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Latest Taxpayer's Tab: Presidential Retirement


Michael Tasselmyer
August 26, 2013

Tab Insert

It's no secret that modern ex-Presidents are usually very wealthy. Speaking engagements, book tours, and other private business pursuits away from Pennsylvania Avenue have earned the four living former Presidents -- Jimmy Carter, George H.W. and George W. Bush, and Bill Clinton -- substantial sums of money in recent years. So it may come as a surprise to some that these former Chief Executives are also eligible for millions of dollars in taxpayer-funded retirement benefits, including travel expenses, office and administrative funds, and a $200,000 pension. In this week's Taxpayer's Tab, NTUF examined some of the history behind these programs and how former Presidents are using the funds Congress has authorized them to use.

With the passage of the Former Presidents Act (FPA) in 1958, Congress authorized funding for certain administrative tasks associated with the President's transition into private life. The FPA was introduced in response to Harry Truman's financial difficulties in his life beyond the White House, particularly his inability to respond to the massive volume of mail he continued to receive from citizens still interested in his post-Presidential doings and opinions. The assistance given to modern ex-Presidents includes $1 million in travel expenses, health benefits (assuming 5 years' enrollment in the Federal Employees Health Benefits program), subsidized office rent, and office staff funding. Additionally, ex-Presidents are eligible for a $199,700 pension, which is tied to the salary of the head of any Executive Department.

In Fiscal Year 2012, the General Services Administration spent $3,671,000 on benefits for former Presidents. The infographic below shows the totals for each of the past 5 years, broken down by President:

In the 113th Congress, Rep. Jason Chaffetz (R-UT) has re-introduced the Presidential Allowance Modernization Act, H.R. 248. The bill would limit former Presidents' benefits to $200,000 per year, and do away with office & administrative subsidies, travel expenses, and reduce benefits by $1 for every dollar over $400,000 an ex-President earns in a year.

For more on Presidential retirement perks and the legislative history behind them, check out the latest issue of the Tab online here. You can sign up for future editions by going here.


 

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