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Contact Congress:
Pension Bill Aids Spouses, but May Attack Social Security
Action Needed:
Please send a message TODAY to your senators and representative about critical pension legislation that is moving very quickly through Congress. These pension improvements will benefit many women, but we are concerned that Congress may use this legislation to sneak though a partial privatization of Social Security, which would reduce benefits and make the program less stable.
Urge your Congress members to SUPPORT these important pension reforms while OPPOSING any effort to add Social Security "private accounts" to this pension bill. Please do take action as soon as possible.
Background:
Oppose Private Investment Accounts - Rumors have been circulating for some time that the House Republican leadership will use this legislation to sneak through private accounts under Social Security. So while we want Congress to know that we support pension reform - WE DO NOT SUPPORT PRIVATE INVESTMENT ACCOUNTS AS PART OF SOCIAL SECURITY. NOW and hundreds of other progressive organizations are firmly opposed to ANY form of private retirement investment accounts carved out of Social Security funding as this would make the program less solvent and reduce benefits.
Women Need a Fair Share of Spouses' Pensions - Many women rely heavily on their spouses' pension benefits, but some pension plans contain rules that leave women disadvantaged or shortchanged after a divorce. Activists are pressing for five new spousal pension protections, and last week Senate committees reached a final agreement on a combined pension bill. Unfortunately, the new bill has included only three of the five protections. That bill is expected to go to the Senate floor today or Friday (Oct. 6 or 7) or the following week.
According to an analysis by the National Women's Law Center (NWLC), of the three provisions that stayed in the bill: two provisions would remove barriers that now prevent some former spouses of Railroad Retirement employees from receiving pension benefits even though they have been awarded by a divorce court. The third provision would help at least some divorced spouses who lose out on a share of their spouse's pension, either because they had no lawyer or because their lawyer was not knowledgeable about dealing with pensions.
The two protections that were dropped are more complicated, but important nonetheless: The first authorizes a study of whether to require spousal benefits (or a waiver by the spouse) in defined contribution plans (as currently exists in defined benefit pension plans), which would close a significant loophole. The second would give retirees the opportunity to choose better protection for the surviving spouse, by requiring that at least two different annuity options be available. Both of these provisions could be added back when the bill goes to the floor.
All Five Provisions Have Bipartisan Support - First introduced in 2002 as the Women's Pension Protection Act (S.2707), this legislation was intended to correct numerous inequities in pension requirements - inequities that have kept many older women poor. The five spousal protection features under discussion were drawn from that early bill into a broader bipartisan proposal sponsored by Sens. Olympia Snowe (R- Maine), Ted Kennedy (D-Mass.) and others. Both in the 108th Congress and in the current session, all five provisions were approved by the Finance Committee. All five provisions make important and long-needed improvements in the rights of women to share in their spouse's pension.
Take Action NOW!
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