Opening Statement of Hon. E. Clay Shaw, Jr., a Representative in Congress from the State of Florida,
 and Chairman, Subcommittee on Social Security

Hearing on Social Security Improvements for Women, Seniors and Working Americans

February 28, 2002

Welcome.  Strengthening Social Security is a goal of everyone in this room.   It is an important program that provides income security to nearly 46 million Americans. 

And, it is particularly important to women who live longer, earn less, take time away from the workforce to care for kids, and have less pension and asset income than men.  Social Security’s lifetime-inflation adjusted benefits, spouse and survivor benefits, and progressive benefit formula provide critical protections for women.  And without Social Security, more than half of elderly women would live in poverty.  Mrs. Janis, who will testify today, will share her perspective about the importance of Social Security in her life.

Although Social Security has successfully provided an effective safety net for two-thirds of a century, Social Security is facing serious financial challenges.  Beginning in 2016, payroll taxes won’t be enough to cover promised benefit payments, and Social Security will have to tap the Trust Fund to continue full benefit payments. 

By 2038, the Trust Fund will be exhausted, and the payroll taxes taken out of the wages of our hard-working kids and grandkids will only be enough to cover 73% of benefits, and even less than that in future years.  If we fail to enact a plan to save Social Security, the consequences would be devastating for millions of Americans, especially women.

For these reasons, restoring Social Security’s solvency for the 21^st century and beyond is a national priority for the public, Congress, and the President.  We need to set aside politics and demagoguery and get down to the business of saving Social Security. 

Our focus today however, is to find common ground, in advance of major reform, to begin improving the program by enhancing Social Security benefits for women, assuring seniors that promised benefits will be paid, and better educating the public.

There are numerous proposals for improving women’s benefits, and while some proposals would cost tens of billions of dollars and increase the threat of  insolvency, there are some inequities in the program that could be addressed now without jeopardizing the financial position of the Trust Funds.  I believe women should not have to wait for comprehensive reform for us to make helpful changes. Today we will hear from several experts who will offer options for us to explore.

As we look at ways to improve Social Security for women, we must also assure seniors that strengthening Social Security does not mean weakening their economic security, and we must educate the public about Social Security’s financial future. 

Conflicting facts reported in print media and television has made our job difficult.  It has fueled seniors' concerns that cuts to their benefits are imminent, despite commitments by the House of Representatives and the President that their benefits will not be touched. 

Today, we will hear ideas on how to express the commitment to preserve seniors' full benefits and how to improve information provided to the public in the Social Security Statement and the Trustees Report.

I hope areas of agreement, such as improving women’s benefits, will form the foundation for the kind of bipartisan partnership we'll need to save Social Security.

This Subcommittee has a history of working on a bipartisan basis to change people’s lives- by removing barriers so that individuals with disability could return to work, removing the earnings penalty for seniors, and combating waste, fraud and abuse.  I hope we can continue in that spirit, build on our past successes, and responsibly address ways to strengthen Social Security for the next generation.