Social Security Legislation Introduced; Floor Vote on Privatization Challenged
A bipartisan bill that would make a number of technical changes to the Social Security system that would benefit widows and divorced spouses, the Social Security Benefit Enhancements Act for Women of 2002, will soon be introduced. The legislation would update benefit eligibility requirements, resulting in higher benefits and expanded eligibility for elderly and disabled widows and divorced spouses, who are among the poorest of elderly persons. According to Rep. Robert Matsui, ranking Democrat on the House Ways and Means Social Security Subcommittee, the bill would:
- Increase the unfair benefit limit on widows whose spouses both retire and die before the full retirement age;
- Update eligibility requirements for disabled widows to ensure consistency with earnings requirements in current law; and,
- Eliminate a needless two-year wait for some divorced spouses to receive benefits.
About 120,000 women would see their benefits improved if this bill were to become law. Analysts say that the cost of the change would amount to about one billion for the near term, but over the long term the fiscal impact would be negligible.
Although the legislation does not provide for all of the improvements that NOW would like to see made to the system (as recommended by NOW and numerous national women's organizations represented by the National Council of Women's Organizations Airlie House Report, 1999), it is a small step in the right direction.
At the same time, Rep. Matsui and the Democratic leadership are challenging House Republican leadership to take their privatization legislation to the floor for an up or down vote. Democratic strategists believe that the Republicans could not win even in a Republican controlled chamber because none of the privatization schemes "add up." That is, the calculations that are made with regard to transition costs to a privatized investment account system and the long-term projections about earnings to beneficiaries cannot be satisfactorily substantiated.
Rep. Matsui has even introduced legislation embracing the three privatization options recommended by George W. Bush's phony Social Security Commission, with the promise that he will get them on the House calendar. Those options would dramatically reduce benefits to Social Security recipients, require trillions of dollars in general revenues as well as Social Security payroll tax contributions to fund the transition. Rep. Dick Armey has vowed to get a privatization bill voted out of the House sometime this spring; the course of action on Social Security privatization in the Senate is less clear. Reports are that Sen. Max Baucus, who as chair of the Senate Finance Committee, has the most to say about Social Security legislation is believed to not favor taking up the issue this year.
Welfare Reauthorization Taken Up by the House
Hearings on the Temporary Assistance to Needy Families program and related welfare issues have been underway since the beginning of the 107th Congress. The House Republican leadership has promised to get a bill to a floor vote in April or May. A detailed analysis of the varying pieces of legislation will soon appear on the NOW website; in addition, a series of principles under which any revision to the current system is made has been prepared by the National Council of Women's Organizations Economic Security Task Force and backed by the NCWO's Domestic Agenda Task Force, co-chaired by NOW Vice PresidentMembership Terry O'Neill. These principles assure that poor women first receive the training and education that they require before being able to sustain economic self-sufficiency. In addition, the principles stress the need for greatly expanded child care, housing, health care, transportation and anti-violence services.
NOW and many other women's rights organizations are backing legislation sponsored by Rep. Patsy Mink, (H.R. 3113), The TANF Reauthorization Act of 2001, that would reward states for education, training and other services that improve women's chances of self-sufficiency instead of simply mandating that they get a job within a limited period of time. More information about H.R. 3113 and competing bills will be posted on the NOW website.
This Legislative Update was compiled by the Government Relations/Public Policy Team at the National NOW Office. Call Jan Erickson, Government Relations Director, at (202) 628-8669, ext. 101, if you have any questions. To receive free of charge copies of any of the above bills, call your U.S. Senator or Representative at (202) 224-3121 or connect to http://thomas.loc.gov. This update is mailed monthly to NOW leadership; any member can receive the update for a yearly charge of $25 or you can read it on the NOW website. It is also sent to the NOW Action Alert email network and anyone may subscribe by sending the message to "subscribe now-action-list" (without the quote marks) to majordomo@now.org.