With President Donald Trump’s swearing in on 20th noon, Barack Obama effectively became a federal retiree.
His pension payment is now $207,800 which is half of his presidential salary.
Just like former presidents, Barack Obama will be offered with “transition” services so that he can swiftly adjust to post-presidential life. In addition to this, he will be offered with lifetime Secret Service protection and also allowances on office expenses, travel, health care coverage and communications, reports CNN Money.
All these extra expenses add up to differing figures from one ex-president to the next. In 2015, Jimmy Carter’s figure was $200,000 while George W. Bush’s value was $800,000, as stated by a government report. Carter is not offered with a health insurance. To qualify for this, you need to have worked for the federal government in more than 5 years.
The origin of the pensions and other benefits can be traced back to 1958 when former President Harry Truman fell into financial difficulties. The Congress is responsible for setting the salaries which are equivalent to what cabinet secretaries earn in a given year.
But this support for ex-presidents maybe limited, considering the current financial times.
Last year, the Republican Congress passed a bill that would have set a flat $200,000 a year in pension payments and capped other expenses at $200,000 a year per president. The cost of living increases for the pension would be tied to the same formula used to increase social security benefits.
But with a new proposed law, the $400,000 dollar may soon be no more. The proposed law reduces pension payments by a dollar for each dollar earned past $400,000. That would mean taxpayers will be off the hook immediately the president earns $800,000 per year.
Considering that majority of former presidents can be paid heftily from speeches and books, presidential support may soon be history.
Currently the president is paid $400,000 but Donald Trump promised not to accept any salary during his term.