Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.twt.news From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: 20 Hill members cite Constitution in pay raise suit Date: Fri, 30 Oct 92 15:33:28 EST Message-ID: \SE A;NATION \SS (WS) \HD 20 Hill members cite Constitution in pay raise suit \BY ASSOCIATED PRESS Twenty House and Senate members filed a lawsuit in federal court yesterday that challenged the constitutionality of a $345-a-month congressional pay raise due to take effect Jan. 1. They contended the court should block a 3.2 percent cost-of-living adjustment that would raise lawmakers' pay from $129,500 to $133,644. The increase violates a constitutional amendment written by James Madison in 1789 but ratified only this year, the suit contended. The 27th Amendment prohibits congressional pay raises from taking effect until an election takes place first. "The attack is not on the legitimacy of Congress granting itself a 3.2 percent raise, but only on the payment of it before an intervening House election has taken place," the suit said. The suit seeks an injunction to prevent the secretary of the Senate and clerk of the House from increasing congressional paychecks or the pensions of retired lawmakers. The attorney filing the suit was John C. Armor of the Denver-based American Constitutional Law Foundation. He said the foundation organized the lawsuit on behalf of 20 incumbent lawmakers, at least 106 House and Senate candidates, the American Legislative Exchange Council and various Washington-based organizations that believe the new amendment bars the cost-of-living adjustment. House Speaker Thomas S. Foley, Washington Democrat, maintains that the adjustment doesn't conflict with the amendment. The pay adjustments were tied to a Labor Department measurement, the Employment Cost Index. Meanwhile, the National Taxpayers Union in a study released yesterday estimates that re-election Tuesday will be worth an extra $1,000 a month for life for the typical veteran incumbent member of Congress. The NTU said such an incumbent could increase his lifetime pension by more than $300,000 - pushing the total higher than $1.9 million - just by winning re-election to one more two-year term. For up to 18 veteran House members, the increase could be more than $500,000. Re-election could mean lifetime pensions exceeding $1 million for 186 of the 193 House members who first won election before 1984 and are seeking new terms Tuesday. The taxpayer organization estimated 68 of them would be eligible for $2 million or more. At the same time, 23 could qualify for $3 million and three would be eligible for pension payments totaling $4 million. The average first-year pension of these lawmakers would be $48,533 if they retired in January, or $60,646 if they delayed retirement until 1995. Twenty-two senators stand to fatten their potential pensions considerably by winning re-election. The calculations are based on public records and insurance industry estimates for life expectancy. The figures assume annual cost-of-living increases of 4 percent. Congressional pensions, which are generous by any measure, are based on a member's three highest earning years and total years of service. Members generally contribute 8 percent of their pay. Winning a new term would boost pensions in two ways: Members would get an additional two years of service and a 3.2-percent cost-of-living salary increase, for a total annual salary of $133,600, in January. But not everybody wins by winning re-election. Some aging lawmakers would be better off financially taking retirement, said David Keating, executive vice president of the foundation. "They are at the age that each year served is a year they aren't drawing their pension," he explained. "They could lose it in the long run - unless they feel they are in better health than the average person their age." This article is copyright 1992 The Washington Times. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM