On the campaign trail, Jesse Kelly has continually struggled to tell the truth when speaking about his opponent. When speaking to audiences through a variety of media–radio, newspapers, the Internet and in person–Kelly has told untruths, and done so repeatedly.

It is unclear whether Mr. Kelly knows the truth and chooses to ignore it, or is just misinformed. What is clear is that Mr. Kelly has repeated untrue statements about his opponent Gabrielle Giffords.

“On simple matters of fact, Jesse Kelly fails to be truthful,” said Giffords for Congress campaign manager Rodd McLeod. “In campaigns, differences of opinion crop up all the time. This is different. Kelly says Giffords voted yes when she voted no; that she eliminated a program that has not been eliminated. Jesse Kelly has let down everyone who believes that honesty is the best policy.”

The memorandum below lays out the facts on three of Kelly’s repeated failures to be truthful.

Untruth #1: Giffords voted for the auto bailout

“She supported the government takeover of the auto industry.” (Jesse Kelly, campaign website op-ed, 11/17/09)

“…That she added 16,500 IRS agents, nationalized the student loan industry, voted for Nancy Pelosi’s budget, voted for the United States Congress to nationalize not only the auto industry, but the energy industry in this country…” (Jesse Kelly, Sierra Vista Town Hall, 08/09/10)

“She voted to nationalize the banking industry and the auto industry, […]” (Jesse Kelly, Arizona Republic, 8/29/10)

The Truth: Giffords voted against the auto bailout

Source: Library of Congress. H.R. 7321, Auto Industry Financing and Restructuring Act. Giffords Voted: NO, Roll Call Vote #690, 12/10/2008.

http://clerk.house.gov/evs/2008/roll690.xml

Untruth #2: Giffords “eliminated” the Medicare Advantage program

“’Giffords cut $500 billion from Medicare and Giffords eliminated Medicare Advantage, and now she is lying about my plan to protect those relying on the system,’ Kelly said in a statement.” (Arizona Daily Star, 9/10/10)

“I find it laughable that the same Congresswoman that voted to cut $500 billion from Medicare, and cut $200 billion from the Medicare Advantage program, basically eliminating that program, would ever address my issues with Medicare.” (Jesse Kelly, Garrett Lewis Show, 790AM KNST, 9/15/10)

The Truth: The Medicare Advantage program has not been eliminated. It will soon offer seniors better coverage for less money.

“The Obama administration announced Tuesday that average premiums paid by individuals for private Medicare Advantage plans, which insure about one-fourth of all elderly beneficiaries, would decline slightly next year, even as insurers provide additional benefits required by the new health care law…

“The announcement came as something of a surprise. Some members of Congress and some health policy experts had predicted that insurers would increase premiums for Medicare beneficiaries in private plans…

‘Despite the claims of some, Medicare Advantage remains a strong, robust option for millions of seniors who choose to enroll or stay in a participating plan,’ said Dr. Donald M. Berwick, the administrator of the federal Centers for Medicare and Medicaid Services.”

Source: “Medicare Advantage Premiums to Fall in 2011,” The New York Times,9/21/10.

Untruth #3: Giffords can “pay a portion” of her Social Security taxes into private accounts through the Thrift Savings Program.

“Americans should have the same options that Giffords, as a member of Congress, has through the Federal Thrift Savings Plan.” (Kelly campaign website “Social Security” tab, accessed 9/23/10)

“… I am also committed to finding a long-term solution that offers retirement choices to young people. They deserve the same sort of program currently enjoyed by Gabrielle Giffords and the rest of Congress through the Federal Thrift Savings Plan. … I propose a system where younger workers can choose to allocate a portion of their money into a personal retirement account that they own. They can watch it grow, just as Gabrielle Giffords does with her own account right now.” (Jesse Kelly, Green Valley News Op-Ed, 9/14/10)

“Gabrielle Giffords has a Federal Thrift Savings Plan, where she’s allowed to pay a portion of her Social Security instead into a private account, but she does not want that for the people of the district.” (Jesse Kelly, Garrett Lewis Show, 790AM KNST, 9/15/10)

The Truth: Every member of Congress must pay into Social Security at the same rates and by the same rules as every other American.

Members of Congress cannot “pay a portion” of their Social Security into the Federal Thrift Savings Plan (TSP). As with other employer-based retirement plans – such as pensions and 401Ks – the TSP is an optional retirement plan in addition to Social Security.

Congressional pensions, like those of other federal employees, are financed through a combination of employee and employer contributions. All Members pay Social Security payroll taxes equal to 6.2% of the Social Security taxable wage base($102,000 in 2008 and $106,800 in 2009). Members enrolled in FERS also pay 1.3% of full salary to the Civil Service Retirement and Disability Fund. In 2008, Members covered by CSRS Offset pay 1.8% of the first $102,000 of salary, and 8.0% of salary above this amount, into the Civil Service Retirement and Disability Fund. [Emphasis added.]

Under both CSRS and FERS, Members of Congress are eligible for a pension at age 62 if they have completed at least five years of service. Members are eligible for a pension at age 50 if they have completed 20 years of service, or at any age after completing 25 years of service. The amount of the pension depends on years of service and the average of the highest three years of salary. By law, the starting amount of a Member’s retirement annuity may not exceed 80% of his or her final salary.

As of October 1, 2007, 435 retired Members of Congress were receiving federal pensions based fully or in part on their congressional service. Of this number, 286 had retired under CSRS and were receiving an average annual pension of $63,696. A total of 149 Members had retired with service under both CSRS and FERS or with service under FERS only. Their average annual pension was $36,732 in 2007.

[…]

The Thrift Savings Plan

The Thrift Savings Plan (TSP) is a tax-deferred investment program through which federal employees can save money to supplement their pension income. The TSP is open to participants in both CSRS and FERS, but in consideration of the smaller pensions paid by FERS, Congress has authorized more generous incentives for workers covered by FERS to save for retirement through the TSP. In 2008, FERS participants may invest up to $15,500 in the TSP. The maximum annual contribution is indexed to inflation. It will increase to $16,500 in 2009. Individuals enrolled in FERS who invest in the TSP also receive a matching contribution from their employing agency on the first 5% of pay that they invest in the plan. CSRS participants also may invest up to the annual statutory maximum in the TSP, but they receive no employer matching contributions.

Source: Retirement Benefits for Members of Congress

Katelin P. Isaacs

Analyst in Income Security

October 28, 2008

Congressional Research Service

7-5700

www.crs.gov

RL30631

Gabrielle Giffords is a third generation Southern Arizonan and the only person in Congress with an active duty military spouse. Gabrielle is not like other politicians. She takes an independent view on the issues and was rated Arizona’s most moderate member of Congress by theNational Journal in 2009. She’s voted against a Congressional pay raise every time one has come up, and she doesn’t make earmark requests for campaign contributors. Most importantly, Gabrielle stands up for Southern Arizona by working across the aisle to secure the border, protect our military and veterans and create jobs by investing in solar energy.

###