Two longtime Democratic members of Congress from New York, Representatives Jerrold Nadler and Nydia Velázquez, recently announced they will not seek reelection in 2026. When they leave office on January 3, 2027, each will have served more than three decades in the House of Representatives, making them eligible for sizable taxpayer-funded pensions. Assuming they took the steps available to maximize their payouts, Nadler’s estimated starting pension is about $80,000 per year, while Velázquez’s is roughly $79,000 per year.
Congressional Pensions
In 1946, Congress passed a law that provided retirement benefits for representatives and senators through the Civil Service Retirement System. The benefit is available to those who have served at least five years in office. When a law in 1983 required members of Congress to participate in Social Security, lawmakers needed a new retirement structure that coordinated with Social Security rather than replacing it. These changes led to the Federal Employees Retirement System (FERS), adopted in 1986, and a later adjustment that increased member contribution rates and reduced benefits for those entering Congress starting in 2013.
Members first elected before the 2013 reforms remain covered under the original FERS formula, which provides a 1.7% accrual rate for the first 20 years of service and 1.0% for each year thereafter. Pension amounts are based on the average of a member’s highest three years of salary, typically the standard $174,000 for rank-and-file lawmakers.
Nadler started in Congress on November 3, 1992, after a special election, and Velázquez on January 3, 1993. Both will conclude their service on January 3, 2027, with each having spent just over 34 years in office.
Under the FERS formula, Nadler is eligible for an estimated starting annuity of $79,658, while Velázquez’s comes to $79,377. Both figures assume a standard 5% spousal set-aside. Their long tenures place each member near the upper range of pension benefits available to rank-and-file lawmakers, and both will receive annual cost-of-living adjustments going forward.
Will Nadler and Velázquez Join the Retirement Migration Trend?
While both members will have generous taxpayer-funded pensions, their next decision mirrors one facing many New Yorkers: whether to stay in a high-tax state or relocate somewhere with a friendlier tax climate.
Research from NTUF’s Andrew Wilford highlights a striking trend: New York consistently loses taxpayers and taxpayer income to other states. Over the past decade, New York lost $111 billion in net adjusted gross income. Meanwhile, states like Florida, Texas, and North Carolina continue to attract higher-income taxpayers seeking lower taxes and a more stable cost of living. This exodus has serious consequences for the Empire State’s budget:
New York’s net outmigration will reduce tax revenue at the state and local levels by an estimated $3.8 billion in 2025 alone.
The pace of departures has accelerated.
Most outbound New Yorkers head to low-tax states, where pensions and other retirement income stretch further.
Given these trends, Nadler and Velázquez may find themselves weighing the same considerations as hundreds of thousands of their constituents who have already opted to leave the Empire State.
Conclusion
For decades, National Taxpayers Union and NTU Foundation have tracked and analyzed congressional pensions and other retirement benefits to promote transparency and accountability. Most recently, we estimated that former House Speaker Nancy Pelosi’s retirement after this Congress will net her an annual pension starting at nearly $108,800—among the highest available under FERS—and that the date Rep. Marjorie Taylor Greene selected for her departure from Congress will secure her congressional pension.
Our research has informed bipartisan efforts such as the Honest Leadership and Open Government Act, the STOCK Act, and 2024’s No CORRUPTION Act, which aim to strengthen ethical standards and maintain public trust in government.