 The Social Security Act became law in 1935 and at that time covered only workers in the private sector.
3 Until enactment of the Legislative Branch Appropriations Act, 2004 (P.L. 108-83), all Members could decline FERS
coverage and choose to be covered by Social Security only. Effective with passage of P.L. 108-83, however,
Representatives entering office on or after September 30, 2003, may not elect to be excluded from such coverage;
although all Senators and those Representatives serving as Members prior to September 30, 2003, continue to be able to
decline this coverage. For more details, see section on “Mandatory Coverage Under FERS.”
4 Under the Offset Plan, payroll deductions go partly to Social Security and partly to the Civil Service Retirement and
Disability Fund (CSRDF). In retirement, the individual’s CSRS pension is reduced (offset) by the amount of his or her
Social Security benefit.
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retirement annuities at an earlier age and with fewer years of service than most other federal
employees. However, all Members of Congress and congressional staff also paid a higher
percentage of salary for their retirement benefits than most other federal employees before P.L.
112-96 was enacted.
P.L. 112-96 made two significant changes to the retirement benefits of Members of Congress who
are first covered by FERS after December 31, 2012.5 First, P.L. 112-96 decreased the FERS
benefit accrual rate (used in the FERS pension calculation) for Members first covered by FERS
(or reelected with less than five years of FERS service) after December 31, 2012, to be the same
as regular FERS employees.6 Therefore, the larger benefit per year of service is no longer
available to Members (or congressional employees) first covered by FERS after December 31,
2012.
Second, P.L. 112-96 also increased the FERS employee contributions by 1.8 percentage points for
Members of Congress first covered by FERS (or reelected with less than five years of FERS
service) after December 31, 2012. Therefore, Members newly covered by FERS in 2013 are
required to contribute 3.1% of pay to FERS. Subsequent to P.L. 112-96, the Bipartisan Budget
Act of 2013 (P.L. 113-67) further increased the FERS employee contributions by an additional 1.3
percentage points for all individuals, including Members of Congress, first covered by FERS (or
rehired/reelected with less than five years of FERS service) after December 31, 2013. Therefore,
under P.L. 113-67, Members of Congress and other federal employees first covered by FERS
beginning in 2014 are required to contribute 4.4% of pay to FERS.
Thus, for individuals first covered by FERS after December 31, 2012, there is no longer a larger
employee contribution under FERS required for Members and congressional employees in
comparison with regular FERS employees; all of these groups contribute 3.1% of pay toward
their FERS annuity if first covered in 2013 or 4.4% of pay if first covered by FERS after 2013.
Members of Congress first elected after December 31, 2012, however, remain eligible for
retirement annuities under FERS at earlier ages and with fewer years of service than most other
federal employees.
There were 619 retired Members of Congress receiving federal pensions based fully or in part on
their congressional service as of October 1, 2022.7 Of this number, 261 had retired under CSRS
and 358 had retired under FERS. Members who had retired under CSRS had completed, on
average, 24.7 years of civilian federal service.8 Their average annual CSRS annuity in 2022 was
$84,504. Those who had retired under FERS had completed, on average, 16.2 years of civilian
federal service.9 Their average retirement annuity in 2022 (not including Social Security) was
$45,276. The average age of retired Members of Congress receiving retirement annuities in 2022
was 78 for those who had retired under CSRS and 75 for those who had retired under FERS.

5 P.L. 112-96 also made changes to FERS employee contributions for regular FERS employees. For information on
these changes, see CRS Report 98-810, Federal Employees’ Retirement System: Benefits and Financing.
6 See section on “Pension Benefits Under FERS” below for details.
7 U.S. Office of Personnel Management, Statistical Abstracts Fiscal Year 2022: Federal Employee Benefits Programs,
April 2019. (As of the publication date of this report, these are the mostly recently available program data.)
8 The mean number of years of military service for retired Members of Congress receiving CSRS annuities in 2022 was
1.9.
9 The mean military service for retired Members of Congress receiving FERS annuities in 2022 was 0.5 years.
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Retirement Benefits for Members of Congress

Retirement Plans Available to Members of Congress
Members First Elected Before 1984
Members of Congress who were first elected before 1984 may be covered under one of four
retirement plans:
• Dual Coverage. This is full coverage by both CSRS10 and Social Security.
• CSRS Offset. This is coverage by CSRS and Social Security, but with CSRS
contributions and benefits reduced (offset) by the amount of Social Security
contributions and benefits.
• FERS. This is composed of the FERS basic annuity, Social Security, and the
Thrift Savings Plan (TSP).
• Social Security Only. This occurs if the Member declines other coverage.
Members and other federal employees who were covered under CSRS had the opportunity to
switch to FERS during two six-month open seasons in 1987 and 1998. In 1987, less than 5% of
eligible federal employees switched from CSRS to FERS, and in 1998 less than 1% of eligible
employees switched.
Members First Elected Since 1984
Members of Congress who were first elected in 1984 or later are covered automatically by the
Federal Employees’ Retirement System. Prior to the Legislative Branch Appropriations Act, 2004
(P.L. 108-83), all Members could decline this coverage. Effective with passage of P.L. 108-83,
however, Representatives entering office on or after September 30, 2003, may not elect to be
excluded from such coverage. All Senators, regardless of date, and those Representatives serving
as Members prior to September 30, 2003, continue to be able to decline this coverage.
FERS is composed of three elements:
1. Social Security;
2. the FERS basic annuity,11 a monthly pension based on years of service and the
average of the three highest consecutive years of basic pay; and
3. the Thrift Savings Plan,12 into which participants can deposit up to a maximum of
$22,500 in 2023 (participants who are at least age 50 in 2023 can make an
additional catch-up contribution of up to $7,500). Their employing agency
matches employee contributions up to 5% of pay.
Members who enter Congress with at least five years of previous federal employment covered by
CSRS can choose to participate in the CSRS Offset Plan rather than FERS.

