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Aboutt O ing Organizations
THE CENTER FOR COMMUNITY CHANGE
The mission of the Center for Community Change (CCC)is to build the power and capacity of
love-income people,especially ION-'-income people of color,to have a significant impact on improving
their communities and the policies and institutions that affect their lives. CCC strengthens,con-
nects,and mobilizes grassroots groups to enhance their leadership,voices,and power.V/e believe
that vibrant conununity-based organizations,led by the people most affected by social and economic
injustice,are key to creating social change. Support for the Center's work and for the development of.
this guide was generously provided by the Ford Foundation.The Campaign for Community Change
is the Center's advocacy arm. Its work on Social Security has been generously supported by The
Atlantic Philanthropies.
OLDER 0 E 'S ECONOMIC SECURITYTASK FORCE
In the fall of 1998, the National Council of Women's Organizations (NCyk'O) formed an Older
Women's Economic Security(OWES)Task Force to address the critical issue of Social Security
reform and to help policy makers understand women's stake in this crucial issue.The Task Force has
worked with all NCWO members to carry out a public education campaign to reach women across
the country,and to urge them to let their representatives and candidates know their views on Social
Security reform.Task Force members work in coalition(with labor unions,senior groups,youth
advocates,disability rights groups,and civil rights organizations)to ensure the programs continued
solvency and to improve Social Security for women and other vulnerable people by putting benefit
improvements back on the public agenda.The following organizations are all supporting members
of the OWES'Task Force:
9to5 National Council of Jewish Women
American Association of University Women National Council of Negro Women
Black Women's Health Imperative National Gay and Lesbian Task Force
Business and Professional y''omen's Foundation National Organization for Women(NONNO
The Center for Advancement of Public Policy Foundation
Dialogue on Diversity National Partnership for Women and Families
Clearinghouse on Women's Issues National Women'-Law Center
Feminist'L\Iajor7ity Organization of Chinese American Women
Hadassah The-U.S.Women's Chamber of Commerce
Institute for Women's Policy Research OWL-The Voice of illidlife and Older Women
Jewish Women International Wider Opportunities for Women
NNL;�NA National Latina Organization Women's Actions for New Directions
National Alliance for Caregiving Vlomen's Institute for A Secure Retirement
National Association for Female Executives Women's Research&Education Institute
National Association of Mothers'Centers YAYVA
National Committee to Preserve Social Security
and-Medicare
Acknowledgements
CCC would like to thank all of the current and former staff members who worked on this report,
including Theodora Gibbs-Plessl,Conor XfcGovern,Sheva Diagne,Theron Guzoto,Allegra Baider,
and Steve Savner. CCC would also like to thank XIary Dailey and the entire Retirement Security team
for their valuable feedback and assistance.
O\XIS would like to thank Heidi Hartmann,President,Institute for`Uomen's Policy Research
(IZX/PR);Jeff Hayes,Study Director,IWPR;Elyse Sha«,Special Assistant to the President,INX'PR;
and Amy Wazlawik,National Academy of Social Insurance Summer Intern at IXX/PR,for their contri-
butions to drafting this white paper. ONX•rES would also like to thank Terry O'Neil,President,Na-
tional Organization for`XTomen(NOW)Foundation,and Jan Erickson,Director of Programs,NOW,
for their timely input.
OtiX'ES and CCC are very appreciative to three experts who revie-wed the draft report,Virginia
Reno (National Academy of Social Insurance),Joan Entmacher(National Women's La,\v Center),and
Nancy Altman (Social Security Works),for their extremely helpful comments and suggestions.
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IN
TRODUCTION —
THE IMPORTANCE OF SOCIAL SECURITY TO
. FINANCIALLY VULNERABLE POPULATIONS......... ......... ........-------------------2
Womenand Social Secu/ity—................................................................................. .................. ......... '3
[kx�SocJcL/Sr.cu/�Zlj 151 mo� How/Do*x !tN/ork?..... —..... ---............. --....... -------4
People of Color and Social Security........ ......... ...... — ...........— ..........—...... ...... ----........ —'f,
LGBTand Social Security...............--........... .......--.................................................... ....................
PROPOSED IMPROVEMENTS..... -- ..............----.......... ...... ------------------9
Adda Caregiver Cnadit— ...... ..........---...... .............. ....... ............---..............---........ ---'9
]0
RestoreStudent Benefits.... .......— ......... ....................... ------ ............ .............. ........ ..........13
�harkjeJons�............—........ ...... .................. ........ ----...... ... ----�----- .........
— 4
Ensure Benefits Accurately Reflect the True Cost of Living for Seniors -------------16
R�� Lobe��/----------------------------�---------------.|7
Increase the Special Minimum Benefit .......... ........—......----........... ....... —......— ........ .......18
HatbeKK0k�s—� ---� ----------------' ------- ------. --' --. —'1�
Provide Eoue|Accoon6n U�BTFami|�m
' ------------------------------'21
' 0bun*'-� n /en�oy........... ............... ....................................... ... ............... .......
-------2l
PAYING FOR IMPROVEMENTS, HELPING TOSOLVE SOLVENCY ISSUES................................22
Make Sure Everyone Pays o Fair Share of Social Security Contributions............ ............ ...............22
Achieve Full Employment and Broadly Shared Prosperity............................. — ............ — ............ 3
Enact Comprehensive Immigration Reform...................................... ................... .......... ..................23
AdditionalRevenue Sources ................................................................................................................
C{]NCLUSkON— .... ---- ........... ........ .......--............................ — ............ ........--- ....... ...
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Introduction
Our:Social Security system has been and contin- Security is especially important. Social Security-
Lies to be vitally important to the economic se- provides nearly two-thirds of retired work-
curity of millions of workers and their families, ers with 50 percent or more of their income.'
with approximately 57 million Americans receiv- Benefits lifted more than 15.3 million men and
ing$67 billion in benefits in July 2013.'As seen women of retirement age above the poverty line
in Figure 1,nearly 70 percent of these beneficia- in 2012.3
ries are retired workers and their families. Social Social Security's role in ensuring economic
Security also provides essential life insurance security has become even more important in the
and disability protection,with disabled workers last few years,as many Americans find them-
and their families and the survivors of deceased selves dealing with the aftereffects of an eco-
workers making up the remauung 30 percent of nomic recession that devastated their retirement
beneficiaries.Women and children constitute the savings and the value of their homes.Despite
majority(59 percent) of beneficiaries. this turn of events,some politicians continue
Social Security goes to nearly*95 percent of to advance proposals that would reduce.Social
Americans 65 and older and is the bedrock of Security benefits and weaken the program,even
retirement security for all Americans. Our Social as so many families rely on it so heavily.One
Security system is also extremely reliable;since proposal that has gotten significant attention re-
it was created,Social Security has never missed cently is adopting the Chained Consumer Price
a payment.For low-income retirees,Social Index for.all Urban Consumers,also known
FIGURE 1: SOCIAL SECURITY BENEFICIARIES, DECEMBER 2012
Payment Status Men,Women, and Children
04
d ^t.
•
So€.:rce:Social Security Administration.2013.Beneficiary Data:Number of Social Security Beneficiaries at the End of
December 2012. http://vA,,N�.ssa.gov/cgi-bin./currentpay.cgi>
CENTER FOR COMMUNITY Ci-{ANGE&OLDER WOMEN'S ECONOMIC;SECURITY TASK FORCE 1
as the "chained CPI" to calculate annual cost seniors by: 1)increasing benefits across
of living adjustments.The chained CPI would the board;and 2)using a price index that
amount to a painful benefit cut for millions of accounts for seniors'typical purchases (the
seniors,and be particularly damaging for vulner- Consumer Price Index for the Elderly or
able seniors who are most reliant on Social Seen- CPI-E) for calculating annual cost-of-living
city.Instead of advancing proposals to cut Social adjustments.
Security benefits,noyv is the time to talk about I'roi-ide the lowest-wage earners who have,
how we can e,pand benefits and snake sure that significant work and caregiving history-with
Social Security-works even better for everyone, a guaranteed minimtun benefit tliat is at
and specifically for those who need it the most. least 125 percent of the federal poverty line.
Social Security benefits are especially im- <, Ensure that married same-sex couples and
portant to populations that experience greater domestic partners (who are committed to
economic insecurity as they age—particularly each other but do not live in states that atl-
women,people of color,and same-sex couples, low sarne-sex marriage) are entitled to the
These populations are often disadvantaged both same family benefits under Social Security-
as workers and consumers,which contributes to as married heterosexual couples.
their increased financial vulnerability in retire-
ment. Social Security,from the beginning,has These critical irnprovernents will help to
included features that partially offset the effects ensure that all workers including women,those
of workplace disadvantages.This legacy-should in same-sex couples,and low-wage earners will
be built upon by the enactment of the modest have more adequate benefits and retirement
changes proposed in this white paper. security as they age.
This paper outlines the following five key Social Security is extremely popular among
policy changes that would help to build upon Americans,who overwhelmingly favor strength-
our Social Security-system and help to make sure ening the program as opposed to cutting it.
that it functions even better for women,same- According to a recent survey,84 percent of
sex spouses,and low-income people: Americans believe the current benefit levels are
not sufficient,75 percent think we should raise
Ensure workers'retirement security is not benefits to provide a better retirement and 82
jeopardized when they must limit their time percent agree that preserving Social Security is
at their paid jobs or experience reduced necessary even if it means increasing taxes for
earnings in order to care for loved ones by all working Americans.'
creating a caregiver credit for periods of Over the past few years there have been
time when a worker,while providing care, several key reports and initiatives calling for the
has no or low earrninngs. expansion of Social Security benefits. Examples
T'. Provide the opportunity for vulnerable stu- include Phan for a Nov Fusin':The lq>act o�f'Social
dents,whose deceased,disabled,or retired Security,Reforw ore People of Color;a Report of
parents are no longer able,to support them, the Commission to Modernize Social Security;
to complete their education by restoring Breaking t13e Social Seevrzly Glues Ceikitg:-4 Proposal
benefits through age 24 for those in post to Moderlihv ll7or,,aeus Benefits,by the National
secondary education programs. Committee to Preserve Social Security and
£' lIake Social Security benefits more ac- Medicare Foundation,the National Organiza-
curately reflect the actual cost of living for lion for Women Foundation and the Institute
2 EXPANDING SOCIAL SECURITY BENEFITS FOR FINANCIALLY VULNERABLE POPULAtIONS
for'%omen's Police Research;and the National an across the board increase in benefits,providing
Academy of Social Insurance report,Strenglheaiq, benefits to same-sex couples and their families,'
Social Soeurily for Urllnewl)le Groarps.' and enhancing the special minimum benefit.' The
Several of the policy proposals I've are recom- Older N omen's Economic Security Task Force
mending to expand Social Security have already and the Center for Community Change recom-
been introduced during the 112`h and the 113`h mend that policymakers adopt these reforms u1
Congresses.They include caregiver credits,using the 113`h Congress.
the CPI-E to calculate cost of livuig adjustments,
SocialThe
ri It Importance of y to
Financially
NK%omen tend to outlive men,meaning they're
WOMEN AND SOCIAL SECURITY
living longer on less.Women who reach age 65
Although Social Security benefits are an impor- live an average of 2.1 years longer than men.''-
tant source of retirement income for all older Women also have more chronic health problems
Americans,they are particularly important to old- than men,resulting in Larger out-of-pocket health
er wounen for a number of reasons.VIotnen tend care costs and greater use of long-term care."
to have limited employment opportunities,louver Long-term care in particular can be very expen-
wages,interrupted work histories, fewer sources sive for women,due to their longevity and the
of retirement income,and longer life expec.- fact that sucli care is often not covered by lledi
tanc5 which result in their experiencing greater care and most other insurance programs."
economic insecurity during retirement.Women's Women's economic security in later life is
participation in the labor force has grown sub- also affected by family structure and marriage/
stantially, since the 1950s,yet many women still divorce patterns. Differences between women
earn less and workless over the course of then and men in life expectancy—and the fact that
lives than men."As a result,many women receive women tend to marry older men—mean that
lower wage-related Social Security benefits than more women than men will no longer be mar-
men. In 2012,the average annual Social Securitytied either by the time they reach retirement
income received by women 65 years and older age or at some time during their retirement
was 511,999,compared with$16,295 for men.' years. For the same reason women will have
Women not only earn less and receive lower fewer options regarding remariiage than men.
Social Security benefits than men;they are less marriage and divorce patterns are also chang-
likely to receive benefits from pensions as well, ing—divorce rates have increased over the
due to the occupation or industries they've past fe-,A, decades,and many adults are
worked in,the number of hours worked,the forgoing marriage altogether. In 2010, approxi-
amount of time spent out of the workforce,and mately 2%percent of then aged 65 and older
movement between jobs.!'Even when women do were unmarried (widowed,divorced, separated
have pension income,the amount is smaller than or never married),compared with nearly 57
" percent of women in the same age group."
men s.
CENTER FOR COMMUNITY CHANGE&OLDER WOMEN'S ECONOMIC SECURITY TASK FORCE 3
j
OUR SOCIAL T S I ?
j! Workers are generally eligible for Social Security benefits when they have worked under
covered employment and earned 40 quarters of coverage(now also called credits). Social
Security provides monthly benefits to qualified retired and disabled workers,their qualified
family members,and qualified survivors of deceased workers.Workers earn eligibility for
Social Security benefits by contributing to the system through mandatory contributions on
wages and salary income that are matched by employers at an equal rate.These contributions
are known by the acronym "FICA,"for the authorizing legislation,the Federal Insurance
p Contributions Act;the current FICA rate is 6.2 percent each for employers and employees,for
Social Security's old age,survivors,and disability insurance protection.The self-employed pay
the combined worker and employer FICA rate. In 2013,the earnings on which payroll taxes are
paid are limited to$113,700. Earnings above that amount are not subject to FICA.
RETIREMENT BENEFITS
Retiree worker benefits are calculated based on the 35 highest years of taxable earnings.
The benefit formula replaces a higher percentage of earnings of low earners than of high
earners.For an average worker,one earning about$40,000 a year,benefits replace about 40
percent of earnings.When workers contribute to Social Security,they earn "credits"toward
Social Security benefits.One credit is earned for a specific amount of annual wages.Workers
can earn up to a maximum of four credits per year. In2013,the value of earnings required to
earn one credit is$1,160,or$4,640 per year at four credits.This amount changes yearly with
average wage changes throughout the economy.
H The normal or full retirement age(the age when full benefits are available)is in
1,
the process of increasing in stages from 65 to 67 for workers born in 1938 or later.The full
is
retirement age is 66 for those born between 1943 and 1954,and 67 for those born in 1960 or
later.The earliest age of eligibility for retiree worker benefits remains 62;benefits are reduced if
taken before the normal retirement age.If taken at age 62,benefits will gradually decrease from
the current level of 80 percent to 70 percent of full benefits as the higher normal retirement age
is fully implemented in 2027.A Delayed Retirement Credit is added to benefits for every month
benefits are delayed,up through age 70,if retirement is postponed beyond the normal age;the
credit increases worker benefits 8 percent per year of delay.
Social Security also provides benefits to certain family members of workers who are
eligible for retirement,disability,or survivor benefits,including spouses and minor children.
Married persons(and eligible divorced spouses)receive the larger of their own retired
worker benefit or 50 percent of their(former)spouse's retired worker benefit(individuals
eligible for both their own worker benefit and benefits through a spouse are known as"dually
} entitled").In either case the benefit is reduced if taken between age 62 and normal retirement
age.To be eligible for these benefits a divorced person must have been married to a covered
1, worker for at least ten consecutive years and be currently not married.
Married(or eligible divorced)people who wait until normal retirement age may choose
to accept spousal benefits at that time and delay receiving.their own worker benefits until age
70,in order to take full advantage of Delayed Retirement Credits to their own worker benefit.
Widow(er)s(and eligible divorced spouses)are entitled to a survivor benefit equal to
the deceased(ex)spouse's retired worker benefit(if it is larger than their own retired worker
_...................---...__...-
4 EXPANIDING SOCIAL SECURITY BENEFITS FOR FINANCIALLY VULNERABLE POPULATIrI)NS
benefit).The minimum age for widow(er)s for receiving the survivor benefit is 60,but the
benefit is reduced if taken before the normal age.Widower)and surviving divorced spouse
benefits remain payable if remarriage occurs after age 60(50 if disabled).The spousal and
survivor benefits are more generous to couples with unequal earnings than to those with total
earnings that were more equally distributed between the members of the couple.A lifelong
full-time homemaker receives a spousal benefit and survivor benefit based on the spouse's
earnings,although s/he paid no contributions to receive these benefits.(It should be noted,
though,that s/he will not be protected against disability since s/he has not contributed.)A
spouse with low lifetime earnings may find that spousal benefits are larger than her or his
own worker benefit,in which case the spousal benefit will pertain,but the contributions paid
while working do not increase one's benefit over the homemakers benefit at all(though they
do provide disability insurance protection).On being widowed,surviving spouses receive the
higher of the couple's two benefits.The surviving spouse in an equal-earner couple will simply
retain his or her own benefit,and the deceased spouse's benefit will disappear.The surviving
spouse in a homemaker/single-earner couple keeps two-thirds of the couple's combined
benefits(equal to 100 percent of what the retired worker received,compared with the 150
percent the couple was receiving together).
Dependent children also receive family benefits when a parent or legal guardian retires.
DISABILITY BENEFITS
Social Security pays disability benefits to people who cannot work because they have a medi-
cal condition that is expected to last at least one year or result in death.Benefits based on
covered earnings are available for qualified disabled workers below normal retirement age.
To qualify to receive disability benefits,an individual has to meet'a strict definition of dis-
ability,as defined by statute and determined by the Social Security Administration,and must
have worked long enough—and recently enough—in jobs covered by Social Security.The
number of work credits needed to qualify for disability benefits depends on the age at which
a worker becomes disabled.Generally,a worker needs 40 credits,20 of which were earned in
the last 10 years ending with the year the worker became disabled.However,younger workers
may qualify with fewer credits.For example,workers who become disabled at age 50 may
qualify if they have earned 28 credits,with at least 20 of them earned in the 10 years immedi-
ately before becoming disabled.
Certain family members may qualify to receive benefits based on the disabled worker's
record.Spouses may qualify if they are 62 or older or if they are caring for a child of the
worker's that is under the age of 16 or disabled.So may unmarried children under the age of
�< 18(or 19 if still in high school).An unmarried child over the age of 18,who has a disability that
started before age 22,may be eligible to receive benefits on a parent's earnings record.
Each family member maybe eligible for a monthly benefit of up to 50 percent of a
worker's disability rate.There is a limit,however,to the amount that can be paid to families.In
general,the total amount a worker and her or his family members can receive is about 150 to
180 percent of the worker's disability benefits, %.
If disability continues,retired worker benefits begin at the normal age without actuarial
reduction for early retirement. ;
T
All benefits are increased annually based on changes in the Consumer Price Index. '
a _
CENTER FOR COMMUNITY CHANGE&OLDER WOMEN'S ECONOMIC SECURITY TASK FORCE
FIGURE 2: WOMEN'S ENTITLEMENT STATUS, 1960-2012
(ALL WOMEN AGED 62 AND OLDER)
100%
90%
80%
70%
N
60%
50% Dependents Only
a 40% Dually Entitled
30% Workers Only
20% ••<
10%
0%
1960 1970 1980 1990 2000 2010 2012
Year
Source:Social Security Administration,2013.Annual Statistical Supplement.;able S.AM
Note:"Dually entitled"refers to women who are entitled to receive both worker benefits based on their own record and
benefits based on their spouse's record.
