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1991 ADVISORY COUNCILS * SOCIAL SECURITY Social Security and the Future Financial Women Security of December 1991 Washington, DC Social Security and the Future Financial Women Security of OAS Library C2-07-13 A Report of the 7500 Security Blvd. mv&P£j££tft Baltimore. Advisory Council on Social Security December 1991 Washington, DC i MEMBERSHIP OF THE 1991 ADVISORY COUNCIL ON SOCIAL SECURITY Chair Deborah Steelman, Esq. Attorney-at-Law Members G. Lawrence Atkins, Ph.D. The Honorable James R. Jones Director of Employee Benefit Policy Chairman and Chief Executive Winthrop, Stimson, Putnam & Officer Roberts American Stock Exchange Robert M. Ball John Meagher Former Commissioner of Partner Social Security LeBoeuf, Lamb, Leiby & McRae Philip Briggs Paul H. O'Neill* Vice Chairman of the Board Chairman and Chief Executive Metropolitan Life Insurance Officer Company Alcoa Lonnie R. Bristow, M.D. Arthur L. Singleton AMA Board of Trustees Consultant on Government Theodore Cooper, M.D. John J. Sweeney Chairman and Chief Executive International President Officer Service Employees International The Upjohn Company Union Professor John T. Dunlop Donald C. Wegmiller & Harvard University President Chief Executive Officer Health One Corporation Karen Ignagni Director Resigned, replaced by Department of Employee Benefits John Meagher. AFL-CIO ii STAFF OF THE 1991 ADVISORY COUNCIL ON SOCIAL SECURITY Ann D. LaBelle, D.D.S. Executive Director Barbara Cooper Olga Nelson Adele Eley Mary Sue Olcott Robert Lagoyda Teddi Pensinger Arta Mahboubi Virginia Reno Susan V. McNally Nancy Row Brigitta M. Mullican Michael D. J. Zambonato iii PREFACE This report on Women and Social Security was prepared in response to concerns raised by Members of the 1991 Advisory Council on Social Security regarding the treatment of women by Social Security. In addition, the Council received testimony from the Older Women's League and other women's organizations at one of its regularly scheduled meetings and at its hearings. Based on these testimonies, and other concerns raised by women's groups, the Council decided: (1) to cover the issue ofolder women and income security at its field hearings and (2) to have the staff issue a report on women that is separate from both the final report and the report on the field hearings. This report lies entirely within the statutory mandate of the Advisory Council as well as the Secretary of Health and Human Services' charter to the Council. Section 706 of the Social Security Act requires the Secretary of Health and Human Services to appoint an Advisory Council on Social Security every four years for the purpose ofreviewing the status of (1) the Social Security and Medicare trust funds in relation to the long-term commitments of these programs; (2) the scope ofcoverage; (3) the adequacy of benefits; and (4) all other aspects of these programs, including their impact on the public assistance programs under the Social Security Act. The Secretary of Health and Human Services, Dr. Louis W. Sullivan, appointed the Council and named former White House official Deborah Steelman to chair v the group. He noted in his charge to the Council that the Council may address the following issues in addition to its statutory charge: • The adequacy of the Medicare program to meet the health and long-term care needs of our aged and disabled populations, the impact of Medicaid on the current financing structure for long-term care, and recommendations for more stable health care financing for the aged, the disabled, the poor, and the uninsured; • Major Social Security financing issues, including the long-range financial status of the program, the relationship of Social Security incomes and outgo to budget deficit-reduction efforts under the Balanced Budget and Emergency Deficit Control Act of 1985, and projected buildups in the Social Security trust funds; and, • Broad policy issues in Social Security such as the role of Social Security in overall U.S. retirement income policy. In part, this report on women and Social Security fulfills the statutory mandate and the Secretary's charter by focusing on the scope and adequacy of benefits of the Social Security program as they relate to women; the impact on the public assistance programs under the Social Security Act; and the role of Social Security in overall U.S. retirement income policy for women. The Council would like to thank Dave Kennell, Lisa Alecxih, and Kevin Coleman from Lewin/ICF, who largely authored the report. Contributions to this report were also made by Michael Zambonato. In addition, comments, advice, and information were provided by the following offices at the Social Security vi Administration: The Office of the Actuary, The Office of Legislation and Congressional Affairs, and The Office ofResearch and Statistics. Without these people and their immense support, this report would not have been possible. Ann D. LaBelle, D.D.S. Executive Director Advisory Council on Social Security