[Congressional Record Volume 142, Number 136 (Friday, September 27, 1996)]
[Extensions of Remarks]
[Page E1758]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     INTRODUCTION OF COMPREHENSIVE WOMEN'S PENSIONS PROTECTION ACT

                                 ______
                                 

                        HON. BARBARA B. KENNELLY

                             of connecticut

                    in the house of representatives

                      Thursday, September 26, 1996

  Mrs. KENNELLY. Mr. Speaker, we are here this morning to announce the 
introduction of the comprehensive women's pension bill of 1996.
  While Republicans spent the 104th Congress trying to deny working 
American families $40 billion of their hard earned pension money by 
allowing employers to raid pension plans, Democrats beat back these 
attempts and worked to ensure that working Americans, particularly 
women, get the benefits to which they are entitled.
  For instance, President Clinton recently signed into law legislation 
I have championed since 1986 which reduces the vesting period--the 
period you must work before become entitled to a pension--from 10 to 5 
years for multiemployer plans. The moment President Clinton put his 
signature on the bill, 1 million Americans became entitled to a 
pension. But there is much more work to be done, particularly for the 
women of America.
  For instance, less than one-third of all women retirees over age 55 
receive pension benefits compared to 55 percent of male retirees. Yet 
the typical American woman who retires can expect to live approximately 
19 years. Sadly, over one-third of elderly women living alone live 
below the poverty line and three-fifths live within 150 percent of the 
poverty line. Women's pension benefits depend on several factors 
including: participation in the work force, lifetime earnings relative 
to those of current or former husbands, and marital history.
  There has been a long-term trend toward greater labor market 
participation by women. In 1940, only 28 percent of all women worked 
and less than 15 percent of married women worked. By 1993, almost 60 
percent of all women worked and married women were slightly more likely 
than other women to be working. The growth of women in the work force 
is even more pronounced for women in their prime earning years--ages 25 
to 54. The labor force participation rate for these women increased 
from 42 percent in 1960 to 75 percent in 1993. For married women in 
this age bracket labor force participation increased from 35 percent in 
1960 to 72 percent in 1993.
  Not only are more women working, they are staying in the work force 
longer. For instance, 19 percent of married women with children under 
age 6 worked in 1960; by 1993, 60 percent of these women were in the 
work force. Similarly, 39 percent of married women with children 
between the ages of 6 and 17 were in the work force in 1960 and by 
1993, fully 75 percent of these women were in the work force.
  Women's median year-round, full-time covered earnings were a 
relatively constant 60 percent of men's earnings until about 1980. 
Since that time, women's earnings have risen to roughly 70 percent of 
men's. This increase will, in time, increase pension benefits for women 
although this change will be slow because benefits are based on average 
earnings over a lifetime.
  A woman's martial status at retirement is also a critical factor in 
determining benefits. The Social Security Administration projects that 
the proportion of women aged 65 to 69 who are married will remain 
relatively constant over the next 25 years, and that the proportion who 
are divorced will more than double over this period. There are 
tremendous inequities in the law with respect to the pension of a widow 
or divorced spouse. For instance, only about 54 percent of married 
private pension plan recipients have selected a joint and survivor 
option, which, in the event of their death, will continue to provide 
benefits to their spouse.
  The face of women in America today has changed; it's time our pension 
laws recognize those changes. The bill before us today does just that. 
A number of us have been active in this area. We have been successful 
in getting small pieces enacted. And today, we pledge to work together 
in the next Congress to update our pension laws for the women of 
America.

                          ____________________