Congressional Perks: Not Exactly Hard Times on Capitol Hill

The hours are long and the commute can be tiresome, but being a member of Congress does have its advantages.

By Richard Sammon, Senior Associate Editor, The Kiplinger Letter

June 19, 2007

Membership has its rewards. That holds true in Congress, even as new ethics rules are being applied in the wake of last year's lobbying scandals. Free meals and gifts from lobbyists will be curbed, and there'll be spotlight on the controversial practice of earmarking funds for pet projects popular back home. Lobbyists will also be required to disclose more information on who they make political contributions to and who their clients are. But that's where reforms will likely end.

A host of special perks will remain available to lawmakers, and there's little to no talk of trimming them back -- much to the ire of watchdog groups that claim the benefits prevent lawmakers from understanding the trials and struggles of ordinary citizens and small business owners.

A base lawmakers' salary, for instance, is now $165,200 (a little higher for House and Senate leaders). There is a cheap but excellent federal health care plan and life insurance. Plus free outpatient care from military hospitals. There is an inflation-adjusted pension plan that's almost three times as generous as the typical private sector pension, and there's a special thrift-savings accounts, a kind of 401(k) plan, that comes a one-to-one match up to 5% of a member's salary.

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On top of that, they're given a sizable budget of $2 million to $4 million a year for office administration and staff expenses. There is a furniture expense account, subsidized mass mailings to constituents (known as the franking privilege) and free income tax-return preparation assistance. In addition to all that, members also receive a special tax deduction for maintaining a second residence, and yet more, there are the numerous foreign trips (spouses included) often to exotic places hosted by nonprofit groups. House members, but not senators, can also keep frequent flier miles they rack up on official travel and use them for personal trips later.

What's more, members have exclusive use of the Congressional Research Service to do their legwork. There is free use of broadcast taping studios, free reserved parking at the office and at Washington-area airports and a free member-only gym and pool, expedited passport services and of course the well-appointed and subsidized members' dining rooms.

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