[Congressional Record Volume 145, Number 42 (Wednesday, March 17, 1999)]
[House]
[Pages H1403-H1404]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          SOCIAL SECURITY AND ITS IMPORTANT BENEFITS TO WOMEN

  The SPEAKER pro tempore (Mr. Ose). Under a previous order of the 
House, the gentlewoman from New York (Mrs. Maloney) is recognized for 5 
minutes.
  Mrs. MALONEY of New York. Mr. Speaker, Social Security is this 
Nation's foremost family protection plan. As the 106th Congress 
considers proposals to reform the current Social Security system, it is 
critical that we take the different circumstances of women into 
account.
  I have several examples of women that have faced problems in their 
elder years and have relied heavily on Social Security. I am just going 
to put them in the Record. But I would like to point out that women 
earn less than men. For every dollar men earn, women earn 74 cents, 
which translates into lower Social Security benefits. In fact, women 
earn an average of $250,000 less per lifetime than men, considerably 
less to save or invest in retirement.
  Women are half as likely than men to receive a pension. Twenty 
percent of women versus 47 percent of men over age 65 receive pensions. 
Further, the average pension income for older women is $2,682 annually 
compared to $5,731 for men.
  Women do not spend as much time in the workforce as men. In 1996, 74 
percent of men between the ages of 25 and 44 were employed full time, 
compared to 49 percent of women in that age group.
  Women spend more time out of the paid workforce than men do in order 
to raise families and take care of aging parents, and this is reflected 
in their Social Security payments. Women live longer than men by an 
average of 7 years. Social Security benefits are the only source of 
income for many elderly women. Twenty-five percent of unmarried women, 
widowed, divorced, separated or never married, rely totally on Social 
Security benefits as their only source of income.
  Not only will these women find themselves widowed, they are likely to 
be poor. A recent report by the General Accounting Office showed that 
80 percent of women living in poverty were not poor before their 
husbands died. The financial outlook for elderly women is pretty grim. 
The poverty rate among elderly women would be much higher if they did 
not have Social Security benefits.
  In 1997, the poverty rate among elderly women was 13.1 percent. 
Without Social Security benefits, it would have been 52.2 percent. For 
elderly men the poverty rate is much lower at 7 percent. If men did not 
have Social Security benefits, the poverty level among them would 
increase to 40.7 percent.
  Social Security's family protection provisions help women the most. 
Social Security provides guaranteed inflation protection, lifetime 
benefits for widows, divorced women, and the lives of retired workers. 
Mr. Speaker, 63 percent of female Social Security beneficiaries aged 65 
and over receive benefits based on their husband's earning records, 
while only 1.2 percent of male beneficiaries receive benefits based on 
their wive's earning records. These benefits offset the wage disparity 
between women and men.
  Mr. Speaker, as we move forward with reform of our Nation's Social 
Security system, we must remember that women face special challenges. 
It is my hope that many of the contributing economic factors, such as 
pay inequity, will soon be eliminated. In the meantime, Congress must 
take the economic well-being and security of women into account when 
discussing reform.
  Women are clearly at a disadvantage when facing retirement, and poor, 
elderly women have the most at stake in the Social Security debate. Any 
reform that is enacted must keep the safety net intact. Our mothers, 
our daughters and our granddaughters are counting on us.
  Mr. Speaker, I have additional documents that I will submit for the 
Record at this time.
  Social Security is this nation's foremost family protection plan. As 
the 106th Congress considers proposals to reform the current Social 
Security system, it is critical that we take the different 
circumstances of women into account.
  Lucy Thomas' story illustrates many of the key issues.
  Mrs. Thomas is 83 years old. She worked for 35 years as a waitress, 
earning less than minimum wage. At the same time, she reared two 
daughters, and cared for both her father as he became increasingly 
disabled with rheumatoid arthritis, and for her grandmother, a farm 
woman who had virtually no income. She now depends solely on Social 
Security--$650 a month. At age 71, she moved in with her daughter, 
Marilyn, because she could no longer work outside the home to 
supplement her Social Security income.
  As a waitress and a bartender, Thomas and her husband barely made 
enough money to pay for their daily living expenses. Mrs. Thomas does 
not have a pension, nor does she have income-generating savings. Her 
current income consists of about $8,000 a year from Social Security. 
She is one of the nation's elderly poor. Of that amount, $1,600 is used 
for secondary health coverage. Last year she paid an additional $1,000 
in medical costs and another $1,400 for a hearing aid. In the fall, a 
bout with stomach ulcers forced her to pay over $200 for prescription 
drugs. Her daughter purchased most of her clothing and paid for her 
room and board for the past 12 years. Social Security is a real factor 
in her ability to survive with some dignity in her old age.
  Mrs. Thomas' story is not unique. Many women come to rely heavily on 
the Social Security System when they retire, for a number of reasons:
  Women earn less than men. For every dollar men earn, women earn 74 
cents, which translates into lower Social Security benefits. In fact, 
women earn an average of $250,000 less per lifetime than men--
considerably less to save or invest in retirement.
  Women are half as likely than men to receive a pension. Twenty 
percent of women versus 47 percent of men over age 65 receive pensions. 
Further, the average pension income for older women is $2,682 annually, 
compared to $5,731 for men.
  Women do not spend as much time in the workforce as men. In 1996, 74 
percent of men between the ages of 25 and

[[Page H1404]]

44 were employed full-time, compared to 49 percent of women in that age 
group. Women spend more time out of the paid work force than do men in 
order to raise families and take care of aging parents.
  Women live longer than men by an average of seven years. Social 
Security benefits are the only source of income for many elderly women. 
Twenty five percent of unmarried women (widowed, divorced, separated, 
or never married) rely on Social Security benefits as their only source 
of income. Not only will these women find themselves widowed, they are 
likely to be poor. A recent report by the General Accounting Office 
(GAO) showed that 80 percent of women living in poverty were not poor 
before their husbands died.
  The financial outlook for elderly women is pretty grim. They poverty 
rate among elderly women would be much higher if they did not have 
Social Security benefits. In 1997, the poverty rate among elderly women 
was 13.1 percent. Without Social Security benefits it would have been 
52.2 percent. For elderly men, the poverty rate is much lower, at 7 
percent. If men did not have Social Security benefits, the poverty 
level among them would increase to 40.7 percent.
  Social Security's family protection provisions help women the most. 
Social Security provides guaranteed, inflation-protected, lifetime 
benefits for widows, divorced women, and the wives of retired workers. 
Sixty three percent of female Social Security beneficiaries age 65 and 
over receive benefits based on their husbands earning records, while 
only 1.2 percent of male beneficiaries receive benefits based on their 
wives' earning records. These benefits offset the wage disparity 
between women and men.
  As we move forward with reform of our nation's Social Security 
system, we must remember that women face special challenges. It is my 
hope that many of the contributing economic factors--particularly pay 
inequity--will soon be eliminated. In the meantime, Congress must take 
the economic well-being and security of women into account when 
discussing reform.
  Women clearly are at a disadvantage when facing retirement. And poor, 
elderly women have the most at stake in the Social Security debate. Any 
reform that is enacted must keep the safety net intact. Our mothers, 
our daughters, and our granddaughters are counting on us.

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