At older ages the gender difference in marital either to increase their oAvrn worker benefits or
status is even more marked.In the 75-to-84 as their only means of accessing Social Security
age range,28.1 percent of then are unmarried benefits.
compared with 62.8 percent of women.At age
85 and older, the difference is even larger-42.3 PEOPLE OF COLOR AND SOCIAL
percent of men are unmarried compared with
82.4 percent for women.16 SECURITY
Women living alone,not surprisingly,have
less income than married couples and their People of color are more likely than whites to
incomes are often not adequate to meet their experience economic insecurity during retire-
needs. This,older single women experience ment for a variety of reasons.Differences in
more poverty than older married couples. educational attainment,employment discrimina-
%,`omen who did not marry or whose marriages Lion and job segregation,poverty,morbidity,and
were short-lived due to divorce also lack ac- mortality affect earnings and future retirement
cess to spousal benefits,which for the typi- income,and have led to differences in use of
cal married woman today are larger than her Social Security. Survivor and disability benefits
own worker benefits."Figure 2 above shows make up nearly half of the benefits received by
changes in the ways women access Social Secu- people of color,while constituting a little more
city benefits across the past 50 years.Although than a quarter of benefits for whites."
women have increased their access to Social Differences in employment patterns result
Security through their own work records,the in lower lifetime earnings and/or Social Seen-
majority(51 percent) still use spousal benefits rity benefits for many retired people of color
6 EXPANDING SOCIAL SECURITY BENEFITS FOR FINANCIALLY VULNERABLE POPUtAHONS
as well.Vfomen of color are more likely to and Hispanics receiving less than whites from
have worked in low--,vage and part-time posi- every source.These disparities leave seniors of
tions,making them more vulnerable to poverty color more reliant on Social Security than white
and more reliant on Social Security because seniors (Figure 4).
they have fewer other sources of retirement Women of color are greatly affected by
income."African American,Latino,and Native changes in marriage and divorce patterns that
American men experience higher rates of unetn- impact their economic security in retirement.
ployment and lower wages than white and Asian Among women age 55 and older,African Amer-
men."'Latinos,who make up a large percentage ican women are the least likely to have ever been
of agricultural and household workers,are often married."When they do marry,women of color
disadvantaged by decisions that their employers tend to marry men of color,who often have
make,such as inconsistent wage reporting,mis- lower earnings than whites.-"Married African
classifying employees as independent contrac- American women are also more likely to have
tors,underpaying wages and/or paying wages in worked throughout their married years than
cash and not reporting them,all of which lead white women.White and African American
to the underpayment of Social Security contri- women have similar divorce rates,though the
butions and a reduced lifetime earnings record.21 latter are much less likely to remarry and are
As seen in Figure 3,racial disparities in more likely to experience widowhood.24`while
the amount of income received from earnings, African American women (and children) benefit
pensions,and assets are substantial,with Blacks from disability and survivor benefits earned by
FIGURE 3: SOURCES OF INCOME UPON RETIREMENT BY RACE,
ETHNICITY, AND GENDER, 2011
$16,000 i-------... -----...------ —.—----- —--------....._....---- ----- ...— —
$12,000
$10,000
$8,000 — — --
0
$6,000
I T -
$2,000 — — ...... — - -- --
$0T n - .__
White Black�Hispanic White ; Black Hispani whilejBlack Hispanic White Black Hispanic
Social Security + Asset Income Pensions Earnings
Source:Fischer,Jocelyn and Jeff Hayes.2013. "The irnportance of Social Security In the Incomes of Older Americans."
Washington,DC:Institute for Women's Policy Research.
Mote:These data are for Social Security Beneficiairies aged 6S and older.
CENTER FOR COMMUNITY CHANGE&OLDER WOMEN'S ECONOMIC SECURITY TASK FORCE
FIGURE 4: RELIANCE ON SOCIAL SECURITY FOR 80% OR 100%
OF INCOME, 2011
70%
40%
30%
0
0
10% - -. —
0%
Men I Women p�1Men _ Women F Men Women��
White I Black I Hispanic
Source:Fischer,Jocelyn and Jeff Hayes.2013. "Tile Importance of Social Security In the Incomes of Older Americans."
Washington, D) :Institute for Women's Policy Research.
Note:These data are for Social Security beneficiaries aged 65 and older.
their husbands (and parents),African meri- Proposition 8 is unconstitutional,this share rises
can-,Wmen are less well served by some of the to 30 percent;-"if states that provide similar
family provisions of Social Security because of levels of protection for domestic partnerships
their high rate of singleness and more equal as for opposite sex marriage are counted,four
earnings among couples. in ten Americans (41 percent)live inn a state
recognizing the mutual responsibilities for care
LGBT AND SOCIAL SECURITY and support of families headed by same-sex-
and opposite-sex couples."Our Social SecurinT
In 2030,according to National Gay and Lesbian system should be expanded to insure all families
Task Force projections,72 million;americans in the event of the death,injury,or retirement
will be over the age of 65,including between of working spouses.
3.6 and 7.2 million LGBT individuals."At the Social Security reform for same-sex couples
same time,more states are recognizing same- becomes all the more necessary when taking
sex marriages.With the addition of tlfaigne, into account that,due to past discrimination in
Nfaryla nd,and Washington in November 2012 the workplace,LGBT individuals have a much
and Rhode Island,Delaware,and Afinnesota higher risk of poverty than heterosexual peo-
in i\iay 2013, 18 percent of Americans live in plea"Typically earning lower lifetime incomes,
states (including the District of Columbia) that more than 80 percent of LGBT households also
recognize sane-sex marriage.21 With the recent report raising children'31 suggesting that LGBT
Supreme Court decision holding that California households incur living costs similar to those
8 EXPANDING SOCIAL.SECURITY BENEFITS FOR FINANCIALLY VULNERABLE POPULAFIONS
i
of heterosexual households.LGBT women are their parent's same-sex partner in states where
just as likely as heterosexual women to care for their parents'marriage is recognized.While
children," indicating that expanding coverage of this is an enormous gain for same-sex couples
Social Security survivor,spousal,and death ben- in states where their marriages are recognized,
efits to LGBT families would greatly aid theta, same-sex couples who do not live in a state
In Tune 2013,the United States Supreme that recognizes same-sex marriage may, still be
Court held that section three of the Defense ineligible for these benefits.This discrimination
of-Marriage Act is unconstitutional.As a result, prevents the spouses and domestic partners of
same-sex spouses Nvino live in a state that legally LGBT individuals who have worked and paid
recognizes their marriage are eligible for Social into the Social Security system during the course
Security survivor and spousal benefits when of their lifetimes from receiving benefits for
their spouse has earned disability and survivor which heterosexual spouses of workers would
insurance protection. Children of same-sex qualify.
couples are now also eligible for benefits from
Proposed Improvements to Our Social Security System
.............
ADD A CAREGIVER CREDIT term care options such as ui-home attendants
or nursing homes."In addition to the economic
Caregiving is a fundamental part of family life costs,balancing filll-time work and part-tune
and a vital service to young children,trillions caregiving comes at a health cost: one study
of ill and disabled individuals,and a growing found that of caregivers with less than30,000
number of elderly Americans. For the estimated in household income,34 percent report fair or
65.7 million unpaid caregivers for the disabled poor health as compared with 3 percent of care-
and elderly,who spend an average of 4.6 years givers with incomes of $100,000 or more.31
out of the labor market during their peak work- Women in particular are negatively affected
ing years,providing caregiving services often by the economic costs of caregiving. Women
produces significant economic stress."The make up the inajority(about 66 percent) of the
long-term negative financial impact of that lost people who provide unpaid caregiver services,
time is especially significant for to,\v-income and thus have fewer years on average than men
families and for women,who often take on the in the paid workforce. Combined with the chal-
caregiving role.Most caregivers (61 percent) lenge of persistently lower wages due to sex-
provide their services in addition to working in discrimination,this large block of lost income-
paid wage or salary jobs. earning time means significantly lower lifetime
With caregiving consuming an average of earnings and savings overall."\When not taking
20 hours per week,many families must decide time out of the workforce, female caregivers are
how best to balance paid employment and care- more likely than males to use alternative work
giving responsibilities.This is particularly true arrangements such as taking more flexible or
for low-income families,who often cannot af- part-tune jobs,which often entail losing job-
ford the costs of childcare or professional long- related benefits as well as earnings.
CENTER FOR COMMUNITY CHANGE&OLDER WOMEN'S ECONOMIC SECURITY TASK FORCE 9
The formula used to calculate Social Security, as their generally lover earnings each year they
benefits (based on the 35 highest earning years) work.In 2012,the average annual Social Security
means that workers who take time out of the income received by women 65 years and older
workforce or reduce their paid work hours to was$11,999,compaued with$16,295 for men.;`
provide care for someone receive fewer Social As the country's elderly population contin-
Security benefits upon retirement.If the worker ues to grow and professional care costs continue
has fewer than 35 rears of earrings,years of to rise,the need for informal caregiving will
zero earnings are included among the 35 aver- intensify. Currently, 13 percent of the Atneri-
aged years,which brings down the lifetime aver- can population is 65 or older and that share is
age,in turn lowering the benefit amount that will expected to grow to 20 percent(or 72 million
be paid to the worker.Women,who are more people) by the year 2030,Additionally,as life
often caregivers,average only 32 years in the expectancy grows,the number of people age 85
workforce compared with men,who average 42, or older is expected to more than triple from 5.7
and their benefits reflect this difference as well million to 19 million by the year 2050.`
&-
SARA MOORS
Sara will be 80 years old next year. She lives in Chicago, Illinois. Sara worked
her whole life,starting out as a waitress in her teens in her hometown of
Petersburg, Illinois.She then went on to work in administration for the Illinois
Humane Society and Onward House for about ten years.After that she worked
at a company that made jukeboxes for three years and then a law firm for
about ten iE years,and later worked as a Certified Nursing Assistant. Over the r it course of her lifetime,Sara took time out of the paid workforce twice to care
for family members.The first time was to stay home with her two children when
they were infants. Later on,after her father had several strokes, she became his primary caretaker and ended
up taking 10 years out of the paid workforce to care for him.While.Sara was taking care of her father in the late
1
1970s and early 1980s,they lived on just$300 a month—her father's Social Security check.
After her father passed away in 1987,Sara became a paid caregiver with a homecare agency that worked
with AIDS patients. She went on to get a certificate as a Certified Nursing Assistant(CNA),This work was very
rewarding,very challenging,and very low-paid.She worked for several years taking care of AIDS patients,until
the end of her career when she got cancer and could no longer work.
Despite spending over thirty years in the paid workforce, and being the primary unpaid caregiver for her
ailing father and her children,Sara now receives a Social Security benefit that is just$953 dollars a month,or
a meager$11,436 a year, leaving her Social Security benefits below the poverty line for 2013($11,490 for a
I single individual). Sara was married for seven years, and therefore does not receive a spousal benefit. It is very
hard for Sara to make it on her Social Security benefits,her main source of income.Without support from her
two children and food from the Lakeview Pantry and Catholic Charities,she does not know how she would
make it through.As is, she can rarely buy fresh vegetables and fresh fruit,which she loves;and she never buys
j
steak or candy bars,which she cannot afford.
1Q EXPANDING SOCIAL SECURITY BENEFITS FOR FINANCIALLY VULNERABLE POPULATIONS
FIGURE 5: POVERTY FOR WOMEN AND MEN AGED 65
AND OLDER BY MARITAL STATUS
1 14AA -
14 t'
1 '
10' 1d€sr rrr ��1
,�arrEt
�1
Moo t)vo dl
Source:IWPR analysis of 2012 Current Population Sur�,ey Annual Social and Economic Supplement.
Note:Married includes married,spouses absent.