10 For additional details on CSRS, see CRS Report 98-810, Federal Employees’ Retirement System: Benefits and
Financing.
11 For additional details on FERS, see CRS Report 98-810, Federal Employees’ Retirement System: Benefits and
Financing.
12 For additional details on the TSP, see CRS Report RL30387, Federal Employees’ Retirement System: The Role of the
Thrift Savings Plan.
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Age and Length-of-Service Requirements
Members become vested in (legally entitled to) a pension benefit under CSRS or FERS after five
years of service. The age and service requirements for retirement eligibility are determined by the
plan under which a Member is covered at the time of retirement, regardless of whether he or she
has previous service covered under a different plan.13 Depending on a Member’s age and years of
service, a pension can be taken immediately upon separating from service or only on a deferred
basis. Likewise, the Member’s age and years of service, as well as the starting date of the annuity,
will determine whether he or she is eligible for a full pension or a reduced pension.
Retirement Under CSRS
Four retirement scenarios are possible for Members covered by CSRS or the CSRS Offset Plan.
Retirement with an immediate, full pension is available to Members aged 60 or older with
10 years of service in Congress, or aged 62 with 5 years of civilian federal service, including
service in Congress.
Retirement with an immediate, reduced pension is available to Members aged 55 to 59 with
at least 30 years of service. It is also allowed if the Member separates for a reason other than
resignation or expulsion after having completed 25 years of service, or after reaching the age
of 50 and with 20 years of service, or after having served in nine Congresses.14
Retirement with a deferred, full pension is available if the Member leaves Congress before
reaching the minimum age required to receive an immediate, unreduced pension and delays
receipt until reaching the age at which full benefits are paid. A full pension can be taken at the
age of 62 if the Member had 5-9 years of federal service, or at the age of 60 if the Member
had at least 10 years of service in Congress. At the time of separation, the Member must leave
all contributions in the plan to be eligible for the deferred pension.
Retirement with a deferred, reduced pension is available to a Member at the age of 50 if he
or she retired before that age and had at least 20 years of federal service, including at least 10
years as a Member of Congress.
Retirement Under FERS
There are four possible retirement scenarios for Members who are covered by FERS.
Retirement with an immediate, full pension is available to Members aged 62 or older with at
least 5 years of federal service; aged 50 or older with at least 20 years of service; and at any
age to Members with at least 25 years of service.

13 Active-duty military service can be counted toward retirement eligibility, but not toward five-year vesting. In order
for military service to count toward the amount of one’s retirement annuity, the individual must deposit in the Civil
Service Retirement and Disability Fund the amount that would have been withheld if retirement deductions had been
made during the person’s years of military service, plus accrued interest on this amount. For more information, see
CRS Report R40428, Credit for Military Service Under Civilian Federal Employee Retirement Systems.
14 The pension is reduced by one-twelfth of 1% for each month not in excess of 60 months, and one-sixth of 1% for
each month in excess of 60 months that the Member is under age 60 at the date of separation. Reasons for separation
“other than resignation or expulsion” include both choosing not to seek reelection and not winning reelection.
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Retirement with an immediate, reduced pension is available at the age of 55 to Members
born before 1948 with at least 10 years of service. The minimum age will increase to 56 for
Members born from 1953 through 1964 and to 57 for those born in 1970 or later.
Retirement with a deferred, full pension is available at the age of 62 to former Members of
Congress with at least 5 years of federal service.
Retirement with a deferred, reduced pension is available at the minimum retirement age of
55 to 57 (depending on year of birth) to a former Member who has completed at least 10
years of federal service. The pension annuity will be permanently reduced if it begins before
the age of 62.15
Coordination of FERS Benefits with Social Security
The FERS basic annuity was designed to supplement Social Security retirement benefits. FERS
retirees under age 62 who retire with an unreduced pension are eligible for a temporary
supplement to their FERS pension to fill in until Social Security eligibility is reached at the age of
62. The supplement is an amount estimated to equal the Social Security benefits accrued from
federal service, and is paid from the time of retirement until the age of 62. The FERS supplement
ends at the age of 62 regardless of whether the individual applies for Social Security at that time.
Like Social Security benefits paid before the full retirement age (66 years for individuals born
between 1943 and 1954), the supplement is reduced if the retiree has earnings above a specified
annual limit. This FERS supplement is payable to Members who retire at the ages of 55 to 57
(depending on year of birth) or older with at least 20 years of service. A former Member with at
least 20 years of FERS service also may begin to draw the supplement upon reaching the age of
55 to 57.16
Social Security Retirement Benefits17
Since January 1, 1984, all Members of Congress have been required to pay Social Security
payroll taxes. The laws governing payment of Social Security taxes and eligibility for Social
Security benefits apply to Members of Congress in the same way they apply to any other Social
Security covered worker. Forty quarters of covered employment are required to be eligible for
retired worker benefits.18 The full retirement age (FRA) for Social Security has been gradually
increasing from 65 to 67 over a 22-year period (for those reaching age 62 between 2000 and
2022). The FRA is 67 for workers born in 1960 or later (i.e., those attaining age 62 in 2022 or
later and age 67 in 2027 or later). Workers can claim reduced retirement benefits as early as age
62 (the early eligibility age). For workers with an FRA of 66, for example, claiming benefits at
age 62 results in a 25% reduction in monthly benefits. For workers with an FRA of 67, claiming
benefits at age 62 results in a 30% benefit reduction.
For information on the FRA under Social Security and the actuarial reduction for claiming before
the FRA, see CRS Report R44670, The Social Security Retirement Age.

