Presidential Retirement Plans

 Presidential Retirement Plans

Presidential Retirement Benefits

 Ever wonder what type of retirement benefits a former president receives, once he leaves office? Well you’ll be surprised what they get. The benefit package came about due to former President Harry S. Truman complaining to former House Majority Leader John McCormack that he was going broke due to excessive postage in responding to all the correspondence he received. The year was 1957 and by 1958 the Former Presidents Act (FPA) was created in Congress to help maintain the dignity of former Presidents by allotting them $25,000 per year for postage and office expenses. Truman never received any the FTA funding, but President Eisenhower was the first to benefit from it.

The FTA is administered by the General Services Administration (GSA). The FTA begins the minute the President leaves office and is paid out yearly until said President dies. Each President received not only the lifetime federal pension is between $210,700 per year to $230,000.00 per year. This figure is taxable, but each president also received non-taxable funds to cover office leases, cleaning services, office staffing, and office supplies. This amount does not include secret service costs for the protection of the former president. There is also a widow's pension for the surviving widow of any former president should she outlive the president. That costs the taxpayer $20,000 per year for the lifetime of the widow along with free postage unless the widow waives the offer of help.

Total overall benefits cost the taxpayer over $5.6 million per year for the following: Remember we have former Presidents Carter, Clinton, Bush, Obama, and now Trump.

Office Space and Staffing Allowances: Beginning six months after a President leaves office, the General Services Administration (GSA) provides funding to establish, furnish, and staff an official office anywhere in the U.S. For the first 30 months after leaving the office the GSA pays out $150,000 per year to help offset the costs of establishing their office. Staffing allocation is another $150,000 yearly, anything above that is paid for by the former President personally.

Travel Expenses: For travel that is related to U.S. Federal Government business, the GSA pays for the former President and up to two staff members for expenses that are at most up to $1 million in costs annually. Spouses of former Presidents also are eligible for up to $500,000 per year for security and official travel. All personal travel is at the cost of the former president and not compensated by the GSA.

Health Benefits: Many believe that former Presidents receive lifetime healthcare once they leave office, but that is not true. In fact, unless they hold the Presidential office for two terms or hold another federal position such as Congress/Senate or federal employment position, they are not eligible for lifetime health benefits under the Federal Employees Health Benefits program. Former President Carter is the only living former president who is not eligible for lifetime healthcare benefits. 

Funerals: Presidents are guaranteed a ceremony with full honors and the option to be buried at Arlington National Cemetery.

Secret Service Protection: Presidents are eligible for lifetime protection. The related costs are classified under the Former Presidents Protection Act of 2012. Prior to the enactment of the FPPA of 2012, former Presidents only received Secret Service details for 10 years after leaving office. Security after that time would be paid by the former President. In 1985 Former President Richard Nixon gave up his Secret Service protection and paid for his own security. He thought the expense was too much for the taxpayer to burden, at that time it was $ 3 million per year.

Surprisingly enough Congress decided in April 2015 to introduce a bill titled The Presidential Allowance Modernization Act that would cap the pensions of all former and future presidents at $200,000 per year and reduce current provisions in the FPA that would link pensions to the annual salary of cabinet secretaries. The bill would also reduce allowances to be paid to no more than $400,000 per year.

Elizabeth Kilbride is a Writer and Editor with forty years of experience in writing with 12 of those years in the online content sphere. Graduating with an Associate of Arts from Pheonix University, then a degree in Mass Communication and Cyber Analysis from Phoenix University, then on to Walden University for her master’s in criminology with emphasis on Cybercrime and Identity Theft and is currently studying for her Ph.D. degree in Criminology, her portfolio includes coverage of politics, current affairs, elections, history, and true crime. In her spare time, Elizabeth is also a gourmet cook, life coach, and avid artist, proficient in watercolor, acrylic, pen and ink Gouache, and pastels. As a political operative having worked on over 300 campaigns during her career, Elizabeth has turned many life events into books and movie scripts while using history to weave interesting storylines. She also runs 6 various blogs from art to life coaching, to food, to writing, and opinion or history pieces each week.