Congress’ socialist retirement plan exempted from budget cuts

So Congress finally took a stab at cutting back their luxurious socialist paid-for-by-you-and-me pension plan that’s nearly double the best pension plan in the private sector.

But there’s a catch.  They exempted current and past members of Congress from the cuts – it only applies to the new guys.

Funny, but I don’t recall the sequester, or the proposed cuts to Medicare and Social Security, only applying to people not born yet.

Chris and I have written before about Congress’ socialist health care plan, where the taxpayer pays far more of a subsidy than most workers can ever hope of getting.  And now, thanks to Paul O’Donnell at CNBC, we learn the intimate deals of Congress’ cushy socialist retirement plan that blows yours out of the water.

Basically, for every dollar put into private pensions, normal retirees get around $1.54 back.

But for every dollar put into congressional and executive branch pensions, government retirees get $2.86 back.

And as I mentioned, Congress already has a wonderful socialist health care plan that you’d be lucky to get even close to.  During the health care reform debate, I had a health care expert run some imaginary numbers on what kind of congressional health insurance Comrade Senator Chuck Grassley (R-IA) is able to get because he’s in Congress:

Ok, so it’s probably best to compare family plans, as that’s the number quoted in the video, and Grassley has/had a family.


Here is the info on the FEHBP plan Grassley got until he was 65:

(We’re using Blue Cross because it’s standard and what most people end up buying)

On the last page, you can see the rates. $356.59 per month for the entire family. The benefits are great (see page before the prices, standard benefits, summery of benefits):

$20 co-pay, $200 for any hospital stay of any length, $0 for outpatient services, all subject to a $300 deductible, so you only pay max $300 per visit. Dental included. Annual limit is $5,000.

Typical Iowa Family

Compare that to a typical plan for a typical Iowan age 64 with a wife and a kid from

I’m using the bestseller, benefits pasted below.

Monthly costs are $541.23. Deductible is $15,000 ($5,000 per person). You still pay 20% of costs even after the deductible is reached. Annual limit is $21,000.

So, let’s take a scenario. Chuck Grassley, the Senator, gets indigestion but thinks it’s a heart attack and goes to the emergency room. The most he pays for that is $300.

John Doe the Iowan has the same problem. He could be stuck paying $5,000, more if the full bill is higher (he pays 20% of all charges over that).

And actually, as we saw the other day, that trip to the emergency room for indigestion could cost more like $21,000.  But not for Tovarisch Grassley!

So while Congress debates just how much to gut your retirement and your health care and your benderal benefits, they’re not touching theirs one lick.

CyberDisobedience on Substack | @aravosis | Facebook | Instagram | LinkedIn. John Aravosis is the Executive Editor of AMERICAblog, which he founded in 2004. He has a joint law degree (JD) and masters in Foreign Service from Georgetown; and has worked in the US Senate, World Bank, Children's Defense Fund, the United Nations Development Programme, and as a stringer for the Economist. He is a frequent TV pundit, having appeared on the O'Reilly Factor, Hardball, World News Tonight, Nightline, AM Joy & Reliable Sources, among others. John lives in Washington, DC. .

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