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January 2005Alert: Privatization of Social Security hurts women mostWomen's long-term economic security will be in jeopardy if President Bush gets his way and privatizes Social Security. President Bush is expected to propose a drastic overhaul to the program that would allow younger workers to invest a substantial portion of their Social Security contributions into private accounts and cut benefits for future retirees. Despite claims by the Administration, privatizing Social Security would not benefit women of any age. Rather, diverting money out of the system will undermine the program and disproportionately harm women and minorities. Social Security is the only program that provides guaranteed retirement benefits for seniors — a critical feature that private investment accounts cannot promise. Although benefits are modest, Social Security is attributed with lifting nearly 12 million seniors out of poverty. In fact, the program was specifically created to help those most in need. The formula used to calculate retirement benefits provides a higher benefit, relative to earnings, to lower wage workers than to higher wage workers. A Critical Safety Net Social Security is a critical safety net for America's working families and is much more than just a retirement program. About 30 percent of Social Security beneficiaries receive disability or survivor benefits. It provides benefits for the young and old who have lost spouses; to children who lost a parent to death or disability; to workers who have become disabled; and to those who were disabled as a child. Privatizing Social Security would severely impact this critical aspect of the program. No Crisis for Social Security Although the program can be improved, Social Security is not facing a crisis. As it currently stands, Social Security will be able to provide full benefits to retirees for another 50 years, and after that will be able to pay 80 percent of benefits. Keeping Women out of Poverty Currently, women are the majority of Social Security recipients, representing almost 60 percent of all recipients age 65 and older. Without Social Security, 65 percent of African American women, 61 percent of Hispanic women and 52 percent of white women over age 65 would live in poverty. Women are at a greater risk for poverty in old age because of factors that take place during their lifetime. Typically, women earn less than men, are more likely to work in part-time or temporary positions, and move in and out of the workforce more often due to caregiving responsibilities. These factors often prevent them from building up substantial personal savings or participating in employer-sponsored pension programs. Social Security is often their only means of support during retirement. Furthermore, women typically live longer than men, resulting in them having to stretch their personal savings over a longer time period. Social Security provides women with a stable and secure income that does not run out if they live longer than expected. While younger women today are more aware of the need to plan for their retirement, they need to be particularly skeptical of Bush's plan. Privatizing Social Security would dismantle the foundation for women's economic security in retirement. In addition, it will leave younger workers with a hefty trillion-dollar deficit, possibly raise their retirement age, and cut their future benefits. Social Security is a critical issue this year. Stay tuned to AFSCME WomENews for more information on Social Security and what you can do to help ensure your future economic security. Raising the minimum wageIn November 2004, voters in Florida and Nevada overwhelmingly approved bills to increase their state's minimum wage. Both states increased the wage to $6.15 with automatic cost-of-living increases. The current federal minimum wage is $5.15, which does not keep up with inflation. As a result, people earning minimum wage have less buying power than they did in 1997, the last time the wage was increased. Today, full-time, minimum wage workers earn approximately $10,700 a year — $4,970 below the poverty line for a family of three and $8,150 below the poverty line for a family of four. Only 13 states and the District of Columbia have minimum wages higher than the federal level. Minimum wage is a working women's issue since the majority of minimum wage earners are women. Current ideas include raising the minimum wage to $7 over the next two years. An estimated 7.4 million workers would receive an increase in their pay if the minimum wage were to be raised. Of these workers, 4.5 million are women. In addition, an estimated 623,000 single mothers with children under 18 also would benefit from the increase. Five rights women could loseA looming vacancy on the Supreme Court could mean the loss of several key rights women now hold. Much of the progress that women have made is due to key Supreme Court decisions that have removed barriers and expanded opportunities. As Chief Justice Rehnquist's health continues to deteriorate, the Administration is building a list of conservative judges to fill his seat. The selection of a new justice could put these rights in jeopardy:
Just one vote could mean the difference between ensuring equal opportunity in the workplace or widespread discrimination. For more information, visit the National Partnership for Women and Families website. Working women: Speak up!This past year, Working Women Activists helped reach thousands of women across the country and encouraged them to vote. They participated in walks and phone banks and wrote close to 5,000 letters to women voters about important issues. Now, the AFL-CIO Working Women Vote program wants to hear from you! Let them know what you thought about the program, what worked and what can be improved. A survey can be downloaded as an MS Word document from the AFSCME Women website. The survey should be returned to the Working Women Vote program at: Working Women Vote, AFL-CIO, 815 16th St., NW, Washington, DC 20006. It can also be faxed to 202-508-6903 or emailed to WorkingWomen@aflcio.org. Don't keep a secret!The AFSCME WomEnews is a great resource for mobilizing union women and motivating them to take action in their communities and workplaces. Use the information contained in the newsletter to talk with leaders in your local or council, including your women's committee, to devise ways the union can address issues that are important to you. Possible options include forming a committee to explore the issue, hosting a public meeting or event about the topic, or talking with management to create ways to deal with the issue in the workplace. Distributed monthly, this newsletter should be shared with your union sisters and brothers. Or better yet — send us their names and email addresses at womensrights@afscme.org, and we will send them their own copy! Copies of earlier newsletters are available on the AFSCME website in the Women's Rights Publications section. WomENews is produced by the Women's Rights Department and written by Karen Swift.
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