Statement of Anna Janis, National Grassroots Leader, United Seniors Association
Before the Subcommittee on Social Security,
House Committee on Ways and Means
Hearing on Social Security Improvements for Women, Seniors and Working Americans
February 28, 2002
I would like to begin by thanking you, Mr. Chairman, for holding a hearing on ways to improve Social Security for women, seniors and working Americans. As a National Grassroots Leader of United Seniors Association, I commend you for your energetic, constant support in strengthening Social Security. I encourage you in your leadership as Congress looks at how to improve and strengthen Social Security for seniors, our children, and our grandchildren. United Seniors Association stands for Uniting the Generations for America’s Future.™
My name is Anna Janis. I am retired and live in Louisville, Colorado.
Mr. Chairman, I am deeply concerned about the predicted failure of Social Security in 2016. I rely on Social Security for 67 percent of my income; the remaining 33 percent is derived from certificate of deposit interest. Since I am in the 65 + age group, I may not see the day when Social Security pays out more than it takes in. But I am still concerned about its consequences for my retirement, not only for the financial loss but also the loss of freedom, independence and control of my destiny.
I must admit that I did not think about Social Security and retirement until I was forced to at the age of 51. I am like millions of women who face similar or worse situations. It was necessary for me to enter the job market for the next 14 years until retirement and assume the obligation of a daughter entering college and a son entering high school. I realized that I could meet this commitment and plan for my retirement because the Social Security system was well funded.
The Dilemma for Widows/Widowers. Under any fair and rational system, a person who dies after years of contributing to the system would still receive substantial benefits. But the current Social Security system takes just the opposite approach. The death benefits are not enough to even pay for funeral expenses and then you receive very limited survivor’s benefits.
My experience has made me very passionate to preserve Social Security. Especially to have some peace of mind that I can count on receiving my Social Security check no matter what. The need is urgent and must be addressed immediately.
I know that comprehensive reform is going to take some time and should not be rushed into hastily. However, I believe it is time for Congress to give seniors the peace of mind they deserve by giving them a written guarantee for their Social Security benefits. Such a guarantee would reassure beneficiaries without making meaningful reform of the system more difficult or expensive.
I am disheartened that after paying Social Security taxes over my lifetime that I have no legal right to my benefits. Unfortunately, the U.S. Supreme Court ruled in Fleming v. Nestor (1960) that Americans have no legal right to their Social Security benefits.
I am aware that legislation has been introduced that would provide me with a written guarantee that no matter what, nothing will jeopardize my Social Security benefits. Not just for me but for all seniors so they will know they can depend on Social Security for income they can count on.
The Dilemma for the Divorced. Another problem is those who get divorced. If a wife chooses to be a homemaker, she (and the vast majority making this choice will be women) only qualifies for Social Security if she is married 10 years to a husband who is qualified. While this may have made some sense back in 1935 when Social Security was created, it makes no sense today when so many marriages end in divorce. I have heard that the average marriage only lasts about seven years – three years short of the ten required to qualify for Social Security.
Suppose a young woman gets married shortly after high school, works as a homemaker for nine years and gets divorced. Then she works for a few years and remarries for nine years and divorces again. She could easily be in her early 40s and still not qualify for Social Security. If she were to become disabled, she would not qualify for disability benefits under Social Security. The situation strikes me as completely unfair. At the very least, Congress should allow the time a homemaker is married to a worker paying into Social Security to count toward her qualifying time.
The Dilemma of a Bankrupt System. All of these problems are exacerbated by the financial crisis facing Social Security. All of you know that in about 15 years, Social Security will have to start paying out more than it takes in. That makes a lot of older workers and seniors nervous. Will the system be there for me when I need it? We must have a plan. The biggest disservice to seniors is to do nothing. Facts are facts, eventually the Trust Fund will be exhausted and the income from payroll taxes will only be enough to cover 73 percent of benefits. The problem will continue to get worse, in 2075 there will only be enough income from payroll taxes to cover 67 percent of benefits. There must be a sustainable plan, not only for seniors, but for our children and their children.
Personal Retirement Accounts Would Solve these Problems. The only proposal that will ensure that Congress does not raid the Social Security surplus is enactment of “Personal Retirement Accounts”. We must move from the present debt building system to one that is wealth building. These accounts could include an insurance premium that paid a substantial death benefit rather than the paltry $255 Social Security actually pays. And the account balance would go to the surviving spouse because he or she would have a private property right to the money. Contributions could be split between the husband and wife, either at the time they are made or in the case of a divorce.
Splitting the funds means a homemaker would get her fair share rather than being denigrated to a second-class citizen status.
Conclusion. Mr. Chairman, in light of these problems I have briefly highlighted what I and millions of women face, Congress can act now to greatly lift burdens from the shoulders of senior women across America. While the debate on over-arching reform of Social Security should continue energetically, I believe there are three actions that Congress can take immediately with substantial bipartisan support to very practically help tens of millions of women and men who now face financial hardship and fear.
1. Pass Social Security Benefits Guarantee legislation: Women make up a disproportionate percentage of seniors at or near the poverty level. In extraordinarily high numbers, they depend on Social Security. The fear of losing benefits in the future runs extremely high. Mr. Chairman, I commend you for championing such a significant piece of legislation for a real guarantee of Social Security Benefits for seniors.
2. Cut taxes on Social Security Benefits: In 1993, the deciding vote to greatly increase taxes on seniors’ Social Security benefits was cast by Vice President Al Gore. Since that year this tax has pulled more and more seniors into its clutches. Women, whose life expectancy is longer than that of men, will be taxed heavily on benefits for which they paid taxes their whole lives.
3. End the Earnings Limit on Seniors Age 62-64: Because women often enter retirement with lower average lifetime earnings, their Social Security often must be supplemented. For those women age 62-64 the tax punishment for working even a minimal amount in a year is still extremely heavy. Congress should end all earnings limits and lift this major financial burden from women and men.
Again, Mr. Chairman, thank you for your work on these important issues, and for inviting me to speak today on behalf of United Seniors Association.