bpw_fact sheets 2009

8/14/2019 BPW_Fact Sheets 2009

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The Paycheck Fairness ActFact Sheet

Forty-six years after President John F. Kennedy signed the Equal Pay Act ensuring equal pay for equalwork, the Census Bureau reports that, on average, full-time working women earned 78 cents to everydollar earned by men. The Lilly Ledbetter Fair Pay Act, signed into law on January 23, 2009, ensuresthat victims of discrimination have fair access to the courts, but additional legislation is needed to closethe persistent gap between mens and womens wages.

Action N eeded

Business and Professional Women urges Senators to co-sponsor and support the PaycheckFairness Act(HR 12/ S 182). The House of Representatives passed the Paycheck Fairness Act inJanuary 2009, but it will only be brought to a vote in the Senate if more co-sponsors are added.

The Paycheck Fairness Act will strengthen the Equal Pay Act in w ays necessary to guaranteethat women workers are not shortchanged solely because of their gender.

The Paycheck Fairness Act will: Close a Loophole in the Employer Defense PFA requires employers to demonstrate that wage

gaps between men and women doing the same work are truly a result of factors other than sex.Wage differentials based on merit, quantity of productivity and seniority are still allowed under thelaw.

Prohibit Employer Retaliation - PFA prohibits retaliation against workers who inquire aboutemployers' wage practices or disclose their own wages.

Clarifies What Establishment Means When Comparing Wages - PFA clarifies that acomparison between employees to determine fair wages need not be between employees in the

same physical place of business. Increases Training, Research, and Education - PFA provides for increased training for EEOC

employees to help them identify and respond to wage discrimination claims. It also calls forenhancing research and education programs at the US Department of Labor (DOL), includingprograms to research ways to eliminate gender-based pay disparities and provide information toemployers to assist them in eradicating such disparities.

Improves Collection of Pay I nformation by the EEOC - PFA requires the EEOC to developregulations directing employers to collect wage data, reported by the race, sex, and national origin ofemployees. These data will enhance the EEOCs ability to detect violations of law and improve itsenforcement of the laws against pay discrimination.

Reinstates Pay Equity Program s and Enforcement at the Department ofLabor PFArequires the DOL to reinstate activities that promote equal pay, such as: directing educational

programs, providing technical assistance to employers, recognizing businesses that address the wagegap, collecting wage-related data, and conducting and promoting research about pay disparitiesbetween men and women.

Develops Voluntary Guidelines for and Recognizing Model Employers - PFA establishes acompetitive grant program to develop salary negotiation training for women and girls.

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Key Points

Wage disparity persists, which is w hy w e must strengthen laws against w age discrimination.

In 2007, the Census Bureau reported that women w orking full time earn on average 22% lessthan their male counterparts. In other words, for every dollar earned by a man, a woman

working just as hard earns only 78 cents. African American women earned 66 cents andHispanic women earned 54 cents to every dollar earned by men.

Wage disparity persists across all educational levels and in all st ates. In 2003 the Government Accountability Office (GAO) found that women managers consistently made

less than their male counterparts and in seven of the 10 management positions in differentindustries, the pay gap had increased between 1995 and 2000.

Among workers with a high school diploma, womens median annual income was $19,175, compared to$28,827 for men almost $10,000 less. Among workers with a bachelors degree, womens medianannual income level was $32,394, compared to $50,527 earned by men roughly $18,000 less.

Eliminating the w age gap is good for families and for business.

If the wage gap was eliminated, annual family incomes would increase by $4,000. Thiswould cut the poverty rate by half! Working families lose $200 billion in income annually to thewage gap.

Pay equity would notlead to a reduction in mens wages. Federal law prohibit s reducing pay forany employee to remedy discrimination.

Evidence across the world shows that increases in womens wages as a result of pay equity efforts donot cost employers more, and implementing pay equity does not unnecessarily disrupt the economy.In fact, forward looking employers recognize that eliminating pay differentials makes good business

sense and that pay equity can help with competitiveness, worker retention, andproductivity.

The wage gap has a long term effect on wom ens economic security.

The wage disparity grow s as women get older. From ages 19 to 24, women are paid 94% ofwhat their male counterparts receive, but by the time these women reach the ages of 46 to 64, theywill earn only 68% of what men are paid. When they retire, women who have worked full time willreceive $8,000 less annually in retirement income than their male counterparts.

The wage gap is not a matter of personal choice.