Social Security's family benefits—those Indeed,in many countries that provide credits
provided to spouses and qualifying children of for caregiving,the primary goal is to improve
retired,disabled,and deceased workers—have benefit adequacy for women and thereby reduce
become more available since first introduced in their poverty rate.;
1939,especially by the addition of benefits for In addition to increasing benefits for
the spouses of disabled workers and for former- women(or men)who provide caregiving to
ly married spouses. Social Security,unlike public children,the disabled,or the elderly outside
pension systems in other OECD countries, marriage,caregiving credits can help equal-earn-
however,does not provide credits for caregiv- ing spouses (who also receive little by way of
ers.Thus,in the United States,unpaid caregivers Social Security's spousal benefits)receive higher
are compensated in retirement only if they were benefits because of time spent giving care. Such
married at least 10 years or are widowed or cur- help would be available to members of gay and
gently married,which leads to some caregivers lesbian couples as well,whether their relation-
receiving relatively generous benefits while oth- ship is legally recognized or not.
ers receive no compensation for their caregiving Researchers at the Institute for Women's
labor.sF Policy Research have noted a wide variety of
Discrepancies in poverty rates between men objectives among countries'caregiver credit
and women and between married and unmar- programs,including prevention and alleviation
tied individuals,along wide changes in marriage/ of poverty,vusing women's employment levels,
divorce rates and family structure,highlight encouraging higher birth rates,and improving
the need for caregiver credits to help close the gender equality,all of which would affect how a
gap in poverty-rates and modernize the system. caregiver credit its designed."
CENTER FOR COMMUNITY CHANGE&OLDER WOMEN'S ECONOMIC::SECURITY TASK FORCE 11
TABLE 1: DOLLAR AMOUNTS FOR A PROPOSED NEW
CAREGIVING CREDIT FOR SOCIAL SECURITY
Earnings Value of Caregiving Credited Total Amount Credited
(Earnings+Caregiving Value)
$0 $21,000 $21,000
$5,000 $18,273 $23,273
$10,000 $15,545 $25,545
$21,000 $9,545 $30,545
$35,000 $1,909 $36,909
$38,500 $0 $38,500
FIGURE 6: ILLUSTRATION OF CREDIT AMOUNTS IN RELATION
TO EARNINGS AND PROPOSED NEW CAREGIVING
CREDITS FOR SOCIAL SECURITY
$40,000
$35,000 W._ Total Amount,
Credited(Earnings
$30,000
on
$20,000
ba
Qj
$15,000
$10,000
$5,000 _..__Caregiving Value
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000
Earnings
Source:Hartmann,Heidi and Jeff Hayes."What a Caregiving Credit Could Look Like." Institute for Wo€nen's Policy
Research.
Regardless of how a caregiving credit low-income families.Adding a caregiver credit
is designed and implemented,however,it is assigns an economic value to the essential cue-
imperative that our society recognizes the value giving services provided by individuals to their
of these services and the difficult trade-offs children,spouses,parents,grandparents,and/
they present,especially for women and for or other family members,while mitigating the
12 EXPANDINC:i SOCIAL SECURITY BENEFITS FOR FINANCIALLY VULNERABLE..POPULATIONS
long-term disadvantages that an individual ac- achieving the American Dream.Education pro-
crues because she or he reduces paid work time duces a skilled,productive workforce and an en-
in order to provide care. gaged,participatory democracy.Unfortunately,
What could a caregiving credit look like?It postsecondary educational attainment remains
could provide an earnings credit for every year a faraway dream for many young,to-v-and
with a child under 6 (available to both parents middle-income Americans,who face the reality
and/or non-married partners or single par- of falling household incomes,rising tuition bills,
cuts who live with the child),a disabled family and the prospect of daunting student debt.
member,or a senior in need of care,in which ',Nith private and federal financial student aid
a caregiver earns less than a set maximum(for falling in comparison to rising tuition,a fam-
example,$38,500,which is approximately the ily's income is often the primary determinant of
average worker's eaniiings in 2010).A caregiving whether or not a student will be able to go on to
credit could reward work effort so that earners postsecondary education.For students with a par-
have somewhat more money on their records ent or primary provider who is retired,disabled,
than non-earners. In the example shown here, or deceased,the financial barriers to postsecond-
the size of the credit phases out from a maxi_ ary education are even greater.Our Social Seen-
nnum of$21,000 (a value equal to approximately rity system steps in when a parent dies,becomes
half of average earnings) at$0 earnings to$0 of disabled,or grows old and retires from work.It is
credit at$38,500 in earnings,so that recipients the sensible candidate for distributing benefits to
would receive an earnings credit of $21,000 per such young people,and did so until 1981,when
year if they earned nothing through paid work. the student benefits were terminated,after more
This proposed caregiving credit provides than 15 years of providing effective support to
the most benefits to lower earners and those low-income youth and youth of color.
who do not work at all while caregiving,but In the wake of the Great Recession,
also rewards those-who combine earning and postsecondary educational attainment is more
caregiving. Credits such as these,when added important than ever.Those with a high school
to the regular earnings of workers,will serve diploma or less make up a disproportionate per-
to increase the retirement benefits from Social centage of the unemployed population."-X1any
Security of those who have had to reduce their of the jobs available that do not require postsec-
earnings because of providing caregiving. ondar r education do not pay a living wage,even
with a full-time schedule.The"college wage
Proposal:Euszzre it not premium"—or the earnings gap between those
jeoparditied when they have to care for loved ones by cre- who have a college degree and those who have
atirru a caregiver credit in Social Securily for periods of only a high school degree—is far higher today
fine when a av iker had no or reduced earnings because than it was when students benefits were terms-
of caregiving reoon.zbiklies. nated in 1981,and it continues to grow Be-
tween 1981 and 2007, the earnings gap between
male college graduates and male high school
RESTORE STUDENT BENEFITS graduates increased from 22 to 44 percent;
for women,the gap increased from 28 to 49
Higher education increases workers'opportunity percent."In 2012,individuals who held at least
to achieve economic security and social mobil- a bachelor's degree had median weekly earnings
ity,and is a critical step along the path toward of $1,066,while those who had graduated from
CENTER FOR COMMUNITY CHANGE c&OLDER WOMEN'S ECONOMIC SECURITY TASK FORCE 13
CHARLCIE JONES
Charlcie was born and raised in Nashville,Tennessee. She lived with her
mother,Theodora Etter,who had a passion for cooking and spent her career
as a chef, In 2008,when Charlcie was only 14 years old,her mother tragically
passed away from breast cancer. Charlcie went to live with her father.She
received Survivor Benefits of$1,310 per month,which helped her father to
care for her through her high school years. Since her father was a low-wage
worker,these benefits were essential for taking care of Charlcie and making
=I
sure her needs were met. ,
Charlcie was a solid high school,student. In her senior year,she applied and was accepted to the University of
Tennessee in Knoxville,where she planned to major in pre-law. Unfortunately,when Charlcie graduated from high
I= school in 2012,her Survivor Benefits ended.Although Charlcie was paying in-state tuition,had financial aid,and
received some scholarships,it was not enough to cover all of the costs associated with college(the University of
Tennessee estimates that the total cost of attendance per year for an in-state student is over$25,000).
Charlcie was determined to go to college,and she attended for one year, but was unable to afford
to continue. She is back at home this semester working for a security company on the night shift.She is
determined to save enough money to return to school next semester. if Charlde's survivor benefits had
continued while she attended college,she would still be enrolled in the University of Tennessee today,
pursuing the education needed for her chosen career.
f
high school but had not gone to college had compared to 40 percent of-wbites."These at-
median weekly earnings of$652,a difference of tvnment gaps mean that thousands of bright
4-9 percent." students are being left behind,negatively affect-
The value of a college degree has nearly ing not only their families and fixtures but also
doubled since 1970,in terms of future earnings, the potential competiveness of the U.S.work-
but the number of students from low-income force overall,
families graduating from college is not keeping Sources of financial aid for low-income
pace.The percentage,of low-income college students are dwindling,particularly at public.
students graduating by age 24 grew by only 2.1 universities.After adjusting for inflation,a year's
percentage points between 1970 and 2009,from tuition,room and board in public.four-year
6.2 percent to 8.3 percent.Among students institutions has more than doubled since 1979,
from families in the highest income quartile,the reaching about$17,860 in 2012."The aver-
graduation rate surged by 42,2 percentage points, age Pell Grant today will only cover 10%of
doubling from 40.2 percent to 82.4 percent{ the average cost of room,board and tuition at
There is also a clear gap in educational at- private four-year institutions'and 20°o of these
tainment by race and socioeconomic status. In costs at public four-year institutions,Thirty
2012,among Americans aged 25 to 29,just 23 years ago, the average Pell Grant would have
percent of African-Ameiicans and 15 percent covered 20%and 40°o of these costs,respec-
of Hispanics had a bachelor's degree or higher, tively.4'The other primary sources of financial
'111. EXPANDING SOCIAL.SECURITY BENEFITS FOR FINANCIALLY VULNERABLE POPULATIONS
aid are scholarships corning directly from the new graduates before they have even earned
educational institution.These have not kept up their first paycheck after graduation."
with college costs either,and have shifted away In the past,some of these financial and ac-
from a need-based approach towards a"inerit"- cessibility issues were eased by student benefits
based approach that favors students from more from our Social Security system.Children whose
affluent backgrounds.As a result,froin 1995 to parents retired,died,or were disabled could
2003 total financial aid to students with family receive benefits until the age of 22,providing
incomes below$20,000 grew only 50 percent, them with financial assistmice if they chose to
while total aid to students with family incomes pursue higher or vocational education.In the
over$100,000 increased 277 percent." peak year of 1977,nearly 900,000 students were
Because a college degree has become a the receiving these benefits,which went primarily to
facto necessity to enter or remain in the ranks of children of parents with blue-collar jobs,African
the noddle class,student loans have become a Americans,and students with lower incomes.''
fact of life for students lookuig to snake up the The 1976 Social Security Administration(SSA)
difference between dwindling aid and skyrocket- survey of the program found that 36 percent of
itng tuitions.Between 2009 and 2012, total stu- the students enrolled in college and 54 percent of
dent debt nearly tripled."The average amount those in community college or vocational schools
of student loan debt for the Class of 2011 was reported that they could not afford to stay in
$26,600,This represents a substantial drag on school without their Social Security. benefits.
