Fact Checker: Blum on benefits

Introduction

'I can fly first class back and forth to Washington every week and you all pay for it. ... Today I can go out and lease a luxury vehicle for $825 a month and you all pay for it. ... I personally don't participate in the pension program and I'd love to see it eliminated.”

Source of claim: U.S. Rep. Rod Blum, R-Dubuque, Sept. 15 on KGRN 1410 AM in Grinnell.

Analysis

The first-term congressman for Iowa's 1st District has co-sponsored separate pieces of legislation to eliminate the congressional pension and eliminate travel perks, such as first-class flights and long-term leases.

That doesn't necessarily mean his claims are accurate, though. Fact Checker will examine whether representatives can fly first class, get a least $825 to lease a luxury vehicle and if Blum is participating in the congressional pension plan.

U.S. House members are eligible for reimbursement for first-class flights, according to the congressional members handbook. The handbook doesn't limit the frequency of flights, but requires reimbursed travel be for official business, not campaigns.

Travel is among expenses covered through the Member's Representational Allowance, which in 2014 ranged from $1,195,554 to $1,370,009 per member, with an average of $1,255,909, according to a June 2015 Congressional Research Service report.

Most expenses related to operating the member's office, including staff salaries and benefits, travel costs, printing, furniture, equipment and vehicle rentals among others come out of the allowance, according to the report.

The allowance comes from the House 'Salaries and Expenses” account in the annual legislative branch appropriations bills, which are taxpayer funded.

As to a budget for leasing a vehicle, representatives have an allowance of up to $1,000 per month, according to the U.S. House of Representatives lease website. Gas, maintenance, insurance and registration costs are also covered in addition. The vehicle must come from a list approved by the Environmental Protection Agency to qualify for reimbursement.

For a 24-month lease, which mirrors the term length, $1,000 per month would cover a car valued at $50,000 to $55,000, according to BankRate.com.

This would include some 2016 models of BMW, Volvo, Toyota, Chevrolet and Ford, among others, with more options for older models, according to the approved EPA list and IntelliChoice.com, a consumer website.

Members could get longer term leases, such as 36 months, which have lower rates, but they would be personally responsible for the bill once they leave office.

For the ‘Cadillac' pension plan, as Blum, 60, calls it, members elected after 1983 are automatically enrolled in the Federal Employees Retirement System, according to a July 2015 Congressional Research Office report.

Contributions are made by the member and employer and members can't opt out, according to the report.

'Members of Congress first elected in 1984 or later are covered automatically under the Federal Employees Retirement System,” according to the report. 'Representatives entering office on or after September 30, 2003, cannot elect to be excluded from such coverage.”

With at least five years of service - which Blum has not yet reached - members are eligible for the pension at age 62, and at earlier ages based on longer service, according to the congressional report.

Members can refuse to collect payments when the pension becomes active, and that is what Blum plans to do, Blum spokesman Keegan Conway said.

'Rep. Blum is declining his congressional pension,” Conway said. 'The House office of payroll and benefits has advised Rep. Blum to send a letter upon his retirement to the office stating his desire to not receive his pension and it will not be paid to him.”

Conclusion

First-class flights for Blum and his congressional colleagues are covered by the taxpayer, as he claimed, but they must fit into an approximately $1.3 million a year allowance.

This may sound like a lot of money, but this fund also supports operating costs for an office, including staff salaries, which in Blum's case is 11 staffers, so flying first class weekly as Blum claimed would eat up the budget quickly.

Luxury vehicles is in the eye of the beholder. The $1,000 monthly would cover a high-end ride, but not enough for new Porsches or Cadillacs, which also are not on EPA's approved list. And, again, it would have to fit into the allowance.

Blum is on shakier ground saying he doesn't participate in the pension program.

That is not accurate. Payments to his pension occur automatically. Blum can decline payouts when it comes time to collect, which a spokesman said he will do, but he hasn't yet sent a letter to the House declaring his intention. We are left to take him at his word.

Overall, we give these claims a B.

Criteria

The Fact Checker team checks statements made by an Iowa political candidate/office holder or a national candidate/office holder about Iowa, or in advertisements that appear in our market. Claims must be independently verifiable. We give statements grades from A to F based on accuracy and context.

If you spot a claim you think needs checking, email us at factchecker@thegazette.com.

This Fact Checker was researched and written by B.A. Morelli.