15 The pension is reduced by 5% for each year the Member is under the age of 62 when the pension begins (unless he or
she has completed 20 or more years of service).
16 Members, former Members, and congressional staff can receive an unreduced annuity (and the FERS supplement)
with at least 20 years of service, provided they have reached the minimum retirement age of 55-57. Regular federal
employees must complete at least 30 years of service and reach the minimum retirement age of 55-57 before they are
eligible to receive an unreduced retirement annuity and the FERS supplement.
17 For an overview of Social Security benefits, see CRS Report R42035, Social Security Primer.
18 Fewer quarters of covered employment are required for individuals born before 1929.
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Social Security Earnings Limit19
Social Security benefits are reduced for beneficiaries under the FRA who have earnings from paid
employment that exceed thresholds that are defined in statute.20 In 2023, Social Security
beneficiaries under the FRA are subject to a reduction in benefits if their annual earnings exceed
$21,240 ($1,770 per month) for any year prior to the year in which they attain FRA. These
beneficiaries lose $1 in benefits for every $2 in earnings above the threshold.
For any months in the same year that Social Security beneficiaries attain FRA, the reduction in
benefits is lower and the annual exempt earnings amount is greater than described above. That is,
for any months in the year that a beneficiary meets the FRA for Social Security, the annual
earnings limit in 2023 is $56,520 ($4,710 per month). Individuals lose $1 in benefits for every $3
in earnings above the threshold for any of these months.
The earnings thresholds described above are adjusted annually for average wage growth in the
U.S. economy. Retirees who have passed the FRA are able to earn any amount without a
reduction based on those earnings.
The Thrift Savings Plan: An Integral Component of FERS
The TSP is a defined contribution retirement plan similar to those authorized under Section
401(k) of the tax code for employers in the private sector. For all federal employees enrolled in
FERS, their employing agency contributes an amount equal to 1% of their base pay to the TSP,
whether or not the employee chooses to contribute anything to the plan. FERS employee
contributions of up to 5% of pay are matched by the employing agency. Employees covered by
CSRS can participate in the TSP, but they receive no employer matching contributions. In 2023,
employees enrolled in TSP can make voluntary contributions of up to $22,500. Employees aged
50 or older can contribute an additional $7,500 in 2023 (for a total contribution limit of $30,000).
TSP employee contributions may be made on a pretax basis, in which case neither the
contributions nor investment earnings that accrue to the plan are taxed until the money is
withdrawn. Alternatively, P.L. 111-31 authorized a qualified Roth contribution option to the TSP.
Under a Roth contribution option, employee salary deferrals into a retirement plan are made with
after-tax income. Qualified distributions from the Roth TSP plan option—generally, distributions
taken five or more years after the participant’s first Roth contribution and after he or she has
reached the age of 59½—are tax-free.
Required Contributions to Retirement Programs21
CSRS
Regular federal employees covered by CSRS contribute 7.0% of pay to the Civil Service
Retirement System. Their employing agencies contribute a further 7.0% of payroll to the CSRS

