Salaries
As of January 1, 2008, the annual salary of each Representative is $169,300.[6] The Speaker of the House and the Majority and Minority Leaders earn more. The Speaker earned $212,100 during the 109th Congress (January 4, 2005-January 3, 2007) while the party leaders earned $183,500 (the same as Senate leaders). A cost-of-living-adjustment (COLA) increase takes effect annually unless Congress votes to not accept it. Congress sets members' salaries; however, the Twenty-seventh Amendment to the United States Constitution prohibits a change in wages from taking effect during the same Congress in which it was enacted. Representatives are eligible for lifetime benefits after serving for five years, including a pension, health benefits, and social security benefits.[7]
As of October 1, 2006, 413 retired Members of Congress were receiving federal pensions based fully or in part on their congressional service. Of this number, 290 had retired under CSRS and were receiving an average annual pension of $60,972. A total of 123 Members had retired with service under both CSRS and FERS or with service under FERS only. Their average annual pension was $35,952 in 2006."
he annual salary of each senator, as of 2008, is $169,300;[11] the President pro tempore and party leaders receive $188,100.[12] In June 2003, at least 40 of the then-senators were millionaires.[13] In addition to their salaries, senators' retirement and health benefits are identical to other federal employees, and are fully vested after five years of service.[14]
Senators are covered by the Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS). As it is for federal employees, congressional retirement is funded through taxes and the participants' contributions. Under FERS, senators contribute 1.3% of their salary into the FERS retirement plan and pay 6.2% of their salary in Social Security taxes. The amount of a senator's pension depends on the years of service and the average of the highest 3 years of his or her salary. The starting amount of a senator's retirement annuity may not exceed 80% of his or her final salary. In 2006, the average annual pension for retired senators and representatives under CSRS was $60,972, while those who retired under FERS, or in combination with CSRS, was $35,952.[14]
In general, Senators are regarded as more important political figures than members of the House of Representatives because there are fewer of them, and because they serve for longer terms, represent larger constituencies (except for House at-large districts, which also comprise entire states), sit on more committees, and have more staffers. Far more Senators have been nominees for the presidency than Representatives. Furthermore, three Senators (Warren G. Harding, John F. Kennedy, and Barack Obama) have been elected President while serving in the Senate, while only one Representative (James A. Garfield) has been elected President while serving in the House.
