Representative Norman Introduces Legislation to Close Pension Loophole for Convicted Members of Congress

Representatives Ralph Norman (R-SC) and August Pfluger (R-TX) introduced the No Congressionally-Obligated Recurring Revenue Used as Pensions To Incarcerated Officials Now (CORRUPTION) Act yesterday. The No CORRUPTION Act closes a loophole that permits members of Congress convicted of a crime to continue collecting a taxpayer-funded pension. 

Two earlier laws - the Honest Leadership and Open Government Act of 2007 and the Stop Trading on Congressional Knowledge Act of 2012 - require forfeiture of a congressional pension for several listed corruption-related crimes. However, because the pension is not stripped until all opportunities for appeal have expired this has meant that after a lawful conviction for corruption, members go on to receive their pensions for years, even while in prison, by filing one appeal after another. In a review of recent convictions and sentencing published a year ago, we were unable to identify any convicted ex-members of Congress who have actually lost their pensions.

If enacted, the No CORRUPTION Act would update the law to immediately halt any federal pension payment to a member of Congress following a lawful conviction. It also provides a constitutional protection to ensure that the full amount of a pension would be paid retroactively in the event that an appeal is successful and a conviction is later overturned.

Upon introduction, Rep. Norman stated, “Americans would be outraged if they knew about the various perks that former Members of Congress receive. Pension payments to those who have been convicted of a crime is yet another fitting example of wasteful spending that needs to be terminated. It is time Members of Congress start acting like everyday Americans, not elitist politicians sheltered by their own rules.”

The reform is especially timely given the sentencing of former Rep. Steve Buyer (R-IN) to nearly two years in prison on September 19 for insider trading and the recent indictment announced against Senator Bob Menendez (D-NJ) for corruption. Buyer is eligible for an annual pension of $48,000, plus annual cost-of-living adjustments, while Menendez is eligible for a pension of up to $71,000, assuming he maximized his benefit amount in office.

NTU applauds Reps. Norman and Pfluger for introducing the No CORRUPTION Act in the House. The bill is the companion to S. 932 introduced by Senators Jacky Rosen (D-NV) and Rick Scott (R-FL) which was unanimously passed by the upper chamber. 

Those who serve in Congress should be held to the highest of standards in order to instill trust and confidence in our government. Achieving the reforms in the No CORRUPTION Act should be a no-brainer.