19 For more details on this Social Security earnings limit, see CRS Report R41242, Social Security Retirement Earnings
Test: How Earnings Affect Benefits.
20 Although this reduction is applied in the manner described here, beneficiaries who are affected by this retirement
earnings test have their monthly Social Security benefit recomputed and increased when they reach the Social Security
FRA. Thus, these Social Security beneficiaries recover benefits lost as a result of the retirement earnings test.
21 Individuals, including Members of Congress, who leave federal service may request a refund of their CSRS or FERS
employee retirement contributions. If a refund is made, however, this service is not creditable under the retirement plan
unless the amount of this refund is subsequently redeposited with applicable interest.
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on behalf of these workers. Members of Congress who are covered by CSRS are required to
contribute 8.0% of salary to the plan, and the U.S. Congress makes an employer contribution of
8.0% of payroll on their behalf.
CSRS Offset
Members of Congress covered by the CSRS Offset Plan contribute 1.8% of pay up to the Social
Security taxable wage base ($160,200 in 2023), and 8.0% of pay above this amount, to the Civil
Service Retirement System. They also contribute 6.2% of pay up to the Social Security taxable
wage base to the Social Security trust fund. The U.S. Congress also makes the same amount of
Social Security and CSRS employer contributions on the behalf of Members of Congress covered
by the CSRS offset.
FERS: Covered Prior to December 31, 2012
Currently, regular federal employees who were covered by FERS prior to December 31, 2012,
contribute 0.8% of pay to FERS and their employing agencies contribute an amount equal to
16.0% of pay.22 Currently, Members of Congress and congressional staff who were covered by
FERS prior to December 31, 2012, pay 1.3% of salary for FERS coverage, and Congress pays
22.2% of pay for Members of Congress and 23.9% of pay for congressional employees who are
enrolled in FERS. Members and employees enrolled in FERS also contribute 6.2% of pay up to
the Social Security taxable wage base to the Social Security trust fund. Their employing agencies
also contribute an additional 6.2% on the same wage base to the Social Security trust fund.
FERS: First Covered January 1, 2013, Through December 31, 2013
Federal employees hired (or rehired with less than five years of FERS service) after December
31, 2012, but before January 1, 2014, are subject to increased contributions in accordance with
P.L. 112-96 (the Middle Class Tax Relief and Job Creation Act of 2012). Currently, regular FERS
employees hired in calendar year 2013 contribute 3.1% of pay to their FERS annuity and their
employing agencies currently contribute 14.2% of pay. Members of Congress first elected in 2013
and congressional employees first hired in 2013 also contribute 3.1% of pay. Currently, Congress
contributes 14.2% of payroll for these Members and 16.3% for these congressional employees
first elected or hired in 2013 who are enrolled in FERS. Members and employees enrolled in
FERS also contribute 6.2% of pay up to the Social Security taxable wage base to the Social
Security trust fund. Their employing agencies contribute an additional 6.2% on the same wage
base to the Social Security trust fund.
FERS: First Covered After December 31, 2013
Under P.L. 113-67, the Bipartisan Budget Act of 2013, federal employees hired (or rehired with
less than five years of FERS service) after December 31, 2013, are subject to further increased
FERS contributions. Regular FERS employees first hired after 2013 contribute 4.4% of pay to

22 Office of Personnel Management, “Federal Employees’ Retirement System: Normal Cost Percentages,” 84 Federal
Register 22915-22916, May 20, 2019. The employer contribution to FERS for each category of federal worker (regular
federal workers, congressional employees, and Members of Congress, for example) may be adjusted based on estimates
of the actuarial cost of the program made by the U.S. Office of Personnel Management (OPM). On April 14, 2023,
OPM published a notice of revised FERS costs to be effective at the beginning of the first pay period on or after
October 1, 2023; this notice would increase agency contributions for all categories of FERS employees (for details, see
OPM, “Federal Employees’ Retirement System: Normal Cost Percentages,” 88 Federal Register 23108-23109, April
14, 2023).
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their FERS annuity. Members of Congress first covered by FERS after 2013 and congressional
employees first hired after 2013 also contribute 4.4% of pay. Currently, employing agencies
contribute 13.1% of pay for regular FERS employees and Members of Congress, and 15.2% of
pay for congressional employees. Members and employees enrolled in FERS also contribute
6.2% of pay up to the Social Security taxable wage base to the Social Security trust fund. Their
employing agencies also contribute an additional 6.2% on the same wage base to the Social
Security trust fund.
Temporary Increase in Employee Contributions to CSRS and FERS
Under the terms of the Balanced Budget Act of 1997 (P.L. 105-33), employee contributions under
CSRS and FERS rose by 0.25 percentage points in January 1999 and by a further 0.15 percentage
points on January 1, 2000. Employee contribution rates were scheduled to increase by another
0.10 percentage points on January 1, 2001. Employee contributions were then to revert to the
1998 levels after December 31, 2002. Pension benefits accrued by federal workers would not
have increased as a result of the temporarily higher employee contributions to CSRS and FERS
mandated by the Balanced Budget Act. The higher contribution rates mandated by the Balanced
Budget Act for 2001 were repealed for all federal employees except Members of Congress by P.L.
106-346, the FY2001 Department of Transportation and Related Agencies Appropriations Act.
Contribution rates for Members reverted to 8.0% under CSRS and 1.3% under FERS on January
1, 2003.
Social Security Payroll Taxes
All Members of Congress pay Social Security payroll taxes, regardless of their other retirement
plan coverage. The Social Security tax rate of 6.2% applies to gross wages up to $160,200 in
2023, which is the Social Security taxable wage base. The Social Security taxable wage base is
usually adjusted each year for wage growth in the economy.23 Members of Congress, like all other
workers covered by Social Security, pay Medicare Hospital Insurance taxes on all earnings at a
rate of 1.45% of pay.
Total Payroll Deductions
Total payroll deductions for federal retirement programs depend on the combination of programs
by which a Member is covered. The required payments are exclusive of any voluntary
investments in the TSP. The following are the current required contributions.
Dual Coverage
Members with full CSRS coverage plus Social Security contribute 14.2% of the first $160,200 of
salary in 2023. They also pay 8.0% to CSRS on salary above that amount (i.e., above $160,200 in
2023).
CSRS Offset
Members in the CSRS Offset Plan pay 6.2% to Social Security and 1.8% to CSRS on the first
$160,200 of salary in 2023; they pay 8.0% to CSRS on salary above $160,200 in 2023.

