Women and Social Security :: Institute for Women's Policy Research

The Women and Social Security Email Alert provides women-oriented information on and analysis of proposed changes in Social Security, up-to-date developments in the debate, and current research and statistics. The Alert also includes announcements of key activities on Social Security, especially those of special interest to women. This e-mail Alert is part of IWPR’s mission to keep women’s concerns at the center of current policy debates.

Washington Scene

President Bush Proposes Social Security Benefit Cuts for Middle-Class Workers
Senate Finance Committee Hearings

Social Security Rally

Recent Report & Polls
AARP Report: The State of 50+ America 2005
Washington Post/ABC News Polls

Upcoming Events
National Forum on Women and Social Security—May 10, 2005
Town Hall Meetings on Women and Social Security—May 20 and May 23, 2005
“Social Security Matters” Campaign—May 7 and May 16, 2005

President Bush Proposes Social Security Benefit Cuts for Middle-Class Workers

At a news conference on April 28, President Bush made it clear that his proposal for Social Security reform would include private investment accounts to be established by diverting current payroll taxes. To fix a long-term financing problem in current Social Security, he endorsed a proposal for benefit cuts, known as “progressive price indexing,” rather than possibilities of raising taxes or removing the earnings cap. Progressive price indexing would involve changes in the way Social Security benefits are calculated: it would introduce larger benefit cuts for middle- and higher-income workers over time compared to the current formula, while keeping the current benefit formula for low-income workers (about 30 percent of all workers).

For an average worker who earns about $36,500 in today’s dollars, this proposal would mean $3,523 less benefit a year upon retirement in 2045 (a 16 percent benefit cut) and $7,629 less in 2075 (a 28 percent cut), compared with current law. For workers making above the average wage, the proposal would translate into deeper benefit cuts: someone who earns about $58,400 today would face benefit cuts by 25 percent upon retirement in 2045 and by 42 percent in 2075. According to many experts, by reducing benefits at the middle and top, progressive price indexing would transform the current Social Security system from a social insurance program which all workers get fair payments for their taxes paid into a welfare program where nearly everyone receives only a minimum benefit.

On April 26, the Senate Finance Committee held its first hearing over the future of Social Security, including the President’s proposal for privatization (“GOP May Be Splintering on Social Security” Washington Post, April 26, 2005). The panelists included Robert Pozen (MFS Investment Management), Michael Tanner (Cato Institute), Peter Ferrara (Institute for Policy Innovation), Peter R. Orszag (Brookings Institution), and Joan Entmacher (National Women's Law Center). To read the full transcript, go to United States Senate Committee on Finance. The House will begin hearings on Social Security on May 12.

On April 26, Americans United to Protect Social Security led a national day of action against privatization by holding rallies and other events in more than 30 states, including Washington, DC. This date marked the end of President Bush’s 60-day national tour to promote privatization, and also coincided with the Senate Finance Committee’s first hearing on Social Security. About 3,500 people attended the rally on Capital Hill, and James Roosevelt, Jr., the grandson of FDR brought nearly 120 members of Congress both from the House and the Senate to the rally, displaying their unity against Social Security privatization. Speakers included House Democratic Leader Nancy Pelosi (CA), Senate Democratic Leader Harry Reid (NV), Rep. Charles Rangel (NY), Kim Gandy of NOW, and many others.

AARP Report: The State of 50 + America 2005

AARP’s recently released study, The State of 50+ America 2005 (http://www.aarp.org/research/reference/agingtrends/fifty_plus_2005.html), surveys the health and welfare of America’s 50+ population, and shows an increased reliance on Social Security over the past decade. The report also shows that more and more older Americans are holding down jobs to maintain their income. Increased labor force participation is shown for both those aged 50 to 64 (from 65 percent to 70 percent in 1993-2003) and those aged 65 to 74 (from 17 percent to 23 percent); this trend is primarily due to growing numbers of middle-aged and older women remaining in or entering the labor force.

Despite President Bush’s 60-day campaign to promote his Social Security privatization plan, polls continue to show declining support for his plan. A recent poll by ABC News–Washington Post shows that nearly two-thirds of Americans (64 percent) now disapprove of Bush’s handling of Social Security, up from 56 percent in March (“Bush Extends Social Security Tour as Support in Polls Dwindles” Bloomberg, April 26, 2005)

Members of Congress and experts from the National Council of Women’s Organizations (NCWO) will hold an important forum on Capital Hill on Tuesday, May 10th from 10:30 – 12pm to discuss the impact of Social Security privatization on women. Members of Congress participating in the event include Representatives Nancy Pelosi (D-CA), Hilda Solis (D-CA), Lois Capps (D-CA), Stephanie Tubbs-Jones (D-OH), and Sander Levin (D-MI). Barbara Kennelly of the National Committee to Preserve Social Security and Medicare will also participate. The list of panels and discussants include:

Panel 1: Children and Families
Joan Entmacher, National Women's Law Center
Jodi Grant, National Partnership for Women and Families
Cherie Brown, YWCA of Oklahoma City
Panel 2: Women and the Workforce
Maya Rockeymoore, Congressional Black Caucus Foundation
Nancy Hulbert, Business and Professional Women/USA

The hearing will take place on Tuesday, May 10, at the Rayburn House Building, Room 2557, from 10:30-12 noon.

Town hall meetings are being planned to discuss Social Security with women members of Congress and other women leaders, organized by the National Council of Women’s Organizations (NCWO). The meetings will take place on May 20 and May 23. For more information, contact Christopher Turman at NCWO christopherturman@hotmail.com.

The Older Women’s League (OWL) continues to host community forums on Women and Social Security around the country this month. One forum will be held in Ft. Lauderdale, FL with Rep. Debbie Wasserman Schultz on Monday, May 7, and another event in Sacramento, CA with Rep. Doris Ma tsui on Monday, May 16. For more information, contact OWL at 800-825-3695 or info@owl-national.org.