FIGURE 7: MAXIMUM AND AVERAGE PELL GRANT AND AVERAGE
COST OF TUITION, ROOM, AND BOARD AT FOUR-YEAR
PRIVATE AND PUBLIC INSTITUTIONS, 1979 AND 2009
(CONSTANT 2009 DOLLARS)
$35,636
$35,000
"I a
E ,
N Private
$20,000 r — , : x.... T:_._. _�_p_-_, E Public
$14,768 $15,213 Maximum Grant
$15 000MON
--
_ "Average Grant
$10,000 � ._�
W -6,858
$5,394 $5,777
$5,000
1979 2009
Source: Hertel..Fernandez,A.2010."A New Deal for Young Adults:Social Security Benefits for Post-Secondary School
Students."Washington,DC:National Academy of Social Insurance,
CENTER FOR COMMUNI tY CHANGE&OLDER WOMEN'S ECONOMIC SECURITY TASK FORCE 15
Unfortunately,postsecondary student ben- Security Adrniuistration(SSA)estimated that if
efits were phased out in 1981 tinder President benefits were reinstated for students through age
Reagan as part of the Budget Reconciliation 22,it would cost about 0.07 percent of taxable
Act,due to concerns about adnninistrative errors payroll over the 75-pear actuarial horizon.'
and the financial solvency of otur Social Security Givers the positive impact of student
system, benefits, the importance of obtaining a college
Currently'children of a working parent degree in today's labor market,the increasing
who has died,been disabled,or retired are eligi- cost of higher education,and the decreased
ble to receive Social Security benefits until their availability of student aid,it is imperative that
18`'birthday(or 19t'if still in high school). vulnerable students have access to any and all
The average monthly benefit for a 17-year-old resources,including Social Security benefits,
beneficiary in 2012 was$852 for children of that can facilitate their access to higher educa-
deceased parents,$410 for children of disabled lion.
parents,and$665 for children of retired work-
ers.''In recognition of the vital importance and Proposal:Exlend So ial Secrart, ebildrens benefits to
rising cost of a college degree, these benefits vrrltter<rble.rtzrdents whore parentr have died, becolve
should be extended through the age of 24 to a disabled or retired in order to enable them to complete
student in postsecondary education.Although their education by restoring benefits thror�;h age 24 for
the original program provided benefits through those parl&Oatiq in postsecondary education.
the age of 22,the average age of students
completing their bachelor's today is 24,so it is ENSURE BENEFITS ACCURATELYRE-
appropriate to extend the age.Age 24 is also FLECT THE TRUE COST OF LIVING FOR
the cutoff for inost other federal educational
aid programs. SENIORS BY INCREASING BENEFITS
The student benefits prograrn was an ef- ACROSS THE BOARD AND MAKING
fective and valuable support for college-aged SURE THE ANNUAL COST OF LIVING
students whose families were in challenging ADJUSTMENT IS BASED ON SENIOR
circumstances.The two principal reasons cited
in 1981 for the benefit elimination—adminis- SPENDING PATTERNS
trative challenge and a Social Security shortfall
—are much less relevant today. Social Security is the bedrock of financial
In due past,the difficulty of verifying student security for millions of Americans;without it,
enrollment and eligibility for die benefit often nearly half of all seniors would be poor.54 Half
caused overpayment errors.Today,vast improve- of American workers have no retirement plan
ments in electronic student verification through through their employers and,among those with
tools like the Free Application for Federal Stu- 401(k) defined contribution pension plans, the
dent Aid (FAFSA)—which is required for nearly median balance of these accounts is less than
all schools—effectively address such concerns. $30,000.55 As stock market losses and staguat-
The cost of reinstating student benefits ing wages have made it harder and harder for
would be minimal relative to the economic and workers to save for retirement,Social Security
social value of the benefits,Although,,ve do not has become increasingly important for millions
have a revised cost estimate for providing student of Americans.Yet for many,Social Security
benefits for students through age 24,the Social benefits fall short of what is needed to make
16 EXPANDING SOC:AL SECURITY BENEFITS FOR FINANCIALLY VULNERABLE POPULATIONS
i
RITA LOBERGER
Rita is 72 years old and lives in Tigard,Oregon.She has three children.When
they were were young,she took time out of the paid work force to take
care of them.When they were grown up,she went to work at Pinnacle Risk
Management Services for 10 years. Rita originally started working in the filing
department,but injured herself moving large tax file storage boxes.After her
injury,she transferred to the data entry department. Her husband Frank also
worked at Pinnacle and was planning on retiring at age 65;but due to illness, he
had to stop working at age 62.When they both retired,Rita's monthly check was$588 and Frank's was$1,239.
Starting in May of 2013, Frank's health began to significantly deteriorate. He passed away in July of 2013.
Now Rita is receiving a benefit of$1,589,on which she lives.Although she has a small 401(k)which helps
s her with expenses, Rita is hardly making ends meet. She lives in a manufactured home park community;and
while she owns her home,she has to pay$700 per month in rent for the lot it sits on.
h.
ends meet.This problem will only worsen as the INCREASE BENEFITS ACROSS THE BOARD
value of Social Security benefits slowly dimin- An immediate across-the-board increase would
ishes,as the result of already enacted cuts to help bring benefits up to date,particularly for
Social Security;the replacement rate for lifetime lifetime loxv-wage earners,women,and other
earnings is expected to drop to 39 percent of vulnerable groups.Based on Alay 2012 average
median household income for those retiring in benefits,a 5 percent increase would bring annual
the mid-2020s,a steep decline from 50 percent payments up from$14,400 to q515,120,In other
of median household income for those retiring words, the average beneficiary would receive an
in the mid-1990s.5'By 2030,the income replace- additional$55 per month."If a$55-per-month
ment rate will fall to 32 percent of previous benefit were paid as a lump sum to everyone,
income,due in part to a legislated increase to 67 this adjustment would raise benefits propor-
years for fuB benefits.''' tionally more for those at the low end of the
Ensuring that benefits are adequate and income distribution than it would for those at
their value does not erode over time is particu- the high end of the income distribution.This
larly important for low-income seniors,who change would cost about 0.75 percent of taxable
often do not have other,sources of retirement payroll over 75 years.''
income and are extremely vulnerable to ending
up in poverty in their old age. MAKE SURE BENEFITS KEEP PACE WITH THE
In response to increasing reliance on RISING COST OF LIVING
Social Security benefits in the wake of grow- In order to ensure that Social Security s benefits
ing retirement insecurity, and the slow erosion do not erode over time,as beneficiaries age and
of the value of current benefits,it is time to: 1) spend savings,the annual cost of living adjust-
increase benefits across the board and 2)use a ment(COLA)must use a consumer price index
more accurate measure to determine the annual that accurately reflects the spending patterns of
cost of living benefit increase,moving forward. older Americans.The current measure of infla-
CEMFER FOR COMMUNFfY CHANGE &OEDER WOMEN'S ECONOMIC SECURITY TASK FORCE 17
tion that is used to determine the annual COL_ , average,such as women,African Americans,and
the CPI--W,is not based on seniors'unique Lati nas/Latinos.`'-According to a 2009 AARP
spending patterns,which differ from those of report,older women spent between 32 and 40
other households. One key difference in senior percent of their annual income on healthcare,
spending patterns is that seniors have higher whereas men spent on average between 23 and
spending on health care,and health care costs 35 percent."
have risen faster than prices for other goods and The SSA estimates that the CPI-E will rise
services for more than three decades.For ex- about 0.2 percentage points per year faster than
ample,monthly premiums for Medicare Part B the CPI-Nv,the current price index.This would
have more than doubled since 2000,increasing vieid a monthly benefit that is about 6%higher
from$45.50 to$104.90 in 2013. Social SecuritZT's by the time a retiree reaches age 92.If the CPI-
annual COLA has not kept pace.The Medicare E switch were implemented today,a 92 year:-old
trustees estimate the average premiums from retiree who is in the"low lifetime earner"cat-
Niedicare Part B and Part D will be equivalent egory(average annual wages of$19,354)would
to I I o of the average Social Security benefit see a nominal increase in monthly benefits
in 2013,and is estimated to increase to 19"'o in of about$53 under the CPI-E cost-of-living
2087,"' calculation,"which could cover a full week of
In recognition of the unique needs of groceries each and every month,05 (Because it
seniors,Congress directed the Bureau of Labor is a more accurate measure of costs,the CPI--
Statistics to develop an index that reflects the E would provide no increase in real terms,of
unique spending patterns of seniors.In re- course.)
spouse,the BLS created a new,"experimental"
CPI in 1987 that places more weight oil health proposal:Increase bone litr un#hry ly 6y j percent of
care costs and more closely-reflects the spending averageay>laent and calcnlata annrraZcost of living
of people with disabilities.This index—known WiPstwents rising Me CPI-E so that benefits»roje ac-
as the CPI-E—is gaining more and more atten- enzately reflect Me actiad cost of living for seniors.
tion as the burden of medical costs increasingly
weighs on the pocketbooks of seniors. INCREASE THE SPECIAL.
MINIMUM
A COI A_that better reflects the true cost
of health care for seniors is particularly inn- BENEFIT
portatnt to to-,v--income beneficiaries.Research
shows that poorer beneficiaries have higher Social Security benefits are tied to a worker's
out-of-pocket health care costs relative to their earnings over the course of their working
incomes,often due to the physical demands of lives,and as a result persistent low wages lead
IoNv-wage work and poor environmental condi- to lower benefits in retirement.Workers in
tions—a trend that will continue to worsen as low-wage jobs also often experience unem-
medical costs rise.G1 Seniors in the bottom fifth ployment,take time out of the workforce,or
of the income distribution currently spend a reduce their hours to provide care fora child
median of 21 percent of their income on health or family member,and thus face further reduc--
care. Over the next 30 years,that income share Lions in benefits upon retirement.Though Social
will rise to 39 percent. High health care costs Security benefits replace a higher percentage
have a significant impact on groups of older of the earnings of low lifetime earners,current
Americans who have higher poverty rates on benefits alone are not enough to assure that all
1 fi EXPANDING SOCIAL_SECURITY BENEFITS FOR FINANCIALLY VULNERABLE POPULATIONS
I
recipients remain above the poverty line.For In 1972,a"special minimum benefit" provi-
example,an individual who worked steadily at sion Nvas added to our Social Security system to
the federal minimum wage and retires at age 62 improve benefit adequacy for long-term low-
would receive Social Security benefits at about wage workers,and it took effect in 1973.The
three-quarters of the poverty rate."' special minimum benefit is based on a different
Many seniors find themselves in poverty in formula for calculating benefits than the regular
retirement because they were in or near pov- Primary Insurance Amount(PIA) formula,and
erty throughout their working lives,and are less it requires a minimum of 10 years with earnings
likely to have private pensions or savings,so they in Social Security covered employment above
are more reliant on Social Security.As Figure 8 a certain threshold in order for a worker to be
shows,A ican Americans,Latinos,and Asian eligible.If a worker has earnings in a particular
_Americans experience senior poverty at over year that fall below the threshold for a"year of
twice the rate that whites do.They are more likely- coverage" the worker cannot earn credit for that
to depend on Social Security for 90-100 percent year.In 2012,the threshold for a year of cover-
of their family income(see Figure 4)."-Women age was$12,285.7p
face higher poverty rates than men across all Workers receive the special minimum
racial groups (see Figure 5)."People of color benefit only if the benefits are higher under the
are also much more likely to have chronic health special nninninnurn benefit formula than under
problems and disabilities,which means even the regular PIA formula.Because the value
greater medical cost pressures" of the regular PIA formula (which is indexed
is
HATTIE WILKINS �
Hattie is 63 years old. She lives in Youngstown,Ohio,where she was born and
raised. She worked for 35 years at Brentwood Originals,a pillow factory in I'
Youngstown,as a machine operator.When she started at Brentwood in 1973,
Hattie made$1.75 per hour;and after 35 years she was making $11 dollars
s
per hour. Hattie.received health insurance through her job and had savings,
which have been exhausted since she stopped working a few years ago at
the factory.After she left the factory,she struggled to find work,and started
collecting Social Security at age 62.