23 Social Security taxes are levied on gross wages. They are not deducted for purposes of determining adjusted gross
income. The taxable wage base increases only in those years where a Social Security cost-of-living adjustment is
payable.
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FERS
Members first covered by FERS before 2013 pay 1.3% to FERS on total salary and 6.2% to
Social Security on the Social Security taxable wage base (first $160,200 of salary in 2023).
Members first covered by FERS in calendar year 2013 pay 3.1% to FERS on total salary and
6.2% to Social Security on the Social Security taxable wage base. Members first covered by
FERS after 2013 contribute 4.4% of total salary to FERS and 6.2% to Social Security on Social
Security taxable wage base.
Social Security
All Members pay 6.2% of their first $160,200 in salary to Social Security in 2023. The Social
Security taxable wage base is indexed to national average wage growth and is typically adjusted
annually.
Pension Plan Benefit Formulas
Pension benefits under both CSRS and FERS are computed according to (1) the retiree’s average
annual salary for the three consecutive years of highest pay (known as high-3 average salary); (2)
the years of service completed under the pension plan, which are prorated based on completed
months;24 and (3) the accrual rate at which benefits accumulate for each year of service. The
pension is the product of these factors, expressed as follows:

High-3
Years of
Accrual
Annual

x

x

=

Salary

Service
Rate
Pension
Pension Benefits Under CSRS
The accrual rate for each year of congressional service covered by CSRS is 2.5%. Therefore, the
CSRS pension equals

High-3
Years of
CSRS

x

x

Salary

.025
=

Service
Pension
For example, after 30 years of congressional service and a high-3 average salary of $174,000, the
initial annual CSRS pension for a Member who retired in December 2014 at the end of the 113th
Congress at the age of 60 or later would be25
$174,000 × 30 × .025 = $130,500
Federal law limits the maximum CSRS pension that may be paid at the start of retirement to 80%
of the Member’s final annual salary. (See 5 U.S.C. §8339(f).) To receive an initial pension equal

24 According to Chapter 50, “Computation of Annuity Under the General Formula,” of OPM’s CSRS/FERS Handbook:
“Length of service for annuity computation purposes is based on whole months (30 days). To determine the total length
of service for annuity computation purposes, add all creditable civilian and military service and the period represented
by the unused sick leave; then eliminate any fractional part of a month” (available at https://www.opm.gov/retirement-
services/publications-forms/csrsfers-handbook/c050.pdf, p. 5).
25 Base pay for Representatives and Senators has been $174,000 in each year since 2009 (including in 2012, 2013, and
2014, as in this example). Pay for House and Senate leadership positions is higher. For more information on pay for
Members of Congress, see CRS Report 97-1011, Salaries of Members of Congress: Recent Actions and Historical
Tables. A retirement date of December 2014 was chosen for illustrative purposes; later retirement dates in combination
with 30 years of Member service would likely involve coverage under FERS or CSRS Offset rather than CSRS.
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Retirement Benefits for Members of Congress

to 80% of final salary, a Member must complete 32 years of congressional service covered by
CSRS (32 × .025 = .80). The smallest starting pension under CSRS is 12.5% of high-3 salary for
a Member with five years of service. (Pensions based on less than 10 years of service cannot
begin before the age of 62.)
Most Members who entered Congress before 1984 and who chose to stay in the CSRS elected the
CSRS offset plan. When a Member who has retired under the offset plan first becomes eligible
for Social Security (usually age 62 or older), the CSRS pension is reduced by the amount of
Social Security benefits that he or she is entitled to as a result of congressional service. This offset
is applied even if the Member does not apply for a Social Security retirement benefit. In the
example above, the offset would be approximately $25,900 annually.26
Pension Benefits Under FERS
For Members of Congress covered by FERS prior to December 31, 2012, the accrual rate for
congressional service covered by FERS is 1.7% for the first 20 years and 1.0% for each year
beyond the 20th. The basic retirement annuity under FERS for Members first elected prior to 2012
is equal to
Years of
[
Years of
High-3
Service
Annual
x
x
Service
Salary
.017 x
]
.01 x

]

through
+ [ High-3
Salary
= Pension
over 20

20

Members who began congressional service before 1984 and who elected to join FERS will
receive credit under FERS from January 1, 1984, forward. Thus, at the close of the 114th Congress
in December 2016, a participant could have a maximum of 32 years of service under FERS.
Assuming that a Member retired at the end of 2016 with 20 years of congressional service under
FERS, and a high-3 average salary of $174,000, the resulting annual FERS pension would be
[$174,000 × .017 × 20] = $59,160
For Members of Congress covered by FERS after December 31, 2012, the accrual rate for
congressional service covered by FERS is 1.0% per year of service, or, if the Member has at least
20 years of service and serves until at least the age of 62, the benefit accrual rate is 1.1% per year
of service. This is the same accrual rate that applies to regular FERS employees.
There is no maximum pension under FERS.27 (It would take 66 years of service under FERS to
reach the 80% maximum permissible under CSRS.) The smallest unreduced FERS pension for
Members first covered by FERS prior to 2013 is 8.5% of high-3 salary with five years of service
(.017 × 5 years), which is payable no earlier than the age of 62. A Member covered by FERS
prior to 2013 with 10 years of service who takes a pension at the earliest allowable age of 55

