An opening for a discussion on pension reform

It’s probably not necessary to pile on to Duke Cunningham’s already-obvious disgrace, but the question about whether he’ll receive his congressional pension is a matter of broader significance.

Rep. Randy “Duke” Cunningham (R-Calif.) will soon relinquish many of his properties and his freedom after pleading guilty to charges of fraud and conspiracy, but he will keep his government pension and could retain the privileges enjoyed by other former members of Congress.

Cunningham has served in the House 17 years, and his right to his federal pension will not be affected by his crimes, according to a senior House aide familiar with the rules. He will also receive benefits accrued during his service in the U.S. Navy, in which he served from 1966 to 1987.

Ordinarily, upon leaving Congress, former House members, like former senators, get lifetime floor privileges, access to the gym and a parking space.

“The Speaker’s office has yet to receive his letter of resignation,” said Ron Bonjean, a spokesman for Speaker Dennis Hastert (R-Ill.), but he added that the office expects the letter soon. “We are looking at this matter very seriously,” he said. Cunningham’s access to the usual privileges has not been discussed, Bonjean said.

Fair enough. Cunningham’s resignation just happened; it’s not unreasonable to think the Speaker’s office hasn’t made any decisions about Cunningham’s benefits or privileges. But because the existing rules protect members’ pensions, even if those lawmakers have been convicted of crimes and sent to prison, it offers a chance to talk a bit about pension reform in general.

Here’s the pitch voters should hear: A corrupt congressman has more retirement security than you do.

About a month ago, PBS’s NOW with David Brancaccio did a very disturbing piece on the crumbling pension system for millions of American workers.

Currently, 44 million Americans are enrolled in traditional defined benefit pension plans. Here’s how they’re supposed to work: during your working years, your employer is supposed to set aside money on your behalf, with the promise that they’ll pay you a monthly benefit when you retire. But there’s a problem: looking to save money today, many companies aren’t setting aside enough money for the retirees of tomorrow.

Bradley Belt calls that “underfunding.” Add it all up, he says, and the shortfall for America’s pension plans is staggering.

How staggering? It’s a $450 billion problem.

When Duke Cunningham can count on his congressional pension, but workers at United Airlines can’t, it’s time for Congress to take a look at this issue.

How staggering? It’s a $450 billion problem.

Just about the cost of the war in Iraq, hmph.

The PBGC is supposed to solve the pension problem, isn’t it?

  • Actually, Cunningham may have voluntarily given up his pension(s) (USN and Congress) because in his plea agreement, there is a statement that he voluntarily gives up his rights and remedies under the “excessive fines clause” of the Eighth Amendment and specifically foregos “all Federal benefits.” The statement is not further defined, but everyone I know who has read it agrees that it very likely covers these retirement benefits.

    The plea agreement is very interesting. They list each specific act that went into the four charges, and when you read what he gives up, it’s pretty clear he might just become the “live cartoon” of the guy wearing a barrel.

    You can read it here (pdf)

    http://news.findlaw.com/wp/docs/crim/uscnnghm112805plea.pdf

  • When Duke Cunningham can count on his congressional pension, but workers at United Airlines can’t, it’s time for Congress to take a look at this issue.

    This issue will have to take a number, I hear a major sports star’s feelings are hurt. Obviously that demands the attention of our elected officials. 😉

  • The PBGC is currently running about a $23 billion deficit. It would have been almost $26 billion, except that they didn’t count defaults from bankruptcies filed after September 30, 2005, which happens to be the end of the PBGC’s fiscal year.

    Then there are the cases where corporations (such as Halliburton) deliberately use pension money to pay corporate expenses, a practice the Labor Department knows is “very common” because it has “found this all over the country, in small plans and large plans”.

    Then there are the cases of out and out management stupidity and greed, as in the case of KMart and the “Frat Boys”.

    Reform? None too soon, and that’s for damned sure.

  • Assuming that this is a felony conviction – shouldn’t this also raise issues of felons rights? Cunningham retains House access privileges while other felons are denied the right to vote and other statuses of citizenship.

  • I may be wrong but I was under the impression that my husband, who retired from the Air Force, would have lost his pension if he was convicted of a felony. I wonder how I could find out if that were true. But if is true, then the Duke should lose his also…but if the plea agreement specifies losing Federal benefits then he lost them when he signed…But things always seem to be different when it comes to the Congress, the president and others who are high up in government.

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