Smith Eligible for Federal Pension, Other Benefits
By Max Heuer
WASHINGTON, Oct. 16, 2002–Just because Sen. Bob Smith probably won’t be working for the federal government after he leaves the Senate in early January, it doesn’t mean the government won’t still be paying him.
Smith hasn’t made his retirement plans public yet. But one thing is sure: after 18 years in Congress and two years of active duty in Vietnam, Smith will be eligible for a federal pension for the rest of his life.
Smith, who was elected to the House in 1984, can choose to be covered under the Federal Employees Retirement System (FERS), and also is eligible to receive Social Security retirement benefits when he turns 62 on March 30.
Smith’s press secretary Eryn Witcher said that because Smith was still working he had not asked for his pension to be calculated.
But according to a formula from the Office of Personnel Management (OPM), members who have served 20 years and are 60 years old are eligible to begin receiving their pension immediately.
Although Smith served only 18 years in Congress, he can add his two years of service in the Navy to his total and thus qualify for immediate benefits.
Should he do so, Smith would be eligible for 1.7 percent of the average of his three highest earning years in the federal government, multiplied by the number of years he served in Congress.
Under this formula, Smith, who has earned $150,000 a year for the past three years, according to OPM, would get an annual pension of $51,000 a year if his military service is included in his years of service total.
Members of Congress are also eligible to receive the same health and life insurance benefits as other federal employees.
The federal government offers about 250 different plans, and the most popular fee-for-service family plans available in New Hampshire for Smith-Blue Cross-Blue Shield’s basic family plan or its standard family plan,–would put his premium, paid every other week, at either $75.74 or $94.83, according to OPM.
Smith also is eligible to purchase federal life insurance for himself and his family for up to five times his final salary.
Officials at OPM said the federal health and life insurance plans are attractive to many people because they are inexpensive and numerous.
Published in The Manchester Union Leader, in New Hampshire.