26 This estimate, calculated for illustrative purposes, is based on the assumption that a Member of Congress who had
been in office on December 31, 1983, and who retired at the end of 2014 would have had 31 years of Social Security
participation as a Member of Congress. According to the Social Security Administration, the monthly benefit for a
career-long high-wage earner retiring at age 65 in 2015 (i.e., all 35 years of earnings in the calculation of Social
Security benefits were at the taxable maximum) would be $2,452. This would be $29,424 on an annual basis. This
amount was then multiplied by the ratio of 31/35, which is the proportion of Social Security participation as a Member,
to produce an estimated offset of $25,900.
27 It is important to remember that this FERS defined benefit pension was designed to complement Social Security
participation and the Social Security benefit.
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Retirement Benefits for Members of Congress

would receive a reduced pension equal to 11% of high-3 salary (.017 × 10 years, reduced by .05
times the seven-year difference between the individual’s age at retirement and the age of 62).28
Pensions for Members with Service Under Both
CSRS and FERS
Members who were participating in CSRS when the FERS plan went into effect could elect to
leave CSRS and join FERS during a six-month open season in 1987.29 Members who switched to
FERS are entitled to a CSRS pension for the years before 1984, provided that they had completed
at least five years of service under CSRS by December 31, 1983. Their service from January 1,
1984, onward is covered under FERS. When these Members retire, their pension is computed
using the CSRS formula for the CSRS-covered years and the FERS formula for the years covered
by FERS. The same high-3 salary, which is generally the salary earned in the three years
immediately preceding retirement, is used in both formulas. The two pension amounts (CSRS and
FERS) are then added together. For Members who switched from CSRS to FERS, FERS rules
govern the age and years of service for retirement eligibility.
For example, the pension for a Representative or Senator who retired in December 2014 at the
end of the 113th Congress with a total of 32 years of service (5 years covered under CSRS and 27
years covered under FERS) and a high-3 salary of $174,000 would be:

$174,000
×
.025
×
5 =
$21,750 (CSRS)
+
$174,000
×
.017
×
20 =
$59,160 (FERS)
+
$174,000
×
.01
×
7 =
$12,180 (FERS)

Total pension = $93,090

Retirement Benefits Under the CSRS Offset Plan
Members who were participating in CSRS before January 1, 1984, and who chose not to switch to
FERS could elect either to have full coverage under both CSRS and Social Security or to stay in
CSRS and have their CSRS contributions and benefits reduced (offset) by the amount of Social
Security taxes paid and Social Security benefits received. New Members who enter Congress
with at least five years of previous civilian federal employment that was covered under CSRS
also may join the CSRS Offset Plan. Under this plan, a Member pays 6.2% of salary up to the
Social Security taxable maximum to Social Security and 1.8% of salary up to this earnings level
to CSRS. When annual earnings reach the maximum amount taxable under Social Security, the
Member pays 8.0% of salary for the rest of the year to CSRS. During retirement, the individual’s
CSRS pension is reduced by the amount of the Social Security benefit that is attributable to his or
her federal service. The reduction in the CSRS annuity begins at the age of 62, whether or not the
retiree elects to receive Social Security at that time.
As an example of the CSRS Offset Plan, assume that a Representative or Senator retired at the
end of the 113th Congress with 31 years of congressional service. According to the CSRS benefit

28 These examples assume that the Member was first covered prior to 2013 and is, therefore, unaffected by the reduced
benefit accrual rates enacted under P.L. 112-96.
29 P.L. 105-61, enacted on October 10, 1997, authorized a second open season from July through December 1998
during which employees covered by CSRS could switch to FERS.
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link to page 15 link to page 15 link to page 15 link to page 13 Retirement Benefits for Members of Congress

formula, this Member’s initial retirement annuity would be $134,850. However, if he or she were
aged 62 or older, this amount would be reduced by an amount equal to the Social Security
benefits earned from congressional service from January 1, 1984, through December 31, 2014.
For an individual retiring in December 2014 at the age of 65 with 31 years of congressional
service covered by Social Security, the annual reduction would be approximately $25,900.30
Replacement Rates
The adequacy of pension plans is often evaluated by comparing the benefits paid at the time of
retirement with pre-retirement earnings. The initial annual pension is computed as a percentage of
final annual pay to derive the earnings replacement rate. This is the proportion of pre-retirement
earnings replaced by the pension. In both CSRS and FERS, pensions are based on the average of
the highest three consecutive years of earnings, which are usually the final three years before
retirement.
Table 1 shows the percentage of high-3 average pay replaced by a congressional pension for a
Member retiring with an immediate pension under CSRS or FERS at specified ages and years of
service. (FERS benefits apply only to service after 1983. Therefore, 2014 is the first year after
which a Member or other federal employee could potentially have completed 30 years of FERS
service. Additionally, FERS benefits were designed to complement Social Security benefits;
therefore, FERS annuities necessarily have lower replacement rates than CSRS annuities.)
Table 1. Annuity Replacement Rates for Members
FERS:
FERS:
Age and Years of
Covered Prior to
Covered After December
Service
CSRS
December 31, 2012
31, 2012
Age 50, 20 years in
42.5%a
34.0%
20.0%
Congress
Age 55, 30 years in
71.3%a
44.0%
30.0%
Congress
Age 60, 10 years in
25.0%
15.3%
10.0%
Congress
Age 62, 5 years in Congress
12.5%
8.5%
5.0%
Source: Congressional Research Service.
Notes: Unless otherwise specified, these replacement rates reflect an immediate, unreduced pension annuity
taken by a Member of Congress. They do not include any Social Security or Thrift Savings Plan benefits. Unlike
CSRS annuities, FERS annuities are designed as a complement to Social Security benefits, as well as the individual
retirement accounts that are part of the Thrift Savings Plan. Therefore, FERS annuities necessarily replace less in
former pay than CSRS annuities.
a. Reflects an immediate pension reduced by one-twelfth of 1% for each month not more than 5 years and
one-sixth of 1% for each month more than 5 years that Member is under age 60 at date of separation.
Cost-of-Living Adjustments
CSRS annuities are adjusted for inflation once each year on the same schedule and by the same
percentage as Social Security benefits. These cost-of-living adjustments, or COLAs, are based on
the rate of increase in the Consumer Price Index for Urban Wage Earners (CPI-W). CSRS

