Representative Steny Hoyer (D-MD) recently announced that he will not seek re-election, making him one of the final members of Congress to retire under the old Civil Service Retirement System (CSRS). He is eligible for a starting congressional pension of $125,550.
Hoyer first entered Congress on May 19, 1981, after a special election for an open seat. When his current term ends on January 3, 2027, he will have served in the House of Representatives for 16,666 days, which amounts to more than 45 years. That length of service places him among a shrinking group of lawmakers who remain eligible for CSRS, the more generous pension system that predates the Federal Employees Retirement System (FERS).
Under CSRS, congressional pensions accrue at 2.5% per year of service, based on the three highest years of a member’s salary. Applying the standard formula to Hoyer’s length of service and his three highest salary years of $193,400 (tied to role as Majority Leader) produces a preliminary benefit well above the statutory limit. However, CSRS pensions are capped at 80% of final salary ($174,000 for rank and file members), limiting Hoyer’s gross annual pension to $139,200.
Because spouses are automatically enrolled for survivor benefits unless they formally decline, a CSRS spousal annuity reduction applies. That reduction is calculated as 2.5% of the first $3,600 of the pension and 10% of the remainder. In Hoyer’s case, this results in a total reduction of approximately $13,650, yielding a net annual pension of about $125,550.
There are other scenarios that could lead to a reduced pension. First, members first elected before the creation of FERS in the mid-1980s were given a one-time option to switch from CSRS to FERS. For those who elected to switch, pension benefits are calculated using the CSRS formula for years of service prior to 1987 and the less generous FERS formula for service thereafter, with the two components added together.
Second, according to the Congressional Research Service, most members who entered Congress before 1984 and remained in CSRS elected coverage under a CSRS offset plan that integrates CSRS with Social Security. Under this provision, when a retired member becomes eligible for Social Security, the CSRS pension is reduced by the portion of Social Security benefits attributable to congressional service.
For decades, National Taxpayers Union and NTU Foundation have tracked and analyzed congressional pensions to promote transparency and accountability. As longtime lawmakers like Hoyer retire, their benefits highlight how legacy retirement systems no longer available to new members continue to shape taxpayer obligations.