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August 28, 1998 Social Secuirty and Women I. Social Security and Women Today Do women win or lose from Social Security today? Life expectancy -- inflation protected annuity Work related -- PIA formula gives no credit for work in the home -- Describe historic earnings and participation trends Explain spouse benefits, widow benefits, dual entitlement Progressivity Rate of return calculations (1 percent V. 7 percent) vs. benefit levels ($838 V. $634) Is the current Social Security system fair to working women? Show benefit for equal income households with women who work at home V. households with women who work in market Incentives for specialization in home/market production. 5 early learn Why are elderly widows and divorcees poor? Large literature What is women's pension coverage like today and what will it be like in the future? Interaction with job composition trends, DB V. DC Impact of previous pension reforms on share taking joint and survivor pensions etc. II. Potential Reforms How would women fare in a system of individual accounts? Benefits more closely tied to earnings Life expectancy Investment behavior Divorcees and survivors Possible protections (progressivity, annuitization, earnings splitting, divorce rules) What's wrong with CATO study? How would traditional reform options differentially impact women? Any sort of benefit reductions Computation years Retirement age COLA Spousal benefits What Changes to the Current DB SS Could Help Women/ reduce elderly poverty Shifting benefits from married couples to widows. (Talk to Goss) Could we do something for divorcees? Give them more than 50 percent? Drop out years? Need other creative ideas.