is Since Hattie has no savings,she is entirely reliant on Social Security,but her benefit is below the poverty
line at$876 dollars per month. Hattie also receives food stamps and visits food pantries so that she can get
vegetables,since her food stamps are insufficient to cover her food budget. Every month is a struggle for
Hattie. She needs to juggle her bills so she can afford to put gas in her car. She occasionally makes pastries j
and pies to sell at the farmers`market for extra money.. Despite having worked hard her whole life, Hattie faces
a very insecure retirement,and is now starting to study social work so she can help people and continue to
work and earn an income. Hattie is also actively organizing in,her community to protect Social Security and to
n
strengthen it. €
CENTER FOR COMMUNITY CHANGE&OLDER WOMEN'S ECONOMIC SECURITY TASK FORCE 19
FIGURE 8: AVERAGE POVERTY RATES FOR SENIORS BY RACE/ETHNICITY,
2011
18.7%
14.0%
12.0% _ e.. .. _� 117%
�>. 10.0% >...__ 8.751.
v
0 8.0%
6.0%
a
4.0%
2.0%
0.0%
Overall White Black Asian Hispanic
Source:Department of Health and Human Services,Administration on Aging.2012.A Profile of Older Americans:2012
Note:These data are for those aged 65 and older.
to wages)has gone up faster than the special are robust enough to lift long term low wage
minimum benefit formula (which is indexed to earners out of poverty in retirement.
inflation),fewer and fewer retirees receive dhe We recommend that the special minimum
special minitnum benefit.For example,in 2000, benefit be updated so that it provides benefits at
about 142,000 workers received the special fuull retirement age that are at least:125 percent
minimum benefit,while in 2010 the number of the poverty line for those with thirty years
of people receiving the benefit had fallen to a of paid work including caregiving. In addition,
meager 76,000." The special minimum benefit the threshold for establishing a year of cover-
is now on the verge of disappearing entirely age should be lowered so that more low-wage
In addition to reaching too few retirees,the workers can be covered.These increases would
special minimum benefit does not keep benefi- provide vital support to elders who experience
cifflies out of poverty. For example,in 2012,the disproportionately higher rates of poverty,such
maximum special minimum benefit for a retiree as single women and people of color.
with 30 years of covered earnings was$9,487.20
annually,lower than the official poverty line. Proposal:Provide the lowest wage earners zvho lyane
«''orkers with a full career at low pay,includ- sgnificant nvrl-history)vitb agzraranteod mit7iv>zu>tz
ing caregiving years,should not have to face benepit that is at least 125 percent of the fetJeralpoverty
poverty or worse when they retire.The special lure,zvhile allorvlugfortip to ten famil,carghingyears
minimum benefit should be updated so that it of credit toward the uuvtputatzon of the benefit.
does not disappear and it provides benefits that
20 EXPANDING SOCIAL_SECURITY BENEFITS FOR FINANCIALLY VULNERABLE POPULATIONS
i
i
PROVIDE EQUAL ACCESS FOR LGBT will consider individuals to be married if the
FAMILIES marriage was valid in the State where it was en-
tered into,even if the couple moves to a state
Social Security should be expanded to ensure that does not recognize the validitjT of their
that all families receive family benefits in the marriage.Determining eligibility for same-sex
event of the death,injury,or retirement of a spouses should be modeled after the IRS eligi-
worker.While many LGBT families will now be bility process to ensure that all LGBT couples
eligible for Social Security spousal and fam-
ily who are legally married will be able to rely on
benefits,there are still many who will not the economic support from Social Security no
qualify,because they do not live in a state that matter where they live.
recognizes same-sea marriages. Since eligibility
Additionally, spousal and family benefits
for spousal or family benefits is currently de-
should be extended to include all same-sea
tertniiied by the laws of the state in which they
domestic partnerships.«%hile Social Security
reside, same-sex couples who are legally mar- lavv,does allow eligibility for spousal benefits for
Tied in one state become ineligible for benefits
those who live in a state whose laws state you
if they move to a state that does not recognize
can inherit personal property without a will(as
their marriage.Not all federal agencies use the would a"wife"or"husband"),all same-sea do-
state of residence to determine eligibilit3,. For mestic partnerships should be viewed the same
example,the Internal Revenue Service (IRS)
as marriage for the purpose of determining
E
MAUREEN HENNESSEY
Maureen Hennessey and Mary Beth McIntyre met and fell in love in 1984.
They committed to each other and spent the next 29 years raising three
children, Maureen working as a teacher and Mary Beth as an entrepreneur,
and contributing to their Philadelphia community. k
In 2009, Mary Beth was diagnosed with terminal cancer. Maureen left 1
her job to care for Mary Beth full-time.As Mary Beth and Maureen tried
to treasure their last,months together,they also worried about Maureen's
financial health after Mary Beth was gone.
Because their marriage is not recognized in Pennsylvania, Maureen must pay a 15 percent inheritance tax
on half of their shared property, including their home.And unless their marriage is recognized in Pennsylvania
before Maureen turns 65,Maureen will not be eligible to receive Mary Beth's Social Security benefits.
Pennsylvania's refusal to recognize her marriage to Mary Beth does more than cause Maureen economic
hardship. In her time of grief,she is denied the comfort and dignity of being acknowledged as Mary Beth's
widow.
Mary Beth died in May 2013,and Maureen's economic situation is still in limbo.'
j
'ACLU."Whitewood v.Corbett:Plaintiff Profiles,"<https://www.aclu.org/lgbt-rights/whitewood-v-Corbett-plaintiff-profiles#hurdle>
t
-...._...._
CENTER FOR COMMUNITY CHANGE&OLDER WOMEN'S ECONOMIC SECURI-Y TASK FORCE 21
eligibility for family and spousal benefits.Fur- Proposal: Inchade.tame-sev doiuesticpa>tner.+bos as
thermore, same-sex couples who would enter equal to lvarriages for slates that recogni e domestic
into marriages or domestic partnerships if they partrrerahips, but not same sett-marriage,and adopt the
lived in states that recognize the arrangements glace of marriage"standard for determining eligibilily
should be considered married for purposes of so that all emples rvho have been legally yncn tied are eli-
Soci rl Security: Bible for•benefits no>natter)))hat state they lice in. GIN-
mitted sane-se,1 co rples rvho have no access to marriage
or do>nestic par tnowhips should be imputed as anarried
rayingr Improvements, el t Solvency Issues
.................................................-..........................................................................................................................................
Social Security is current-funded.Any excess of Economic Security Task Force and the Center
income over benefits paid is held in trust and for Community Change propose policies to en-
invested in interest-bearing obligations of the sure a full employment economy and"scrapping
United States. Social Security has three sources the cap"so that everyone pays the same tax rate
of income. It is primarily financed through for Social Security
dedicated mandatory contributions on wages.
Employers and employees each pay 6.2 percent MAKE SURE EVERYONE PAYS A FAIR
of-wages up to a matimurn earnings level of SHARE OF SOCIAL SECURITY CO TRI-
$113,700(in 2013),while the self-employed pay BUTIONS
12.4 percent.A second source of income is
interest generated on its accumulated surplus, Right now,there is a cap on the amount of
which currently equals about$2.7 trillion dol- wages that are subject to Social Security contri-
lars.The third source is revenue generated from butions;this should be changed so that all wages
subjecting benefits to the federal income tax and are subject to Social Security contributions. In
dedicating that revenue to Social Security.Every 2013,only earnings tip to $113,700 are subjected
year,Social Security's Board of Trustees reports to Social Security contributions and counted
to Congress the program's projected spending toward workers'fixture Social Security benefits.
and revenues for the subsequent 75 years.Using The cap is indexed to keep pace with growth in
a moderate rate of future economic growth as the average earnings of workers.Prior to index-
well as dozens of other economic and derno- ing the maximum,Congress stated the explicit
graphic assumptions,the system's Trustees have goal of covering 90 percent of the aggregate
projected that Social Security can pay all benefits wages of all workers under the maximum. Cur-
in full and on time through 2033.After 2033, rently,however,the cap covers approximately
income is projected to be sufficient to pay about 83 percent of aggregate earnings,due to more
three-quarters of scheduled benefits through rapid growth in the earnings of those at the top
2086 (the end of the 75-year period)and be- of the economic ladder in recent decades.72
yond. In order to pay for the improvements sug- Eliminating the cap and applying Social
Bested in this report and eliminate the projected Security contributions to all earrings wound help
long-term solvency shortfall, the Older`omen's pay for an expansion of benefits and substan-
22 EXPANDING SOCIAL SECURITY BENEFITS FOR FINANCIALLY VULNERABLE POPULATIONS
4
I
i
tially eliminate Social Security's projected long- income taxed earnings are assessed for Social
term solvency shortfall. Options for eliminating Security contributions.
