Can congressional retirees contribute to 401(k)-style plans in addition to their pension and Social Security?

1. How congressional retirement works in one line

Congressional retirement under FERS is a three‑part package: a basic FERS annuity (a defined‑benefit pension), Social Security, and the Thrift Savings Plan (TSP), which is the federal equivalent of a private‑sector 401(k) ^[1].

2. The TSP — effectively Congress’ 401(k)

The Thrift Savings Plan is explicitly part of FERS and serves the same role as a 401(k): it accepts employee contributions, invests them, and permits tax‑advantaged accumulation for retirement. Investopedia’s reporting frames TSP as “similar to a 401(k)” and notes the matching structure congressional members receive ^[2].

3. Matching mechanics and the “extra 1%”

Reporting says members of Congress receive matching on TSP contributions “up to 5% of salary per year” and also are given “an extra 1% giveaway regardless of how much the congressperson contributes, if anything” — language that describes the standard federal TSP features for FERS employees: automatic/employer contributions that include a non‑elective 1% plus matching on the first 5% of pay ^[2].

4. Contribution limits and changing caps

TSP contribution limits follow statutory limits that apply to 401(k)-style plans. Coverage of IRS limit changes shows the annual elective deferral and catch‑up limits are set nationally — e.g., 401(k)/TSP limits were reported to rise for 2026, with catch‑up amounts adjusted — indicating congressional TSP participants are subject to the same caps as other federal workers and private 401(k) participants ^[3].

5. Can a congressional retiree still contribute after leaving Congress?

Available sources explain current members and congressional employees participate in FERS/TSP while serving ^{[1] [2]}. Sources do not explicitly state rules about post‑retirement contributions by former Members (for example, whether a retiree can make new TSP contributions after leaving service); therefore, not found in current reporting.

6. Interaction with Social Security and pension rules

FERS was designed to operate alongside Social Security; congressional pensions are financed by employee and employer contributions and interact with Social Security benefits ^[1]. The Federal Register and Congress.gov materials note FERS includes the basic annuity plus Social Security and the TSP component ^{[1] [4]}. Where laws changed benefits (e.g., accrual rates or employee contribution rates), OPM and Congress documentation reflect those statutory adjustments ^{[4] [1]}.

7. Policy context and recent legislative activity that matters

Congress has enacted broad retirement law changes — notably SECURE 2.0 and ongoing bills like the Retirement Savings for Americans Act — that alter eligibility, automatic enrollment, and contribution mechanics for retirement plans generally; such federal changes affect workplace plans and the policy environment that includes TSP by analogy, though specific text about congressional‑only rules is in the FERS statutes ^{[5] [6] [7] [8]}.

8. Competing perspectives and where reporting differs

Most sources agree TSP is the federal 401(k)-equivalent and that members get matching contributions ^{[1] [2]}. Differences in emphasis exist: Congressional briefing material and OPM rules frame FERS as a statutory package with precise eligibility and accrual formulas ^{[4] [1]}, while media pieces emphasize comparative generosity and median balances for members of Congress ^[2]. The media focus on generosity can suggest political critique; official sources emphasize statutory design and recent adjustments to align congressional rules with other federal employees ^{[1] [4]}.

9. Limitations and gaps in available reporting

Sources clearly establish that congressional members have TSP accounts alongside a FERS pension and Social Security ^{[1] [2]}. Sources do not provide a detailed Q&A on post‑service contribution rights, the precise formulaic calibration of the “extra 1%” in statutory language, or step‑by‑step procedures for rollover/IRA interactions after leaving office — those specifics are not found in current reporting and would require consulting OPM/TSP plan documents or IRS guidance (not present in the provided material).

If you want, I can pull and summarize the OPM or TSP plan documents (statute/regulations) to answer the detailed technical points left unaddressed in these summaries.