Commentary – Its unreal to me that the American People could care less that their elected representatives are practically stealing from tax payers as this economy continues to unravel. Why should we guarantee ANY pension? 95% of us do not have a defined benefit plan, but all 535 members of Congress do!!! Every voter is responsible for allowing their government to continue to act in this manner.

Meltdown Retirement Blow Is Softer for Lawmakers

by Erica Werner of AP

Inside Washington: Lawmakers’ retirement plans riding out the storm better than others

Along with the rest of America, Rep. George Miller has watched the value of his retirement investments plummet in recent weeks.

“I’ve lost 30 percent like everybody else. This hits home with the Miller family, too,” the California Democrat said in a recent interview.

But the blow is softer for members of Congress than for most. Although lawmakers have lost value in their thrift savings plans the government’s version of a 401(k) they are also offered a defined-benefit pension plan backed by the U.S. Treasury and largely insulated from Wall Street fluctuations.

Market meltdown or no, if Miller, 63, were to retire at the end of this year he’d take with him an annual pension of about $122,000, according to the National Taxpayers Union, a nonprofit advocacy group in Arlington, Va. On top of that he could tap whatever remains in his 401(k)-like savings plan.

“The government plans are certainly very rich even if you compare them to the pension plans in corporate America,” said Robyn Credico, national director of defined contribution consulting at Watson Wyatt, an employee benefits consulting firm.

“I certainly believe it affects policy,” Credico said, suggesting that members of Congress don’t experience the harsher reality of ordinary workers’ retirement plans. “If you’re not impacted yourself it’s very easy to make different rules.”

That risk was underscored Wednesday at Miller’s hearing in San Francisco, where he announced that the federal agency charged with backstopping pension benefits for 44 million Americans has lost at least $3 billion in stock investments during the last fiscal year on assets of $68 billion, and invested a significant portion of its funds in mortgage-backed securities. The agency, the Pension Benefit Guaranty Corp., insures approximately 30,000 defined benefit pension plans. It does not insure 401(k) plans.

LINK to full article.