Sen. Bob Menendez (D-NJ) was convicted today on all 16 counts brought against him by the Department of Justice. Due to the corruption crimes, he should forfeit his taxpayer-funded congressional pension. However, the pension-stripping provisions originally enacted through the Honest Leadership and Open Government Act of 2007 and the STOCK Act of 2012 will not kick in until Menendez is “finally convicted.”
Upon leaving office, Menendez will remain eligible for his pension as long as he has remaining appeals against his conviction, one of which he will be able to file following his upcoming sentencing hearing. Based on his years in office, Sen. Menendez could receive up to $71,000 a year on the taxpayers’ tab for as long as he fights the charges. What’s more, the money he receives during the appeals process is not reclaimed, even if those appeals ultimately fail.
The No Congressionally Obligated Recurring Revenue Used As Pensions To Incarcerated Officials Now (No CORRUPTION) Act would solve this problem by changing the pension-stripping provision to start upon initial conviction rather than “final conviction.” If an appeal was successful, the money halted by the No CORRUPTION Act would be paid back in full. This way, taxpayer money is not given away to felons, and the rights of the taxpayer and the rights of the accused are balanced.
Introduced in the Senate by Sens. Jacky Rosen (D-NV) and Rick Scott (R-FL), the No CORRUPTION Act was passed unanimously last July. Reps. Ralph Norman (R-SC) and August Pfluger (R-TX) introduced the bill in the House where it awaits action.
National Taxpayers Union Foundation has been the leader in publicizing the loophole. As highlighted in a recent Wall Street Journal article by NTUF’s Demian Brady, and in the Sun Sentinel by Sen. Scott with Brady, Menendez’s corruption trial has sparked renewed interest in ending congressional pension disbursements following a conviction. Ending these disbursements is a common-sense reform that would protect taxpayers, while also protecting the rights of former members who successfully overturn their convictions.
If you would like to speak with NTUF Vice President of Research Demian Brady about congressional pension reform or the corruption case of Sen. Bob Menendez, please contact NTU Communications Manager Courtney Manley at 703-299-8671 or courtney.manley@ntu.org.