Good news for taxpayers as the Senate unanimously passed Senators Jacky Rosen's (D-NV) and Rick Scott's (R-FL) No CORRUPTION Act (S. 932) yesterday. The bipartisan reform closes a loophole in federal law that permits former members of Congress convicted of a crime to still collect a taxpayer-funded pension.
National Taxpayers Union Foundation brought attention to this issue after discovering that former Representative Chaka Fattah (D-PA) was still eligible for his pension even though he was convicted and sentenced. Based on his years in office, Fattah was eligible for a pension worth $55,000 plus annual cost-of-living adjustments. NTUF estimated that taxpayers paid out $390,770 to Fattah through the end of 2022.
Under the Honest Leadership and Open Government Act of 2007, members of Congress who are convicted of certain crimes are supposed to lose eligibility for their congressional pension. A follow up law, the Stop Trading on Insider Knowledge Act of 2012, added to the list of crimes that would lead to the loss of this benefit. Unfortunately, the pension was not actually forfeited until all opportunities for appeal expire. This means that payments can continue for years until the legal process runs its course. In addition, pensions paid out during this appeals process would not be clawed back even after final conviction.
The No CORRUPTION Act would cut off pension benefit payments once a member has been convicted. If a member's appeal is subsequently successful, the annuity amount would be fully paid out retroactively. This is an important reform that would balance taxpayers’ interest with the constitutional rights of the accused.
The proposal now moves over to the House of Representatives. NTUF commends Senators Rosen and Scott for their leadership on this good government bill.