Why Social Security Matters to Mothers

While coverage of the debate over the financial stability or instability of Social Security continues, no one talks about the real problem - the fact that our retirement systems are based on sixty-five year old values about men, women, work and money.

The minutes of the Social Security Council meetings held in the late 1930's reveal that Social Security was designed to discourage women from employment, to encourage men to work by linking benefits to income and years worked, and to send a message to women to stay married since their economic security was tied to being a dependent of a wage-earning husband. Sixty-five years later, one result is that we reward mothers, and anyone who gives up earnings in order to care for others, with financial dependency and increased risk of poverty in old age.

It’s time for a new set of values. Men and women ought to be able to share paid work in the way that works best for their families without penalty. Ownership of retirement assets acquired during a marriage should be shared equally by spouses while they are married and after a divorce. Social Security benefits ought to be related not only to paid employment but also to the unpaid work of caring for children, the elderly and the disabled.

This is not about Social Security OR private accounts. Mothers need Social Security to be healthy because it’s the only option for protecting those who sacrifice earnings to care for others. Mothers also need Social Security, current private retirement mechanisms and any proposed private accounts to be changed to protect their financial security and independence.

Make your voice heard by demanding changes to Social Security and private retirement systems that match these values!

Take Action!

Read the Commentary for Womens eNews by the President of Mothers & More.
Read an introduction to the problem.
Write a note to the President and your representatives on this issue.
Send a letter to the editor of your local newspaper.
Read a 10 page article that provides more detail about the history, the problems and the solutions.
Read a 7 page article that explains in an accessible way the basics of how Social Security works and concrete recommendations for mothers.
Check out a list of links to additional resources about Social Security.

Motherhood = The Missing Piece of the Social Security Conversation

	Social Security	Private Retirement Vehicles (Pensions, 401k, IRA)	Private accounts funded by diverted Social Security contributions (as proposed by President’s Commission)
Unpaid Care Work is a Contribution	NO Benefits are calculated using a person’s 35 highest earning years. Those who sacrifice earnings to care for others receive lower benefits.	NO	NO
Equity for Spouses	WHILE MARRIED - NO Lower earning spouse receives check for 1/3 of total benefit. Higher earner receives 2/3. DIVORCE - NO Community property laws (9 states) do not apply to Social Security benefits Divorce before 10 years leaves the lower earner with no claim to benefits earned during the marriage Divorce after 10 years leaves the lower earning spouse with 1/3 the total benefit and the higher earner gets 2/3. Divorce after 10 years and then remarry and the lower earner loses that 1/3 benefit.	WHILE MARRIED – DEPENDS Accounts are owned and controlled by the earning spouse, including the ability to make investment decisions without spousal consent. Accounts governed by federal law (ERISA), such as 401k's, do require spousal consent for withdrawals and for designating a beneficiary other than the spouse. DIVORCE – DEPENDS In the 9 community property states, private retirement accounts are split 50/50. In other states, the court decides. Rights to pension benefits can be allocated by courts in a divorce. Survivor’s benefits cannot be assigned to someone else without spousal consent.	WHILE MARRIED – NO Accounts would be owned and controlled by the earning spouse, including the ability to withdraw funds without spousal consent. The decision to divert Social Security contributions to a private account would not require spousal consent and impacts the spouse’s Social Security benefits. DIVORCE - YES Community property would apply to all these private accounts regardless of state of residence.
Equity for Equal Earning Couples	NO Single-earner couples receive more in benefits than dual-earner couples that have the same lifetime earnings.	YES Assuming the couples also invest the same amount in the same way.	YES Assuming the couples also divert the same amount of their Social Security Contributions and invest them in the same way.