[Congressional Record Volume 148, Number 56 (Tuesday, May 7, 2002)]
[Extensions of Remarks]
[Pages E736-E737]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       THE SOCIAL SECURITY WIDOW'S BENEFIT GUARANTEE ACT OF 2002

                                 ______
                                 

                         HON. ROBERT T. MATSUI

                             of california

                    in the house of representatives

                          Tuesday, May 7, 2002

  Mr. MATSUI. Mr. Speaker, today I am offering a bill to make long 
overdue improvements in Social Security benefits. My bill would provide 
higher benefits for an estimated 5 million widows and other elderly 
beneficiaries. At the same time, it maintains fiscal responsibility by 
assuring that the bill does not affect the financial solvency of the 
Social Security system.
  Elderly non-married women, including widows, rely heavily on Social 
Security benefits. Three out of four depend on it for at least half of 
their total income. And four in 10 depend on it for 90 percent or more 
of their income.
  At the same time, widows are among the poorest of all Social Security 
beneficiaries. Over the last 30 years, poverty rates among the elderly 
have fallen from 29 percent in 1966 to 8.5 percent in 2000. But among 
widows, the poverty rate remains high--at 15 percent in 2000. The 
incomes of elderly women are very modest. The median income for non-
married elderly women, including widows, was about $12,000 a year in 
2000.
  The time to address this situation is now. Republicans want to spend 
trillions of dollars to privatize Social Security, and they want to 
wait until after the election to do it. Democrats are proposing to 
invest less than one-twentieth of that amount to improve benefits for 
the neediest beneficiaries, and we want to do it now, without delay. 
Democrats want to improve Social Security and help its neediest 
beneficiaries, rather than destroy it by risky privatization schemes 
that require trillions of new dollars and deep benefit cuts.


                              Bill Summary

  The bill would create a new ``widow's guarantee'' for Social Security 
beneficiaries. Widows and widowers would be guaranteed a

[[Page E737]]

benefit equal to 75% of the combined benefits the couple had been 
receiving prior to the death of one spouse.
  The widow's guarantee would provide higher benefits than widows 
receive under current law--which only provides benefits equal to what 
the husband had been receiving prior to his death. Under current law, 
widows are effectively limited to only 50-67 percent of what the couple 
had been receiving. Yet under federal guidelines, a one-person 
household is estimated to need 80 percent of the income of a two-person 
household. This bill would reduce the drop in Social Security income 
that would otherwise occur upon the death of a spouse.
  For example, the average retired worker on the rolls today receives a 
benefit of $874 per month. If that worker has a spouse who is entitled 
to Social Security spousal benefits, their combined benefit is $1311. 
Under current law, the widow would receive $874 after her husband dies. 
Under the 75% widow's guarantee, the widow would get a benefit of $983 
a month--an increase of $109 a month, or 12 percent more than she would 
receive under current law.
  To assure that the increased benefits are concentrated on those with 
the greatest need, the increase would be subject to a dollar cap of 
$1000 a month, which would be indexed in 2003 and later years.
  The benefit increase is estimated to help 5 million widows and 
widowers, one million of whom are currently living in poverty.
  This bill also includes benefit improvements to help certain groups 
of disabled widows, elderly widows whose husbands died shortly after 
retirement, and divorced spouses. Over 120,000 beneficiaries would see 
increases as a result of this section of the bill.
  Finally, this is fully financed through general revenue transfers to 
Social Security. This makes the Trust Funds whole for the cost of these 
vital benefit improvements.
  This legislation promotes the needs of our poorest and most 
vulnerable elderly. It improves and strengthens Social Security's 
guaranteed, dependable monthly income. It assures that widows and 
widowers will have at least a minimally decent standard of living in 
old-age. I am pleased to introduce the Social Security Widow's Benefit 
Guarantee Act.

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