From AFL-CIO

The biggest losers under President George W. Bush’s blueprint to privatize Social Security are women, who make up 58 percent of all Social Security beneficiaries ages 65 and older, according to a new study by the National Women’s Law Center (NWLC).   “Women rely more on Social Security for their retirement income than do men. In addition, women are much more likely than men to receive Social Security benefits as family members when a worker dies, retires or becomes disabled,” says the study, Social Security: Women, Children and the States.   The study takes a state-by-state look at how the projected benefit cuts under Bush’s plan would impact women, widows, widowers and their children and the states’ economies. About 24 million women, 18 million men and some 3 million children rely on Social Security retirement, survivor or disability benefits for economic security.       The study bases its calculations on a Congressional Budget Office (CBO) analysis of the recommendations made by the President’s Commission to Strengthen Social Security, Bush’s hand-picked 2001 panel charged with developing plans to privatize Social Security.   Under Bush-Backed Plan, Children Lose Nearly Half Their Social Security

Bush called one plan, “Plan B,” a good blueprint for privatization, says the NWLC report.   “A key element of the plan is a new formula that would reduce benefits below current-law levels for all future beneficiaries, including retired workers, widows, children and disabled workers. The CBO analyzed the likely effect of this plan, projecting that children born in this decade would likely receive 45 percent less when they retire than they are promised under current law, even when the proceeds from private accounts are included in the total,” the study says.   The NWLC findings show that nationally, the typical widow or widower receives an average $865 a month ($10,376 a year) in Social Security benefits.   Social Security Privatization Will Increase Poverty Among Elderly

If Bush’s 45 percent benefit cut “projected by the CBO were to take effect currently, the typical widow or widower would receive only $476 per month ($5,709 a year), even when the proceeds from private accounts are included. This amount is equal to only 65 percent of the poverty line,” the report says.   In addition to providing economic security through guaranteed benefits to working families, older Americans and people with disabilities, Social Security supports states by serving as a source of substantial income for residents and easing pressure on state budgets.   “Without the current level of Social Security spending, poverty among the elderly would rise, increasing demand for state services for the poor,” the study notes.   In 2002, more than $446 billion flowed to the states in Social Security benefits. If Bush’s 45 percent cut as projected by the CBO had taken effect, the economy would have lost some $200 billion. According to the study, that figure equals nearly 18 percent of state government expenditures in 2002.   The report also shows how the 45 percent benefit cuts affects working families, elderly women and state budgets in each state.