The average American household currently earns around $50,000 dollars per year. Congressmen are currently paid $174,000 dollars per year (thats more than 3x 's the average households income).
By reducing congressional salaries and pensions to a more sensible level, the American people have taken a step forward in reducing the greed associated with obtaining a political position.
They have also forced congress to understand that 1-3% percent taxes increases that reduce monthly earnings by $50-$150 dollars a month have a big impact on your average Americans financial responsibilities.
Lastly, it encourages political positions to not become a lifetime employment option of ever increasing annual benefits, but a set period of time to truly serve your country.