Most Americans are aware that Congress gets a pay raise every year, automatically, unless they vote against it.

Most Americans are also aware that Congress has some great perks, including paid “junkets” to various locations, paid staff, and great health care.

Did you know that Congress also has a pension plan that is the envy of most top level executives and high-level management too?

The pension that Congress receives (we'll call it “The Congress Pension”) is about three times as generous as those in the private sector for similarly-salaried (six digit) executives.

As an added bonus, these pensions are also inflation-protected; a feature of only 1 in 10 private-sector plans.

In fact, the only person who receives better pension coverage and payout after retirement is the President himself.

Ever wonder why Congress-critters fight so hard to stay in “public service” for as long as they do?

The Congress Pension pays out according to total years of service (military, federal civil, and similar), so the longer they're in office, the bigger the payout when they leave.

In fact, for every year served, their payout accrues by 2.5%, so 10 years means 25% and thus a lawmaker with 10 years in Congress and 10 years previously in the military can retire with 50% accrual.

This accrual means that after retirement, they get that percentage of their maximum salary paid for the rest of their lives.

Doesn't sound like much until you figure in that they're also eligible for Social Security benefits, have free healthcare for life, and also have another lucrative retirement plan in the form of a fully-matched 401(k).

THE THRIFT SAVINGS PLAN 401(k)

The 401(k) I mentioned isn't really like a private-sector 401(k), but operates very similarly. It's called a “Thrift Savings Plan” and participants (meaning members of Congress) can contribute up to 5% of their salaries and receive full matching by the government.

Currently, the average Congressman makes about $165,000 per year. This means that they can contribute up to $8,250 per year into this plan. The federal government then matches that to make it total $16,500. At ten years in office, they've matched a year's salaries just in contributions to this 401(k).

How much do you get to put into your retirement savings 401(k)? I doubt it's that much.

ADDING ALL THIS UP

According to the National Taxpayers Union (NAU), The Congress Pension has paid out between $53,908 and $84,049 per year to members of Congress who retired in 1993, one of which was jailed (Carroll Hubbard, D-KY).

In 1995, The Wall Street Journal asked some private-sector consultants to compare the first year's pension benefits of a member of Congress to that of a similarly-salaried private executive with the same profile. The results? The lawmaker gets about $99,175 while the executive gets just over half that, or $56,220.

LUCKY FOR US

Lucky for us, many members of Congress don't plan to retire at all. Senators like Orrin Hatch and Ted Kennedy seem to be showing little interest in retiring, despite being some of the most aged members of Congress with the longest terms.

Oh, did I mention that another little part of The Congress Pension includes immunity from prosecution and jail while serving your country?

That might explain why so many of these crooks don't want to retire.