Chris Dodd to retire (politics)

[Platapus]

Originally Posted by SteamWake

I would love to know what his 'severence package' is like.

Well there is no severance package as he is not being fired, he is retiring.

Since Dodd joined congress in 1975 (35 years ago) he is covered either by the old Civil Service Retirement System but may have switched to the new Federal Employees Retirement System.

Despite popular opinion, members of congress are covered under the same retirement program as all other federal employees (with slight exceptions for USPS employees)

Since Dodd is 65 years old, he is eligible to receive retirement pay immediately upon leaving office.

If he elected to be covered under the old CSRS, it would be difficult to calculate exactly how much he will receive as I don't know how much additional salary he choose to contribute to his retirement. The Base Employee contribution is 7-8% with the government matching the contribution. If he choose to contribute more than 8% (up to a total of 10%) there is no matching government contribution.

The salary of a Senator in 2009 was $174,000. The average retirement pay in congress under CSRS is a little over $60,000 per year

If he elected to be covered under FERS the basic annuity pays 1 percent of the high-3 average for each year of service. If annuitant is aged 62 with at least 20 years of service, add 10 percent (multiply by 1.10). There are some complicated rules about how this is calculated. FERS includes the basic plan, Social Security, and a TSP. Employee contribution is 1% per pay period and can be increased with matching funds from the government.

The average retirement for members of congress retiring under FERS is just under $40,000 per year. Chances are very good that Dodd elected to stay with CSRS I think.

As for health insurance, Dodd will continue to pay the same premium that he paid while on "active duty" under the Federal Employee Health Benefit program, which is the same program all Federal Employees are in (with exceptions for the USPS).