30 See footnote 26 for calculation of this estimate.
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Retirement Benefits for Members of Congress

annuities and Social Security benefits are increased each January by the annual percentage
change in the CPI-W.
Initial CSRS annuities may not exceed 80% of a Member’s final pay. Over time, however, if
congressional pay were to remain unchanged, a retired Member’s CSRS pension could exceed the
nominal amount of his or her final pay. Nevertheless, because COLAs merely prevent the
purchasing power of an annuity from being eroded by inflation, the real value of a CSRS pension
does not increase or decrease during retirement, provided that the price index on which the COLA
is based is an accurate measure of the rate of inflation.
As a cost-control measure, Congress has mandated that FERS annuities will increase by less than
the percentage change in the CPI-W whenever the annual rate of increase in that index exceeds
2.0%.31 If the CPI-W rises by 2% or less, FERS annuities are increased by the same percentage as
the increase in the CPI. If the CPI rises by 2.1% to 3%, FERS annuities are increased by 2%. If
the CPI rises by more than 3%, FERS annuities are increased by one percentage point less than
the rate of increase in the CPI.32
The Thrift Savings Plan
The Thrift Savings Plan (TSP) is a retirement savings and investment program through which
federal employees can save money to supplement their pension income.33 The TSP is open to
participants in both CSRS and FERS, but in consideration of the smaller pensions paid by FERS,
Congress has authorized more generous incentives for workers covered by FERS to save for
retirement through the TSP. In 2023, FERS participants may invest up to $22,500 in the TSP.
Participants who are at least age 50 in 2023 can make an additional catch-up contribution of up to
$7,500. The maximum annual contribution is indexed to inflation.34 Individuals enrolled in FERS
who invest in the TSP also receive a matching contribution from their employing agency on the
first 5% of pay that they invest in the plan. CSRS participants also may invest up to the annual
statutory maximum in the TSP, but they receive no employer matching contributions.
The government automatically deposits into the TSP an amount equal to 1.0% of basic pay on
behalf of an employee enrolled in FERS, regardless of whether the individual voluntarily invests
additional sums. Members of Congress and congressional staff become vested in this 1.0%
agency automatic contribution, plus any investment earnings on it after completing two years of
service. All participants in FERS are immediately vested in their own contributions and in
government matching contributions to the TSP, as well as any investment earnings on these
contributions. Unless an individual chooses the Roth TSP option, contributions to the TSP are
made on a pretax basis; contributions and investment earnings are not taxed until money is
withdrawn from the plan. Under the Roth TSP option, however, employee contributions are made
with after-tax income and qualified distributions from the plan are then tax-free.
Withdrawals from the TSP are subject to the federal income tax—except for qualified
distributions from the Roth TSP option—and withdrawals before the age of 59½ may be subject

31 5 U.S. Code §8462(b)(1).
32 For more details on COLAs for CSRS and FERS pensions, see CRS Report 94-834, Cost-of-Living Adjustments for
Federal Civil Service Annuities.
33 For a more thorough description of the Thrift Savings Plan, see CRS Report RL30387, Federal Employees’
Retirement System: The Role of the Thrift Savings Plan.
34 The annual contribution limits are established in law at 26 U.S.C. §402(g).
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Retirement Benefits for Members of Congress

to a 10% tax penalty.35 There is no penalty if the individual is aged 55 or older and is eligible for
an immediate pension from CSRS or FERS; if the withdrawals are in the form of a life annuity; or
if the withdrawals are taken in a series of substantially equal periodic payments on the basis of
the individual’s remaining life expectancy.36 Employees who leave federal employment can
continue to defer taxes on their TSP account balances either by leaving the money in the TSP or
by transferring all or part of these funds to an Individual Retirement Account (IRA) or other
eligible retirement arrangement, such as a 401(k) plan.37 At retirement, participants may withdraw
money from their TSP accounts in any of four ways:
• Installments (automatic withdrawals)
• Partial distribution of a specified amount
• Total distribution
• Annuity purchase
Mandatory Coverage Under FERS
Until the Legislative Branch Appropriations Act, 2004 (P.L. 110-83), all Members could opt to
decline coverage under FERS. Section 104 of P.L. 110-83, however, amended the provisions of
law applicable to coverage of Members of the U.S. House of Representatives under FERS.
Effective with passage of P.L. 110-83, Representatives (including a Delegate or Resident
Commissioner to Congress) entering office on or after September 30, 2003, may not elect to be
excluded from such coverage. The changes under P.L. 108-83 did not affect Senators. Therefore,
all Senators and those Representatives serving as Members prior to September 30, 2003, continue
to be able to decline FERS coverage.
Retirement Benefits for Members with
Limited Service
The vesting requirement to become entitled to a pension benefit under CSRS or FERS is five
years. Members who do not meet this five-year requirement—for instance, one-term Members in
the U.S. House of Representatives—are not entitled to an annuity under CSRS or FERS. It may
be the case, however, that an individual with less than five years of service as a Member may
meet this vesting requirement as a result of combining previous federal service or additional
federal service subsequent to service as a Member.38
To qualify for a retired worker Social Security benefit, an individual must accumulate at least 40
quarters of covered employment, or 10 years of Social Security-covered employment (among

