Social Security And Inequities Toward Women
Mr. Speaker, I thank my colleague, the gentlewoman from Florida (Ms. Ginny Brown-Waite), for organizing this important Special Order for this evening. As co-chair of the Women's Caucus and founder of the Women's Action Public Affairs team,…
Mr. Speaker, I thank my colleague, the gentlewoman from Florida (Ms. Ginny Brown-Waite), for organizing this important Special Order for this evening.
As co-chair of the Women's Caucus and founder of the Women's Action Public Affairs team, the gentlewoman from Florida (Ms. Ginny Brown- Waite) is a strong leader in this body, dedicated to improving the lives of women across the country.
Today, headlines in the newspapers across the country continue to address the issue of Social Security reform as they have for many months now. Here on the Hill, Members on both sides of the aisle continue to debate the nature of this crisis and argue what they think are the greatest problems within the current Social Security system and how they think we should best address the issues.
I do want to address the issue of women and retirement tonight, but first I would like to add a few comments based on our colleague from across the aisle who just gave a 5-minute about the state of Social Security.
He mentioned that in 1998 the Democrats took up the issue of Social Security. I was elected in 1998, and before I was even sworn in, which would have taken place in 1999, I was asked to join the Senators and House Members, both Democrats and Republicans, who were going to the White House Conference on Social Security. There were 24 Senators and 24 House Members, and I was included as one of the 24, even though I had not been sworn in.
I was very proud to go, too, and we came down to Washington late in November. We were told we were going to solve Social Security that year, and by the next March we would have a bill to take to the House floor and to the Senate floor and we would do it early because this would be the first of the 106th Congress and we would have 3 months to do this. It would be before all of the election talks started, and we would be working together. I do think that Social Security reform needs to be bipartisan, and we are going to have to reach that in this debate at some time before we can find really meaningful reform.
What happened is we came down for 3 days to this great conference. We had speakers the first days and learned a lot about Social Security and reinforced what we had believed. Then the third day, we met with President Clinton. We sat over at Blair House, and we talked about how we were going to do this bill, who was going to do this bill, who would be the one to put it on the table.
The President said, I will do the bill and I will have it ready for you the end of December. There was a pause in my mind, because this is the one time that as an elected official you really have time to spend with your family, between Christmas and New Year's. I thought how am I going to go home and tell my family that I will have to be gone at that time, when we usually have taken our vacation, but for the good of the country, I will do this.
So I went home and then came back to Washington for orientation meetings as a freshman, and I asked one of my colleagues who I had worked with during this 3-day conference, Does the President have the bill ready yet; I have not received a time yet that we will be coming back. My colleague looked at me and said, Judy, are you naive? There is not going to be any bill. This has been a great PR campaign but nothing has been done yet. It is very difficult for somebody to come up with a bill, and the President is not working on it.
That was the last I ever heard of the Social Security reform for 1998. We are still working on it, and just a couple of other things.
Since 1935, this has been a pay-as-you-go system, and I always believed when I first started talking about Social Security that there was a little box that had my name on it and it had my benefits for when I retired. That is not true. We might talk about a trust fund, but this has been a pay-as-you-go system, and in fact the Federal Government cannot hold money like that in a bank account. So we have to deal with Treasury notes, and that is what we do now. That is what we have done.
I am here this evening because I think if the debate goes further than whether or not we are going to implement personal accounts or raise the retirement age or have a pot of money there that we are going to be able to pay back now, and I think in the heat of debate that people fail to address the current inequities in this system that does single out one group of Americans, and the fact is that women, more than anyone else, continue to draw the short straw when it comes to Social Security benefits.
Right now, too many women who reach retirement age find themselves widowed or single, relying on their Social Security check for over half of their income. Women live an average of 5\1/2\ years longer than men, and consequently, they disproportionately rely on Social Security for their entire retirement income.
I can remember going door to door and going to the house of a woman who must have been about 95 at the time. She had been living on her Social Security check, which really did not give her even the money to be able to pay her rent and to be able to buy her food and such for a long retirement.
It is great that people are living longer, and this is what we want, but our Social Security system was not set up for that. It was set up at a time when people lived to be age 60 and the retirement age was age 65. It was easy to pay out the benefits then because there were not that many people that received them.
Now women represent 58 percent of all Social Security beneficiaries age 62 and older and approximately 70 percent of beneficiaries 85 and older, and I think these inequities are astounding.
The Social Security laws in the case of divorce are incredibly outdated. When Social Security was first created, few marriages ended in divorce. In fact, most of the women were nonworking. Fast forward to today, where the number of divorces has more than quadrupled since 1970 and under current Social Security rules must be married for at least 10 years to be entitled to the Social Security benefits of her husband, yet statistics tell us about one-third of all marriages end before 10 years has been reached. This translates into one-third of women who will receive zero Social Security benefits for those years that they were married.
We have all heard experts reference the fact that the number of divorces in our country is expected to continue rising, and almost half of marriages are expected to end in divorce. That is a pretty scary statistic, and we certainly hope that does not happen. But where does that leave women? Unfortunately, it leaves women, again, to bear the brunt of inequality.
We, as women, have fought for equal opportunity in the workforce for many years. Today, women have proudly gained a strong presence in the workforce. Now more women than ever are doctors, lawyers, CEOs, scientists, engineers and politicians, to name a few.
However, the current Social Security system continues to punish these working women. Our 1930s-style retirement system has led to an astonishing two-thirds of married women who do not receive additional benefits from their Social Security contributions. And when it comes to single- and dual-earner couples with identical incomes, the single- earner couple stands to receive the higher benefit.
Let me cite the Smiths and the Joneses. The Smiths have an income only from the husband of $3,000. The Joneses have an income of $3,000; but the husband earns $1,500 and the wife earns $1,500. What happens is only the higher income is considered for retirement. So if Mrs. Smith is widowed, she would received $3,000. And Mrs. Jones, if she is widowed, she receives the $1,500, not both of those incomes.
And worst of all, the family of a single woman who dies before retirement age will not get back a single dollar from the Social Security system regardless of how much money she contributed to the system over the course of her working years. Widow benefits also favor single-earner households over dual-earner households, unnecessarily penalizing a woman who has chosen a life in the workforce and makes less than her spouse.
A widow is eligible for the greater of her husband's work benefit or her own, not both. And this translates into a potential cut in household income up to one-half after her husband's death.
So women here tonight stand together to call for changes to the system, changes that will ensure equal treatment for women under the law. The status quo of Social Security in this Nation today is unacceptable.
But in addition to all of the overall reforms, we need to encourage women from a young age to establish financial security and a sound plan for retirement. That is one of the reasons we have formed the Financial and Economic Literacy Caucus to promote financial and economic education. Women should be afforded the opportunities to learn the skills necessary to guide their financial futures and successfully manage their finances.
Surveys show that girls are less likely than boys to consider themselves very knowledgeable or confident about money management. In the United States, we live under the idea that all men are created equal; yet within the Social Security system, all men and women are not treated as equal. We need to work together to establish a system that creates equity among all Americans, individuals, men, women, divorced or widow; and we should not wait to do it until 2041 when we are faced with a largely depleted Social Security. So let us prepare for the future now. I urge all of my colleagues on both sides of the aisle to work together to help American women achieve financial certainty and equality. We must support the changes to the Social Security system to bring it into a new millennium so women, and all Americans, are not left financially unequipped, but are financially secure. I thank the gentlewoman from Florida (Ms. Ginny Brown-Waite) for leading this Special Order tonight.