March 13, 2009 12:03 PM

Congress Keeps Automatic Pay Raises

By
Brian Montopoli
Topics
In The News
(AP Photo/J. Scott Applewhite)
Despite the efforts of Republican Sen. David Vitter, it looks like automatic Congressional pay raises, first instituted in 1989, are not going away anytime soon.

Vitter, a Louisianan whose personal issues have threatened his political career, pushed to add a ban on the automatic raises to the $410 billion spending bill signed into law this week.

With the economy in turmoil, members of Congress are particularly sensitive to the pitfalls of publicly backing automatic pay raises for themselves. At the same time, they know that if they ban the automatic raises, they will be forced, in the future, to hold a vote every time they want their salaries to go up. And there is never a good time for headlines about relatively rich public officials deciding to give themselves more taxpayer money.

So Vitter's proposal – while a smart move, politically, for him – put Senate and House leaders in a bind. The Associated Press detailed how Senate Majority Leader Harry Reid handled the problem: He told Vitter that it was unwise to add the proposal to the spending bill, since that bill would then have to go back to the House, where it could be killed as a result of the addition.

Instead, Reid said, let's come up with a stand-alone bill on automatic pay raises that doesn't need to be attached to the spending bill, but that has the same effect.

Vitter said he didn't like that idea, because the bill could be ignored by the leadership and never come to a vote, like so many before it. So he forced a vote on his amendment to the spending bill. He lost, and the proposal was kept out of the bill. Reid, meanwhile, promised to take the stand-alone bill seriously and said he was "committed to doing this."

But there is no word on when, or if, Reid might bring the bill up in the Senate, however. As for House Speaker Nancy Pelosi, she refused Thursday to say if she will hold a vote on the stand-alone bill. She did note, however, that Congress voted this week not to take a pay raise next year.

The upshot is this: Instead of being forced to vote whenever they want to give themselves raises, Congress is holding to a system in which they only vote when they don't want raises. Hard to beat that deal.

As the AP notes, a $4,700 pay raise took effect in January; congressional salaries now stand at $174,000. Robert Byrd, who backed the pay raises back in 1989, argues that a system of automatic pay raises avoids grandstanding on the issue; his spokesman said Byrd believes that if members of Congress don't want the raises, they "can return that portion of their salary to the Treasury."

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by caczox October 11, 2010 11:07 PM EDT
By eliminating automatic Congressonal pay raises, people who are federal retirees will be negatively affected. Federal pay raises are tied to Congressional COLA.
Reply to this comment
by DRBain June 2, 2011 1:50 PM EDT
Seems DEAD wrong Federal retirees have been negatively affected! No retired veteran or disabled veteran has gotten a cost of living let alone a pay raise, like congress has, since Obama has taken office!
by tx_pgmr January 2, 2010 5:51 PM EST
Write your Congressman and Senators. Tell THEM what you think.
Reply to this comment
by Chris_I March 15, 2009 5:15 PM EDT
I received a couple 1-2% raises in the 90's but none before or thereafter. I was able to increase my pay only by jumping jobs loosing any vesting in retirement plans. Pay remained stagnant regardless the galloping housing prices and inflation out-pacing income. Has any hourly or salaried worker in the private sector ever been promised automatic pay rises? Sounds ludicrous especially in times of a depression when people loose jobs or must take pay cuts. Those who accept the automatic pay rises sure loose some of their credibility. Have their names listed for the next election, please.
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by whosaid1 March 15, 2009 10:36 AM EDT
And STUPID us.....we just keep on electing them, term after term! What's wrong with us as a people?? Most people learn in basic childhood education that you should not "reinforce undesired behavior". And political party....has nothing to do with it.........they are ALL in it for themselves.......BOTTOM LINE.
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by homespunlady March 15, 2009 1:31 AM EDT
PLEASE!!! this is BULL!!! "Golly Gee" we just "can't" STOP ripping off the taxpayer !!!
Here's ANOTHER PRIME EXAMPLE of HOW LITTLE these DOLTS are laughing while RAPING the American people!!

DUMP AIG!!!!

LET IT FALL!!!

Otherwise they WILL CONTINUE RIPPING US OFF and are openly bragging so until they've blood-sucked the poor and middle class totally DRY!


Insurance giant AIG to pay $165 million in bonuses
Mar 15, 12:58 AM (ET)
By MARTIN CRUTSINGER
WASHINGTON (AP) - American International Group is giving its executives tens of millions of dollars in new bonuses even though it received a taxpayer bailout of more than $170 billion dollars...

The Treasury Department determined that the government did not have the legal authority to block the current payments by the company. AIG declared earlier this month that it had suffered a loss of $61.7 billion for the fourth quarter of last year, the largest corporate loss in history...

The large bulk of the payments at issue cover AIG Financial Products, the unit of the company that sold credit default swaps, the risky contracts that CAUSED massive losses for the insurer.

A white paper prepared by the company says that AIG is contractually obligated to pay a total of about $165 million of previously awarded "retention pay" to employees in this unit by Sunday, March 15. The document says that another $55 million in retention pay has already been distributed to about 400 AIG Financial Products employees.
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by starleo146 March 14, 2009 3:20 PM EDT
These greedy Congressmen who have hearings calling the CEO's horrible for taking A LL THAT MONEY ON BONUS PAY OUT , What is this any different when the country has paid through the teeth for all of these greedy leaches congress, Ceo's, and meanwhile the people who they represent are suffering such a toll for all this. I know when the automatic pay raise went in the Republicans were in charge but all they care about ,both parties is what they can get out of it. What was the final vote?
Reply to this comment
by jcd805 March 14, 2009 2:41 PM EDT
I can only categorize your post as being rediculous as you must have overdosed on the KoolAid. Republicans AND Democrats are not happy about this. Keep drinking that KoolAid.
Reply to this comment
by vincan-2009 March 14, 2009 11:53 AM EDT
174K??? Absolutely disgusting! Vitter is an embarassment and an idiot, however he is RIGHT on this one! Look at all the time congress spends NOT working each year-does ANYONE in America really believe these thieves deserve THIS much pay??
Reply to this comment
by LOL_AT_CBS March 14, 2009 10:39 AM EDT
Of course the Republicans want the Democratic majority to have to embarrass themselves every year giving themselves a cost of living increase. This is a winning move for the Republicans to oppose this. Too bad it's just political strategy.
Reply to this comment
by Solarrays247 March 13, 2009 11:35 PM EDT
This is unacceptable on so many different levels! Our government has failed us....and yet they give themselves a raise?

I hope everyone has a long memory! We had some Pennsylvania lawmakers that did refuse their raises this year! Democrats and Republicans. Let's see everyone on the "Hill" do the same?

I hope everyone has a long memory! Especially those 48 million or so of my fellow citizens who can't even afford health care! BUT, their representatives and senators have some of the best health care programs available....courtesy of 'We The People."

I hope everyone has a long memory! Especially those 5 million plus, is it, who have lost their jobs? (I'm not sure about the accuracy of that number, I've been hearing lots of numbers this week, sorry.) For all of you who have lost your jobs, and are worried about keeping a roof over your head, and food on your table, your electric, and heat going.....remember your representatives and senators who gave themselves another raise.....and couldn't do enough to save your jobs! Remember their names!

Good night, folks!
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