35 There are some exceptions to the 10% penalty for withdrawals before age 59½. For more information, see CRS
Report R40192, Early Withdrawals and Required Minimum Distributions in Retirement Accounts: Issues for Congress.
36 Individuals who separate from federal service before age 55 can receive monthly payments based on life expectancy
without a tax penalty and withdraw the remaining balance at age 59½ in a lump sum.
37 As authorized under the TSP Modernization Act of 2017 (P.L. 115-84) additional TSP withdrawal options became
effective on September 15, 2019. These expanded withdrawal options include (among other new TSP withdrawal
flexibilities) multiple post-separation partial withdrawals; additional in-service withdrawals for participants 59½ or
older and still employed in federal service; and a new choice about withdrawals from a traditional TSP balance, a Roth
balance, or a proportional mix of both. For more information on TSP withdrawals options, see https://www.tsp.gov/
withdrawals-in-retirement/.
38 For more details on age and length of service requirements for regular federal service under CSRS and FERS, see
CRS Report 98-810, Federal Employees’ Retirement System: Benefits and Financing.
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Retirement Benefits for Members of Congress

other requirements). These Social Security benefits are based on the average of a worker’s highest
35 years of earnings. A Member of Congress with limited service may qualify for Social Security
benefits based on a lifetime earnings and employment history that includes more than
congressional service.
Finally, Members of Congress who participate in FERS—even Members with limited service—
are immediately vested in their own contributions and in any government matching contributions
to their TSP accounts, as well as any investment earnings on these contributions. In addition,
Members of Congress and congressional staff become vested in the 1.0% agency automatic
contribution to their TSP accounts under FERS, plus any investment earnings on it, after
completing two years of service.39
Forfeiture of Annuity
Section 8312 of Title 5 provides that a federal employee, including a Member of Congress, may
not receive a retirement annuity for any period of federal service if that individual is convicted of
certain offenses that were committed during the period of service when the annuity was earned. In
general, the crimes that would lead to forfeiture of a federal retirement annuity under this
provision of law are limited to acts of treason or espionage.
Section 401 of the Honest Leadership and Open Government Act of 2007 (P.L. 110-81,
September 14, 2007) amended 5 U.S.C. Section 8332 to exclude from creditable service toward a
retirement annuity any service as a Member of Congress of an individual convicted of a felony
involving
1. bribery of public officials and witnesses;
2. acting as an agent of a foreign principal while a federal public official;
3. fraud by wire, radio, or television, including as part of a scheme to deprive
citizens of honest services;
4. prohibited foreign trade practices by domestic concerns;
5. engaging in monetary transactions in property derived from specified unlawful
activity;
6. tampering with a witness, victim, or an informant;
7. racketeer influenced and corrupt organizations;
8. conspiracy to commit an offense or to defraud the United States;
9. perjury; or
10. subornation of perjury.
The law directs the Office of Personnel Management to issue regulations to specify the
circumstances under which the spouse or children of such individual may be eligible for benefit
payments under CSRS or FERS, taking into consideration (1) the financial needs of the spouse or
children; (2) whether the spouse or children participated in a specified offense of which such
individual was convicted; and (3) what measures, if any, may be necessary to ensure that the
convicted individual does not benefit from any such payment.
Section 15(a) of the STOCK Act (P.L. 112-105, April 4, 2012) further amended 5 U.S.C. Section
8332 so that a Member of Congress would lose the credit for service as a Member for the

39 These vesting requirements are the same for regular FERS employees, with one exception: the TSP vesting
requirement for the automatic agency 1% contribution for regular employees is three years.
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Retirement Benefits for Members of Congress

purposes of a retirement annuity if convicted of one of the numerous corruption offenses not only
during time served as a Member of Congress, but also if convicted of any of such offenses while
the President, the Vice President, or as an elected official of a state or local government.
In addition, Section 15(b) of the STOCK Act also adds other federal criminal laws relating
generally to public corruption or elections, for which a final felony conviction would result in
losing creditable service as a Member of Congress for federal pension purposes, including,
among other offenses:
1. criminal offenses include conflicts of interest;
2. conspiracy to make false claims;
3. making false claims to the government;
4. vote buying;
5. illegal solicitation of political contributions from federal employees;
6. soliciting political contributions in a federal building or office;
7. theft, conversion, or embezzlement of government funds or property;
8. false statements to the government;
9. obstruction of proceedings before government agencies; or
10. attempt to evade or defeat paying taxes.

Author Information

Katelin P. Isaacs

Specialist in Income Security

Acknowledgments
John Gorman, research assistant at CRS, contributed to the updating of this report.

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.

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