the cap include the following: 1) eliminate the
cap and do not count additional earnings toward
benefits,2) eliminate the cap and count all earn- ACHIEVE FULL EMPLOYMENT AND
inngs toward benefits,3) eliminate the cap and BROADLY SHARED PROSPERITY
count all earnings toward benefits Nvidn a more
progressive formula. The Great Recession resulted in a dramatic rise
Eliminating the cap and not counting ad- in unemployment,from which the United States
ditional earnings toward benefits would pap has yet to fully recover. One way to help pay
for the proposed expansion of benefits and for improvements and close the Social Secu-
significantly reduce die 75-year shortfall.With city long range financing shortfall is to pursue
this change,workers who earn more than die frill-employment fiscal and monetary policies
current tax cap would pay more in taxes,while and a pro-worker agenda,including raising the
their maximum benefit would be no higher than minimum wage and strengthening collective bar-
under- current law gaining rights.Such policies would have multiple
Eliminating the cap and counting earnings positive effects on Social Security's long-term
toward benefits mould pay for the proposed finances:raising real wages,reducing the share
expansion of benefits and reduce the 75-year of earnings above the cap,and lowering the
shortfall by a little less than half. I nigh earners beneficiary-to-worker ratio,among others.
and their employers would pay considerably According to the 2012 Social Security
more,but these top earners would also receive trustees'report,productivity growth has aver-
more in benefits. aged 2.06 percent per year in the last complete
Eliminating the cap and counting earn- business cycle (2000-07), 1.75 percent in the
ings toward benefits with a more progressive previous cycle (1989-2000),and 1.65 percent in
formula would pay for the proposed expansion all cycles since 1966.The trustees report also
of benefits and reduce the 75-year shortfall by provides a"low-cost"alternative scenario for
more than half This option would avoid paying their 75-year projection,which is intended to be
very high Social Security benefits to high earners optimistic but plausible,estimating that wage
while retaining the traditional link between earn- growth of 1.71 percent rather than 1.12 per-
ings and benefits.'; cent would reduce die projected shortfall by 34
We recommend the third option,eliminat- percent. Successful and much needed efforts to
ing the cap and counting all earnings toward lower unemployment,raise wages,and connect
benefits with a more progressive formula,as an wage growth more closely to past and future
additional way to pay for the benefit expansions growth in productivity would have a substantial
proposed in this paper and contribute to solving beneficial effect on Social Security financing.
the long-term funding gap.Different proposals
phase in the increase in the earnings in different
ways." ENACT COMPREHENSIVE
An additional way, to ensure that all work- IMMIGRATION REFORM
ers pay contributions on all their earnings is
to make sure that health savings accounts and Comprehensive immigration reform will
other vehicles that allow workers to use pre- strengthen Social Security and extend the sol-
CEN-FER FOR COMMUNITY CHANGE&OLDER WOMEN'S ECONOMIC SECURITY TASK FORCE 2.3
vency of the program while guaranteeing that pay for the benefit improvements we describe
millions of currently undocumented workers above.
would gain access to Social Security benefits These measures inight include:
and the added economic security this would
entail.There are currently 11 million undocu- >V Applying the current Social Security con-
mented-workers in the United States.They make tribution rate to unearned income such as
substantial contributions to our Social Security capital gains and dividends;
system through payroll taxes,yet they and their
Expanding the federal estate.tax and dedi-
children are ineligible to receive benefits.'s
eating a portion to be contributed to the
Comprehensive immigration reform would
Social Security Trust Fund;
lead to higher wages for workers who are cur-
rently undocumented,which would increase Increasing the,current Social Security
overall Social Security contributions.Addition- contribution rate by a modest amount to be
ally,immigrants are disproportionately young phased in over an extended period of time;
and would provide favorable demographics to a Enacting a financial speculations tax,witli
Social Security System that increasingly supports proceeds dedicated to Social Security;
an aging population;59 percent of immigrants
are between 25 and 44 years old."'Increasing Enacting a new marginal income tax rate for
the share of younger workers would strengthen adjusted gross income in excess of S1 mil-
Social Security, lion and dedicating the proceeds to Social
Security.
ADDITIONAL REVENUE SOURCES Social Security is a bedrock program that
provides financial security to.ktnerican workers
As needed,in combination with full employ- and their families.We cannot afford not to in-
ment strategies and lifting the cap,there are a vest adequate revenue to preserve and improve
number of other revenue sources that might it so that it can continue to meet our needs
be pursued to enhance Social Security to make throughout the 21"century and beyond.
it fully solvent over the next 75 years and to
24 EXPANDING SOCIAL SECURITY BENEFITS FOR FINANCIALLY VULNERABLE POPULATIONS
I
I
Conclusion
Despite the significant social,political,and firther increasing the economic disadvantages
economic changes that have expanded oppor- already-experienced by same-sex couples.
tunities for women and people of color,these Furthermore,the risk of inadequate retire-
populations still remain disproportionately meat income has increased for all Americans,
financially vulnerable,particularly during their making Social Security an even larger portion of
retirement years.Women,on average,make less future retirement income.Because many Ameri-
and work fewer hours than men.They often cans find themselves dealing with the afteref-
face litnited employment opportunities and ex- fects of an economic recession that devastated
perience interrupted work histories.They have their retirement savings and the value of their
fewer sources of retirement income,and longer homes, the changes proposed above,includ-
life expectancy,all of which results in women ing an across-the-board benefit increase,can
experiencing greater economic insecurity during contribute to improving the adequacy of retire-
retirement. ment income for all who receive Social Security
People of color are also financially vulner- benefits.
able truing retirement due to a number of Our Social Security system is a critical
factors,including differences in educational piece of the retirement puzzle,and is essential
attainment,employment discrimination and job to women,people of color,and low-income
segregation,morbidity,and mortality,which af- individuals.The improvements proposed in this
fect lifetime earnings,future retirement income, report will help ensure that our Social Security
and survivor benefits. system remains the foundation upon which
lfany same-sea couples will continue to be economic security is built for all Americans and
denied-the family benefits that are available from will make it even stronger for those who most
Social Security to married heterosexual couples, depend on it.
CENTER FOR COMMUNITY CHANGE&OLDER WOMEN'S ECONOMIC SECURI-TY TASK FORCE 25
Mill
ENDNOTEStive Nita Lowey,would establish caregiver credits for
dependent relatives.
1 Social Security Administration. 8 Hartmann,Heidi,and Ashley English.2009."Older
Tat,July 2013 Table 2.<11ttp://vv\-,nussa.gov/policy) 1&'omen's Economic Security:A Primer."Journal of
dots/gnickEtcts/stat_snapsliot%index.htmIi'gs> IFimtert,Pol'litu•C&PoA0,30; 109-140.
Fischer,Jocelyn and(eff Hayes,"'file Importance 9 IXXTR analysis of the 2013 Current Population Sur-
of Social Security in the Incomes of Older Ameri- vey IlIUBIS data.
cans:Differences by Gender,Age,Race/Ethnicity, 10 1artmann and English."Older\k%oinen's Economic
and Marital Status" Washington,DC:Institute for Senuittc"109-140t
Women's Policy Research. 1 I Fischer and I Cayes."The Importance of Social Secu-
3 Elurnacher,Joan,Katherine Gallagher Robbins,Julie rity in the Incomes of Older Americans."
Vogtinan,and Lauren Frohlich.2013.Itrseane 12 Social Security Administration.2012."Social Security
(hegira Potreri tAmofiq ll'ontarr card Frmiliss 2000 2012. is Important to Womerl"
Washingto),DC:National Women's Law Center, 13 Hsrtnrmta and English."Older C\4xneri's Economic
4 Jasmine V.Tucker,Virginia P.Reno,and Thomas Security:"109-140.
N.Bethell.2011.ShenglbenirrgSocialSeirni>7,:1P/bat Do 14 Ibid.
15 CLS.Census Bureau, 4
11111eriewis l�zet?Washington,DC:National Academy rnerrcrr Fanlilzes and h rin�
of Social Insurance. ralrgentent:2010,Table Al
Rockevmoore,Alava AI.ant}Lori,Ateizhu.2011.PLtu 16 Ibid,
fora Nen,Fittrrre:T be hrJpad of,So6ial Sesw ly Reform 17 Hartmann and English."Older Women's Economic
on People of Color:Washington,DC:Commission to Security."109-140,
Modernize Social Securit. 18 U.S.Social Security Administration.2009.<-hwaal Sta-
Estes,Carroll,Terry O'Neill,and Heidi Iartmann. tistical Supplenterr:',1\7tttnlrer arrd rrverrrge rnorrh5l,belreJlt,by
2012.Brecrkirrg the Social Sect?tz�Gla,'s Cell i?g:A prgboval A e 0f l e'nefrt eviel lure.Dermlber•2003.Table 5.A 1.Notc:
t0 lvoderni y 11"olnenr Benefits.Washington,DC:Institute The Social Security Administration has discontinued
for Women's Policy Research. using the race:breakdown in the Annual Statistical
National Academy of Social Insurance.1009.Strength_ Supplement.
l zng Social Secur,'t}for T�ulrtetrtble Groff.c Intl : Ill Kajikozi,Kilolo.2002."Low-wage Earrtcrs:Op-
e p I //wvvw lions for Improving Their Retirement Income."In
na,i:org/research/2009)report-strength erring-social-
security-vulnerable-groups> D.Salisbury,P.Larson,&P.Edemaul.The Future of
6 As a result of the recent Supreme Court decision, Soriallrrsuiartiz IncreiventalAction orrwltdannaell RB forvl.
United Staler✓}1 hidsor-(2013),which held uneonstitu- Washington,D(':National Academy of Social Insur-
tional Section 3 of the so-called Defense of iWrriage nice.
Act,same-sea couples now have greater right,than 20 Roclteymoore and Lui.Plao fora\T,,)v Fietarre.
tliey did,notwithstanding tilelack of legislative nedon. 21 U.S Department of Labor Employee Benefits Secu-
7 For exaunple,in the 413"Congress,the Protecting rity Administration Advisory Council on Employee
and Preserving Social Security Act sponsored lay \Vclf uc and Pension Benefits Plans.?_OI O.Zvi parties
Senator Begich and Representative De tch would JO?11 Olilelr and llinorities in Ret?relrtent Sai Mgs" Washing-
scrap the payroll tax clip and require die use of CPI- ton'DC: U.S.Department of I:abor,
32
E to calculate cost-of-living adjustments,Represen- is eider,Rose AT,and Renee Ellis.2011.NttmSer,
tative Aloore'1 Social Security Enhancement and Illviit g,and I-)laattov Of Alari'raper'mild Divorces:2009.
