“Politicians have built themselves a golden parachute. The only problem is, it’s our gold that’s paying for it.”
–Libertarian Party Chairman Steve Dasbach.
Want to become a multi-millionaire? Just get elected to Congress and then retire. Better yet, get elected President and take advantage of a pension that, in Bill Clinton’s case, is estimated to amount to at least $7.29 million over the course of his lifetime. Benefits for ex-presidents are doled out without regard to need, and are awarded in addition to other pensions, including those for previous federal service.
The yearly pension for ex-presidents is pegged to the salary of a Cabinet-level official, which is currently $161,200. The pension begins immediately upon leaving office, regardless of how old the president is or how long he has served. Since Cabinet officials’ salaries are constantly being ratcheted up for cost-of-living adjustments, the ex-president’s pension also increases regularly.
As that weren’t enough of a burden on taxpayers, former presidents receive expenses to maintain an office anywhere in the United States, for which the General Services Administration (GSA) must pay. They are free to use this taxpayer-funded office for whatever they wish – only openly partisan political activities are taboo. “All told, the pension and office components for former presidents, including Bill Clinton, will exceed $2.5 million in 2001,” according to a study by the National Taxpayers Union (NTU).
While they are limited to an annual staff allowance of $96,000 per year, there is no ceiling on the amount ex-presidents can pay for office space. Bill Clinton changed his mind about leasing the $800,000 Manhattan office he had chosen, not because of any federal limit, or even because of taxpayer outrage, but because (one would assume) of concerns about its effect on his wife’s political ambitions. His subsequent decision to relocate to Harlem will bring his office expenses in line with those of his closest competitor, Ronald Reagan, at nearly $300,000 per year. Other open-ended funds include reimbursement for travel, office equipment and postage, which are essentially used at the discretion of the former president. Considering the level of “discretion” we have noted in our most recent ex-president, giving him what amounts to a blank check is a frightening prospect.
Former presidents, including Bill Clinton and his predecessors, are entitled to lifetime Secret Service protection, although they may decline this coverage if they wish. Beginning with George W. Bush, ex-presidents will be limited to 10 years of Secret Service protection. Annual costs for this round-the-clock security force are not revealed, but the NTU estimates the cost of Secret Service protection for previous “first family” members could top $20 million this year.
The Former Presidents Act of 1958, which established a pension for former presidents, was designed to help retired Chief Executives make a “dignified transition” to private life. I don’t mind some of my tax money going to ensure that ex-presidents and their widows are kept out of embarrassing financial straits. Certainly, I would rather see ex-President Carter building homes for Habitat for Humanity, rather than qualifying to live in one of them. However, this whole entitlement program is spiraling out of control. I agree with NTU Vice President for Communications Pete Sepp, who recently wrote, “In typical Washington fashion, a program designed to help life ex-presidents out of poverty now helps to land them into the lap of luxury.”
Why has Congress allowed a pension system to be put into place that has no link either to the ex-president’s age, his level of need or his length of service, and which gives him carte blanche to spend taxpayers’ money for an unlimited number of years with no accountability? Efforts to institute some kind of limits have been unsuccessful, suggest Sepp, because they would also open up the congressional pension and perk system to scrutiny. Retired Congressmen now collect pension benefits that are two to three times more generous than those offered in the private sector for similarly-salaried executives.
What can be done to let some of the air out of this particular golden parachute? NTU lists some suggestions on its Web site (ntu.org) that are worth considering:
End the “pension” charade: A pension of $161,200 is just plain too much money, especially considering that ex-presidents earn money for speaking engagements, public appearances and sales of their memoirs. Why should an ex-president receive over $13,400 a month when the average Social Security recipient gets less than $1,000? Shouldn’t there be some provision for establishing financial need? And, former presidents should not be eligible for a “retirement benefit” until they reach the Social Security retirement age.
Enact time limits for perks: The provision for office expenses and postage was intended to allow a former president to take care of expenses involved in making the transition to private life. We should set a time limit, perhaps three or four years, on these perks.
Set limits on office rents: Congress could tie the cost of ex-presidents’ office space to regional rental rates authorized by the GSA for white-collar federal facilities.
Put a lid on libraries: Congress should order a full audit of the $43 million in taxpayer funds spent this year to operate presidential libraries and collections.
For further information on this subject, visit the NTU Web site, then contact your representative in Congress and let him or her know that it’s time to stop turning ex-presidents into millionaires. If they want to receive over $160,000 a year, let them work for it, like the rest of us.
