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What is the current Congressional pension formula for House members (CSRS vs. FERS)?
Executive summary
Members of Congress may receive retirement annuities under two different systems: the older Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS); the annuity is computed from a "high‑3" salary multiplied by an accrual rate and years of service (Pension = salary base × accrual rate × years of service) [1]. CSRS uses higher, tiered accrual rates (1.5% for first 5 years, 1.75% for years 6–10, and 2.0% thereafter, yielding 56.25% of high‑3 pay after 30 years) while FERS uses lower flat accrual rates but includes Social Security and TSP components; Members covered by FERS before 2013 get enhanced rates (1.7% for first 20 years, 1.0% thereafter) and those covered 2013+ may use other FERS rates such as 1.0% or 1.1% depending on age and service [2] [3] [4].
1. How the two systems compute a congressional pension — the arithmetic behind the headlines
Both CSRS and FERS use the same conceptual formula — multiply a salary base (the high‑3 average) by an accrual rate and years of service — but they plug in different accrual schedules and different companion benefits [1]. Under CSRS the accruals are tiered: 1.5% of high‑3 for each of the first five years, 1.75% for years six through ten, and 2.0% for each year after year ten [2]. Under FERS the pension “basic annuity” is smaller because employees also receive Social Security and Thrift Savings Plan (TSP) benefits; traditionally FERS members (including many Members of Congress) have used accruals like 1.7% per year for the first 20 years and 1.0% per year after that — but the precise rate can vary by the Member’s date of first coverage [3] [4].
2. Who falls under which formula — the timeline matters
CSRS is the legacy plan for people in federal service before FERS began in 1987; Congress members in office prior to certain cutoffs could remain under CSRS, switch to FERS during an open season, or end up in hybrid arrangements such as CSRS Offset (which mixes CSRS annuity and Social Security offsets) [2] [5]. Members first elected after December 31, 2012, are subject to the post‑2013 FERS accrual rules referenced in CRS analysis, and members first covered earlier may keep enhanced FERS rates [3].
3. Examples and practical limits — the 80% cap and “high‑3” matter
By law a starting congressional annuity may not exceed 80% of the member’s final salary, so even generous accrual math is constrained by statutory caps [6]. The salary base is the “high‑3” — the average of the three highest years of pay, typically the last three years before retirement — which determines the dollar value when multiplied by accrual and service [5] [1].
4. Special cases: CSRS Offset, enhanced FERS for Congress, and age rules
Some Members have hybrid arrangements. CSRS Offset retirees get a CSRS annuity that is later reduced by the portion of Social Security attributable to federal service once Social Security eligibility begins (typically age 62) [5] [7]. Congress and congressional staff have long been treated as a special category under FERS with enhanced accruals for those covered before 2013, and those special rules also affect contribution rates and retirement eligibility ages [3] [8].
5. What the official sources say — who to trust for a calculation
Congressional Research Service (CRS) summaries and OPM guidance give the definitive structure for how pensions are computed (high‑3 × accrual × years) and show the different accrual schedules and offsets; OPM also publishes the FERS computation specifics such as the 2.5% and 1.7/1.0 percentages used in different contexts [1] [4] [5]. Independent analysts (e.g., FactCheck, Tax Notes) reiterate the 80% cap and emphasize that averages and examples can vary greatly depending on service and plan [6] [7].
6. Limitations, disagreements and what reporting does not cover
Available sources do not mention specific dollar pensions for every current Member without running individualized calculations; examples in reporting (average pensions, high‑service illustrations) are illustrative and depend on service length and retirement age [9] [7]. Some secondary outlets state round numbers like an 80% maximum or $139,200 figures tied to a $174,000 salary, but these are ceiling examples rather than typical outcomes and depend on the particular salary used [10] [11]. Changes proposed in legislative packages (e.g., altering the averaging period or contribution rates) are tracked by CBO/CRS and could alter future calculations for some cohorts [8].
If you want, I can run a sample calculation for a hypothetical Member (give me years of service, age at retirement, and which system/date of first coverage) and show the step‑by‑step math using the CRS/OPM formulas cited above [1] [4].