Congressional Pensions Are Much Too GenerousPUBLICINTEGRITY.Org Pension Protection Agency (PBGC) Cited for Audit Failure, Misleading Congress John Solomon May 3, 2010 Excerpts: Last November, the federal corporation charged with protecting Americans’ retirement funds issued an ominous public warning: the amount of pensions at risk inside failing companies had more than tripled during the recession. Read the audit of Pension Benefit Guaranty Corporation and its correspondence with Sen. Grassley and Rep. Issa. This article also appears on NPR’s website. The Pension Benefit Guaranty Corporation’s announcement signaled it might need tens of billions of new dollars to rescue traditional pensions paid by U.S. firms whose economic collapse left them unable to meet their retirement obligations to workers. At the same time, however, the federally chartered corporation was receiving some bad news of its own: for the first time it was going to flunk an independent audit of the way it manages its finances. On Nov. 12, 2009, PBGC’s outside audit firm and the corporation’s own internal watchdog jointly informed the federal body it was being cited for a “material weakness” in its internal financial controls, the accounting equivalent of an F grade.
WALL STREET JOURNAL The Public Pension Shakedown April 19, 2009 Full article WALL STREET JOURNAL Excerpts: President Obama's auto fix-it man, Steven Rattner, is in the news as one of the Wall Street financiers hit up for big money as part of New York state's unfolding pension-kickback scandal. The White House says he's done nothing wrong, and there's no public evidence that he broke any laws.[Review & Outlook] Getty Images But Mr. Rattner's high profile is nonetheless useful in drawing attention to the real story here, which is the growing evidence of corruption by officials who use their power over public pension funds to shake down private companies. This is the same political class that has been blaming banks for "greed" in the financial crisis. The pension fund scandal exposes the myth of the superior virtue of the public and nonprofit worlds. Greed is universal. And the opportunity for corruption is enormous when political discretion is tied to vast sums of public money. New York Attorney General Andrew Cuomo and the Securities and Exchange Commission allege that investment firms paid politically connected "placement agents" in return for a piece of New York's $122 billion pension fund. The AG has indicted three politicos for kickbacks, but the media have focused on the private firms that hired some of these political agents. Thus the attention on Mr. Rattner, who as co-founder of the Quadrangle investment firm met with a consultant about paying a finder's fee for pension cash. Congress' job approval rating dropped five percentage points, in July, to 14% . This is down another 5 percentage points, making the current reading the lowest congressional job approval rating in the 34-year Gallup Poll history. The previous low was 18%, in May 2007. June 21, 2007 Americans' Confidence in Congress at All-Time Low Confidence in most institutions drops by Frank Newport GALLUP NEWS SERVICE May 2007 PRINCETON, NJ -- The percentage of Americans with a "great deal" or "quite a lot" of confidence in Congress is at 14%, the lowest in Gallup's history of this measure -- and the lowest of any of the 16 institutions tested in this year's Confidence in Institutions survey. It is also one of the lowest confidence ratings for any institution tested over the last three decades. Gallup's annual update on Americans' confidence in institutions shows that confidence ratings are generally down across the board compared with last year. The public's confidence ratings in several institutions, including Congress, are now at all-time low points in Gallup's history of this measure. These low ratings reflect the generally sour mood of the public at this time. Of the 16 societal institutions tested in Gallup's 2007 update, Americans express the most confidence in the military. They have the least confidence in HMOs and Congress. Americans have much more confidence in "small" business than in "big" business. Basic Data Gallup's annual update of the public's confidence in institutions -- conducted June 11-14, 2007 -- shows that all but 2 of the 16 institutions included in this year's survey have at least slightly lower confidence ratings than last year (although most of these changes are not statistically significant). The largest drops in confidence between 2006 and 2007 are eight percentage points for banks, the presidency, television news, and newspapers. There has been no change in the ratings of big business and HMOs. The drop in confidence in most institutions coincides with a period of time in which Americans have low levels of overall satisfaction with the way things are going in the United States, are giving Congress and President Bush low approval ratings, and are very negative about the direction of the economy. There is little doubt that this same "malaise" is reflected when respondents are asked to rate their confidence in the list of 16 societal institutions in Gallup's annual update. Whether these low ratings are becoming a permanent fixture of the American psyche or represent a short-term bout of public depression remains to be seen. The general pattern of confidence in institutions has remained similar in recent years. There are three institutions tested this year in which a majority of Americans express a great deal or quite a lot of confidence: the military, small business, and the police. Two institutions tested have confidence ratings in the 40% range -- the church/organized religion and banks. All other institutions generate a great deal or quite a lot of confidence from less than 40% of the American population. The five institutions at the bottom of the list -- each with confidence ratings below 20% -- are the criminal justice system, organized labor, big business, HMOs, and Congress. Congress and the Other Two Branches of Government Confidence in the three branches of government -- executive (the presidency), legislative (Congress), and judicial (the Supreme Court) -- has been drifting downward over the past several years, following historically high ratings in the years immediately after 9/11.
With 20-25 years, a Member of Congress could retire with up to 80 percent of his or her salary replaced. Of course, the only cap on how fast their benefits rise is the rate of increase in CPI. (Consumer Price Index) For this reason, Congressional Pensions-Senators and House members-can and frequently do, exceed a Member’s final salary, ($160,000 a year, and rising) but only after a few years in retirement, when COLAS (Cost of Living Adjustments) begin to kick in. Isn't it sad, our elected officials have to wait a few years before their pensions go above the $160,000 salary they receive? Lawmakers pay 8 percent of their salaries into their pension system. This compensates for about 1/5 of the typical lifetime benefit. We cover the rest as taxpayers. Although two statements have circulated: 1.that congressmen do not pay into social security and 2.they retire at their last year of salary, are false, the benefits they do receive are far too generous. Information above comes from The National Taxpayers Union. Congressional Pensions To National Taxpayers Union It is also true that Congressmen receive congressional pensions by serving only 5 years. We should seek candidates who will vote to put themselves into the same system as all taxpayers. Congressional Pensions Set Bad Examples
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