Protection Act of 2013 would restore the student Washington,DC:U.S,Census Bureau,
benefit and improve the Special Nfiniinutn and estab- 23 Ere,Richard and D-Vera Cohn.2010,"Women,Men
fish a caregiver credit for those receiving tlae Special and the New Economies of 4l uriage."\�'asliington,
Minimum Benefi t vvhile removing the payroll tax DC:Pew Research Center.
cap.The Iteepuig Our St)cLd Security Promi,es Act 24 Holden,1<aren,C.and Angela Fontes.2009."1 ico-
sponsored by Senator Sanders and Representaative nomie Security in Retirement:How Changes in
DeFazi(,would lift the payroll tax on earners above Employment and Marriage Have Altered Retirement-
$250,000,The Strengthening Social Security Act of Related Economic Risks for L\%omen."Jow-norl of
2013,sponsored by Senator Markin and Representa-
I!%'iWlcot Polilie o"Polig 30(2-3):173 197.
tive Linda Sanchez in the House,would require the 25 National Gay and Lesbian Task Force."FAQ)Shect
Ilse of CPI-E,scrap the payroll tax cap,and provide on LGBT elders&Outing Age 2010."dews release,
an across die board benefit increase.Itcprescntative 2010,
Linda Suichez's Social Security Equality Act of 2013 26 )oughin,Charlie.2013,"Alinnesota AlaIces"I1uce:
would provide equal benefits for same-sex married Marriage Equality Passes North Star State."Human
couples and domestic partners. Rights Campaign.<htt1,://vvwxvlirc..org/blog/entryt
In the 112°'Congress,the Social Securit,Care-
giver Credit Act of 2011,sponsored by Representa- niorth-star-siatc>
__....----..._........ _._........_.._....
26 EXPANDING SOCIAL SECURITY BENEFITS FOR FINANCIALLY VULNERABLE POPUI.AfIONS
Will
27 Hunan Rights Campaign."Percent of Population 44 2010."Family income and Educational Attain-
Living in States with Marriage EqualiM,"I Iutnan went:1970-2009."PoetsecDnda?y Education Oppor=
Rights Campaign.Last modified 2013.<http://www, No.122.<htq)://wwwpostsecondary.org/
hrc.org/resources/entry/percent-of-population- lastl2/221_11-1opgt_l6.pdf>
living-iu-st ourceith-marriage-equality> 45 United States Census Bureau,2012.EducationalAttairt-
28 Human Rights Campaign."Same-Sex Relationship ment in the united States:2012."'1•able 1.Educational
Recognition Laws:State by State."Human Rights Attainment of the Population 18 Tears and Over,by
Campaign.bast modified 2013.<http://�v�vwhrc• :\gc,Sex,Race,and Hispanic Origin:2012."<http://
org/resources/entry/same-sex-relationship-recogni_ www:census.gov/hlxes/socdemo/education/data/
non-laWS-State-bY GT itt'.> cps/2012/tnbles.html>
29 Gates,Gary.J.and prank Newport."Special Report: 46 'I•he College Board,2012.'D-en&in College Priciqk 2012,
3.4%of U.S.Adults Identify as LGB'I'."Gallup <http://advocacy.collegeboard.org/sites/deEtult/
Politics.Last modified October 19,2012.<http:// files/college-pricing-2012-full-report_O.pdf>
www.gallup.com/poll/I58066/special-report-adults- 47 Hertel-Fernandez,Alexander.2010.`A New Dcal for
ic]entify-lgbtasp>> Young;\dults:Social Security Benefits for Post-Sec-
30 Lofquist,Daphne."S,-uxne-Sea Couple Households", nndarl'School Students."\rashitxlton,DC:National
fUnerican Connnututl,Surveg Br•ef•,United States Census Academy of Social Insurance:.
Bureau,September 2011. 48 Ibid,
31 Gates and Newport."Special Report:3.49!0 of U.S. 49 Federal Reserve Bank of New Yode,February 2013.
Adults Identify as LGB'1." (Quarterly Report on Hortcehold Deht and Credil.<htq)://
32 National Alliance for Caregivitng and HARP.2009. ww-\v.newyorkfed.org/research/national_economy/
Litregit=ing in the.U.S.Bethesda,NID:National Alliance houselnoldcredit/DistrictReport_Q42012.pdf>
for Carclriving,and iVashington,DC:tA:\Rl? 50 institute for College Access and Success,October
33 Ibid, 2012.Student Debt and the Ckiss c)f'2011.<http://wvilu
34 7arit,Steven.2006.-Asessmeut of Family Caregiv- ticas.org/files/pub/classof2C111.pdf>
ers:A Research Perspective."It,Family Caregiver 51 Ibid.
Alliance(I+.ds.),CareginerAgccs?vent.• I'oice,.and hems 52 Social Security r\dnninistration Office of the Chief
•otn the Freld Report from a National Consensus 1\ctuary."Social Security Beneficiary Data,December
ji
Developanent Conference(Vol.tI)(pp. 12-37).San 2012"<http://www.ssa.gov/Ot\C•I'/ProgData/ben-
Francisco:Family Caregiver Alliance. efits.httxil>
35 National Alliance for Caregiving and A•ARP 2009. 53 Reno,Virginia,and Joni Lavers.2009.Fixnag Social
Curekini gin the U.S.Bethesda,MD:National Alliance Serwibe Adepeale Benefit,Adegttale Financing.�Y%ashuxg-
for Caregiving,and Washington,DC:AARP, ton,DC:National Academy of Social Insurance,
36 I\\'PR analysis of the 2013 Current Population Sur- 54 Ibid,2.
vey IPI TR4S data. 55 <http://www.a E un
flcio.org/About/ xec-Cocil/
37 Federal Interagency Forurn on Agring-Related Staffs- EC-Statements/Builditng-On-1•he-Success-Of-Social-
tics.2011.OlderAmericarrs 201D:Key indicalors of IP;ell- Security>
Beh?g.<http://wwwagingstats.gov/agitigstatsdotnet/ 56 <htt)://ww\vnbcr.otg/programs/ag/rrc/rrc2012/
r\Iaan_Site/Data/2010_Docunnents/Does/OA_2010. slides/6.P3,o20Reno.pdf>
pdt> 57 Reno and Lavery Fixing Socx(l Seeus 1),2.
38 Social Security Administration.2011."Caregiver 58 I stcti_Carroll Terry O'Neill,and Heidi Hartmann.
Credits in France,Germany,and Sweden:Lessons for 2012.Breaking the Social Sea,rl,1�Glass Ceiling:A proposal
the Vol.71,No.4. to moderni!Za II%rarer'+Benefals.Washington,DC:Institute
39 Ibid, for'Wonxen's Policy Research.
40 Fultz,Elaine,2011,Pension Creddting for Caregivers: 59 Reno and Lavery.Fi.inS Social Seavily;S.
Policies•in Finland.,Frrtnce.Germany,Sweden,the Untied 60 Davis,Patricia A.Medicare:Part B Premiums. June
Khrgdonr,Canada,and jerbe u.\Xlashington,DC:Institute 11,2013.Congressional Research Service.
for Womeu's Policy Research. 61 Nonnemaker,Lynn,and Shelly Ann Sinclair.2009.
41 Lopresr,Pamela,and josh Bivens.2012."Labor Mar- "Medicare Beneficiaries'Out-of-Pocket Spending for
ket and Demographic Anal)=six:A National Picture of Health Care Services"Insight on the Issues 130.Wash-
Short-term Employment Growth by Skill."Washin ington,DC:AARP Public Policy Institute.
ton,DC:'Fhe Urban Institute. 62 In fact,the Census Bureau's new Supplement l
42 Hertel-Fernandez,Alexander.2010."t\New Dcal for Poverty)Measure shows a high poverty rate for the
Young Adults:Social Security Benefits for Post-Sec- elderly overall(15.1 percen tit,2011)compared to
ondary School Students."\Vashington,DC:National the standard mean(8.7 percent)largely,due to higher
lcademy of Social Insurance. health care costs.Department of IIealth and Ilurnan
43 Bureau of Labor Statistics,Current Population Sur Services,Administration on Aging 2012,A Profile q_f
vev 2012. Olde)-Atnericaw.2012. <http://www:a0a.g0v/A9-
ing_Stati-,6 cs/Profile/in dex.aspx>
CENTER FOR COMMUNITY CHANGE&OLDER WOiMEN'S ECONOMIC SE0.1RITY TASK FORCE ?7
63 Nonncinaker and Sinclair.."Afedicare Beneficiaries' 74 For example,Senator Harkin's(D-LA)"Strengthen-
Out-of-Packet Spending" ing Social Security Act of 2013"would elonimate the
64 Veghte et al."Should Social Security's Cost of-Living cap and count additional earning toward benefits at a
Adjustment Be Changed?". lover replacement rate.Representative Jan Scha-
65 United States Department of Agriculture.2012, kowsky(D-IL)has proposed to scrap the cap on the
"Official USDA Food Plans:Cost of Food at Hone employer's contribution in addition to raising the
at Four Levels,U.S.Average,March 2012."<httth:// -vage capon employees so that it would cover 90 per-
w�zr\v.cnpp.usda.gov/Pub&cations/FoodPlans 2012
/ J cent of a worker's earnings.The Social Security of-
Cos tofFoodltar2012.pdf> fice has also calculated the effects of eliminating the.
66 Reno and Lavers:Ftxneg Soei&Seewij,,2, cap and not counting the additional earning toward
67 Caldera,Selena."Social Security:A trey Retirement benefits as-well as eliminating the cap and counting;
Income Source forhfinorities,AARP Public Policy additional carninb toward benefits using due current
Institute.Fact Sheet 201,September,2010• formula.Strengthen Social Security-2013."Scrapping
68 Ibid, the Payroll Tax Cap is the Fairest VIq to Make Social
69 Halle,Michael,Cava B,I ewis,and Meena Seshamani. Security Solvent f>r the Next 75 Years"<htgh://
12 june 2009."Health Disparities:A Case for Closing wwWstrengdhensocialsecurity.org/sites/default/files/
the Gap'
" <http://w-vwsamissa.gov/Financing/ S crap_the_Cap_Fact_Sheet__2013.pdt--
post/Health-Disparities-A-Case-for-Closing-the-Gap. 75 National Committee to Preserve Social Security and
aspx> Medicare,hnmigration Reform and Social Security-.
70 Shelton,Alison,Social Security:The lltinimum Ben- htq)://ww\vncpssm.org;/PtiblicPolicy/Soci dSecu-
efit Provision.May 24,2012,Congressional Research iity/Documents/ArticlelD/1142./Itnnhigrrtion-
Ser-dce Reform-and Social-Sectuity
71 Ibid. 76 Ibid.
72 Reno and Lavery Fzxizzg Snc%zl Sscurrty.
73 Descriptions and calculations are based on those in
Reno and Lavery,F'lazrtg Social Seiu;ity.
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._._.
28 EXPANDING SOCIAL_SECURITY BENEFITS FOR FINANCIALLY VULNERABLE POPULATIONS