Blumenthal makes sure insider traders in Congress lose pensions

Thanks to Sen. Richard Blumenthal, D-Conn., members of Congress who enrich themselves on insider knowledge won’t only face the threat of jail time — they’ll also lose their congressional pensions.

The Senate voted 96-3 Thursday on a bill that would make sure the federal law that prohibits insider trading extends to members of Congress. Blumenthal and Sen. Joe Lieberman, a Connecticut independent, were in the majority who supported the bill

But Blumenthal, a former Connecticut attorney general, wanted to make the bill, known as the STOCK Act, tougher.

He won approval of an amendment to the STOCK Act that would strip congressional pensions from those convicted of insider trading.

“I am greatly encouraged that our colleagues on both sides of the aisle have come together to support this amendment, which will ensure that not one dime of taxpayer money goes to pensions for corrupt public officials,” Blumenthal said in a statement.

Connecticut’s junior senator said he was moved by a National Taxpayer Union study that showed former members of Congress convicted of public corruption are drawing  more than $800,000 per year in taxpayer-funded pensions.

The House plans to consider the STOCK Act next week.