You may have seen it while scrolling through social media: the assertion that if only Congress and the president participated in Social Security, they would take action on the program’s looming fiscal shortfall.
The truth is that members of Congress and the president are covered by Social Security and receive benefits in the same way as any other worker. However, it seems to be a commonly misunderstood fact.
“There are literally stories out there that are published about (presidents not receiving Social Security),” says Michael Foguth, president and founder of Foguth Financial Group in Brighton, Michigan.
That may be because presidents — along with almost all federal workers — at one time did not participate in the system. But that was long ago, and today they pay taxes and receive benefits under the same rules as the rest of us.
[READ: Where the Presidential Candidates Stand on Retirement]
The Basics of Social Security
Enacted in 1935, the Social Security system began making regular payments to retirees in 1940. While the program details have changed over the years, one of its core functions continues to be providing reliable retirement income to millions of Americans.
“Social Security is available to the wealthiest of us,” says Chris Orestis, president of Retirement Genius, an online retirement resource for older Americans and their families.
However, the wealthy may not pay as much into the system as a percentage of their total income compared to lower-income taxpayers. That’s because there is a cap on the amount of income subject to Social Security taxes.
In 2024, up to $168,600 in earnings are subject to taxes for Social Security. Employers and employees split this tax — 6.2% each — and it is paid via a payroll deduction under FICA, which stands for the Federal Insurance Contributions Act. Self-employed workers must pay the entire 12.4% tax themselves, which is assessed as part of their self-employment taxes.
To be eligible for Social Security benefits in retirement, workers must accumulate 40 Social Security credits. You earn one credit for every $1,730 in covered earnings, up to four credits per year. As a result, most people become eligible for Social Security after working 10 years at jobs where they paid Social Security taxes.
“Retired U.S. presidents do receive Social Security benefits just like any other American who’s paid into the system during their working years,” said Cliff Ambrose, founder and wealth manager at Apex Wealth in Danvers, Massachusetts, in an email.
While most people work in jobs covered by Social Security, there are a few exceptions. And until 1984, presidents had one of them.
[READ: Frequently Asked Social Security Benefit Questions.]
Changes to the System
Government workers were initially excluded from the provisions of the Social Security Act. As a result, they did not pay Social Security taxes and were not eligible for benefits upon retiring. Beginning in the 1950s, changes were enacted to bring government workers into the system, although some state and local government employees even today have jobs not covered by Social Security.
An amendment passed in 1983 stipulated that the president, vice president, Congressional members, federal judges and political appointees be brought into the Social Security system. The change applied to all new hires after Jan. 1, 1984.
“For those hired before 1984, they were given an option for Social Security or the Civil Service Retirement System,” Foguth says. The Civil Service Retirement System was the existing federal government pension system at the time.
As a result, only one living retired president — Jimmy Carter — could be covered under the old system instead of Social Security. The 99-year-old former president left office in January 1981. All other former presidents paid into the Social Security system while in office.
[READ: What to Know About the Bill to Repeal Social Security Taxes]
Retirement Benefits for Presidents
Just as Social Security taxes are capped, there is a limit on how much someone can receive in retirement benefits. For someone beginning Social Security payments in 2024, those monthly maximums are as follows:
— Early benefits at age 62: $2,710
— Full retirement age: $3,822
— Delayed benefits at age 70: $4,873
Social Security is only one benefit that retired presidents can receive. They are also entitled to an annual pension equal to the pay for one cabinet secretary. In 2024, that amount is $246,424. Plus, they may have benefits from previous positions.
“For President Biden, he’s actually entitled to receive both his presidential and Congressional pension,” Orestis says.
Of course, there are other perks that come with being a presidential retiree, such as health care coverage and Secret Service protection. Overall, retired presidents are living larger than most of us, but at least when it comes to Social Security benefits, we are all treated the same.
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Do Retired Presidents Receive Social Security? originally appeared on usnews.com
