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Friday, November 8, 2024

Closing a Corruption Loophole: The No CORRUPTION Act

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Senator Rick Scott | Senator Rick Scott Official Photo

Senator Rick Scott | Senator Rick Scott Official Photo

The No Congressionally Obligated Recurring Revenue Used As Pensions To Incarcerated Officials Now (No CORRUPTION) Act is a bipartisan bill that aims to close a significant loophole in federal law, which allows convicted politicians to continue receiving federal pensions. The Senate has unanimously passed the bill, and it now awaits a vote in the House.

The loophole originated from well-intentioned laws passed over a decade ago. In 2007, the Honest Leadership and Open Government Act (HLOGA) was enacted to address controversies surrounding former lawmakers convicted of serious criminal charges who were still eligible for taxpayer-funded pensions. The HLOGA specified that conviction for several corruption-related crimes would result in the forfeiture of a congressional pension. The Stop Trading on Congressional Knowledge Act (STOCK) of 2012 further expanded on HLOGA by adding additional crimes that would strip members of their pensions.

However, under these laws, former members of Congress convicted of a felony only forfeit their pensions after exhausting all appeals. This allows convicted politicians to file appeal after appeal, delaying the legal process for years while still collecting their pensions, even while serving federal prison sentences.

The National Taxpayers Union Foundation discovered this loophole when it was revealed that former Rep. Chaka Fattah (D-Penn.) remained eligible for his estimated $55,000 pension, plus annual cost-of-living adjustments, one year after his conviction in 2016 for racketeering conspiracy, wire fraud, mail fraud, and falsification of records.

Since the passage of HLOGA and the STOCK Act, no members of Congress have been confirmed to have forfeited their pensions. Recently, former Rep. Steve Buyer (R-Ind.) was convicted of an insider trading scheme and sentenced to 22 months in prison. His annual pension, as a result of his time in the House of Representatives from 1993 to 2011, could be worth up to $48,000, plus annual cost-of-living adjustments.

Another member, Sen. Bob Menendez (D-NJ), has also found himself facing legal troubles. He was indicted for corruption in September, and a follow-up indictment in October for operating as a foreign agent could potentially strip his estimated $70,100 congressional pension.

To address this issue, the No CORRUPTION Act would cut off pension eligibility upon initial conviction, preventing convicted politicians from continuing to receive taxpayer-funded pensions. Additionally, the bill ensures that convicted former members of Congress who receive a presidential pardon would not receive their pensions unless their convictions are overturned by a court.

The No CORRUPTION Act not only protects taxpayers but also safeguards the legal rights of the convicted. If an appeal successfully overturns a conviction, the congressional pension held in abeyance would be retroactively paid in full.

The passage of this bill in the Senate is a significant step towards holding elected officials accountable and protecting taxpayers' hard-earned money. Rep. Ralph Norman (R-S.C.) has introduced the No CORRUPTION Act in the House with bipartisan support, and it is crucial that this bill moves forward to bring about real reform and end the dysfunctional practices in Washington.

In conclusion, Sen. Rick Scott and Demian Brady, Vice President of Research at the National Taxpayers Union Foundation, emphasize the importance of closing the corruption loophole and ensuring that those who serve in Congress are held to the highest standards. The No CORRUPTION Act is a crucial step in this direction, and it is essential to pass this legislation to protect the integrity of our public servants and the interests of the American people.

To find out more, go to this link: https://www.rickscott.senate.gov/2023/12/closing-a-corruption-loophole-rick-scott-and-demian-brady

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