You're saying after "one term" they are continuing their benefits and salary for life? I think they are jerking your chain.
•A pension benefit. People on the federal payroll, including members of Congress, receive a traditional "defined benefit" pension, something that is available to only a small percentage of private-sector workers.
According to the Congressional Research Service, in October 2006 the average annual pension for a retired member of Congress who served under FERS was $35,952, compared with the current $174,000 salary for active members.
(Members of Congress won't be affected by President Obama's proposal for a pay freeze for federal employees — Congress sets its own pay scales separately, and in 2009 and 2010 voted to forgo its usually automatic annual pay increases.)
A member who leaves office before serving five years because of an election defeat or resignation is not eligible for a pension. And any member who is convicted of a crime such as bribery, fraud, racketeering or perjury for acts committed after September 2007 is ineligible.
But, on grounds that working in Congress means uncertain job security, elected members and their staffs receive a larger retirement benefit from FERS for each year of service than other federal employees. They also become eligible for a retirement annuity at a younger age and with fewer years of service.
In return, they contribute a higher percentage of their pay to participate in FERS — 1.3 percent instead of 0.8 percent for most workers. As in the private sector, the bulk of the retirement benefit's cost is picked up by the employer, in this case, the U.S. government.
Members of Congress can begin drawing their full pension at age 62 if they have completed five years of service, at age 50 with 20 years' service, or at any age with 25 years' service. They can collect a reduced pension with 10 years of service at ages 55 to 57, depending on their birth year.