The 2003 GAO study concluded that even after accounting for choices such as work patterns andeducation, women earn an average of 80 cents for every dollar that men earn. Moreover, the GAOhas found that women with children earn about 2.5 percent less than women without children, whilemen with children enjoy an earnings boost of 2.1 percent, compared with men without children. Somothers pay a penalty for their choices while fathers receive a bonus.


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Myths and Facts about the Paycheck Fairness Act

Despite prior legislative attempts to close the wage gender gap, women are still paid only 78 cents forevery dollar paid to men. The Paycheck Fairness Act (PFA) will strengthen existing laws and introducenew tactics to end this form of discrimination against women. Unfortunately, there are several commonmisconceptions about the PFA.

MYTH: The PFA wil l bankrupt employers because it would eliminate the caps on punitive*and compensatory* damages*, which would resulting in an explosion of court cases,and would allow class-action lawsuits.

FACT: This is false.

The PFA will simply extend to victims of sex-based discrimination the same standards for classaction lawsuits and the same options for damages that are currently available in cases of race-

based discrimination.

Under our current laws, victims of race-based discrimination can sue for compensatory andpunitive damages, and the courts are free to award whatever amount they deem just. Victims ofsex-based discrimination dont have the same rights. They can only sue for back wages, andtheir recovery is limited to the least possible amount they might have earned.

This is so profoundly unfair that it actually makes it worthwhile for an employer to pay a womanless than her male counterparts, and gamble that she wont sue for back wages in the future. Ifshe doesnt sue, the employer keeps the savings; if she does, the employer only has to dole outthe amount that should have been paid in the first place. There is no downside to employers forsex-based wage discrimination.

Why should women who are the victims of sex-based wage discrimination have fewer rights thanemployees who are subjected to race-based discrimination? The answer is: they shouldnt. ThePFA corrects this injustice by eliminating the restrictions that treat sex-based wage discriminationas a relatively trivial matter.

Race-based discrimination damage awards have not bankrupted employers; there is no reason tothink things will be different when this remedy is extended to victims of sex-based discrimination.Besides, every employer has a surefire way to protect him- or herself from discriminationlawsuits: dont discriminate.

MYTH: The PFA is unfair to employers because they w ill have to pay damages even if the paydisparity w as unintentional.


Punitive damages are only awarded if the plaintiff can demonstrate that the employer acted withmalice, or reckless indifference.

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1718 Eye Street, NW #148 ph: 202/293-1100 Washington, DC 20036 fx: 202/861-0298


MYTH: The PFA would unfairly penalize employers who pay w orkers at some worksites morebecause the cost of living is higher in that location.


Under the PFA, employers can justify wage disparity based on objective and identifiable

differences in the cost of living. The PFA clarifies that a plaintiff can only compare her pay tothat of an individual doing the same job at a location within the same county.

MYTH: The PFA is unfair to employers because it would impose comparable w orthguidelines that don t consider the market forces that drive employers to offer highersalaries for certain jobs.


The PFA does not address comparable worth or apply any such guidelines to employers.

MYTH: The PFA w ould re-impose debunked statistical analyses and auditing methods.


The PFA would require the EEOC to develop regulations directing employers to collect wage data,aggregated by the race, sex, and national origin of employees.

*Definitions

Damages: Monetary compensation that is awarded by a court in a civil action to an individual who hasbeen injured through the wrongful conduct of another party. Damages attempt to measure in financialterms the extent of harm a plaintiff has suffered because of a defendant's actions.

Compensatory damages: Compensation awarded by the court that is intended to restore what aplaintiff has lost as a result of a defendant's wrongful conduct.

Punitive damages: Compensation that is awarded not to compensate a plaintiff for injury suffered butto penalize a defendant for particularly egregious, wrongful conduct.

Caps on damages: A cap on damages sets an artificial limit on the amount that an individual canrecover, essentially tying the hands of juries and judges.


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Healthy Families ActFact Sheet

Nearly half (48%) of private-sector workers dont have a single day of sick leave to care for their ownhealth, or that of a family member. Nearly one quarter of working parents with a child three years old oryounger cant take even one day off to care for that child without losing pay. Almost 40% of all low-income workers lack any form of paid leave.

Currently, no state or federal law guarantees workers a minimum number of paid sick days. The lack of

this benefit has forced millions of Americans to choose between their paychecks and their own health orthe health of a family member.

Action Needed

Business and Professional Wom en encourages Members of Congress to co-sponsor the

Healthy Families Act when it is reintroduced in the 11 1th Congress.

The Healthy Families Act will guarantee w orkers paid sick leave in order to:

Recover from serious illness or injury, Provide care for a sick or disabled child, spouse, or parent, Attend medical appointments, and, Seek assistance and recover from incidents of domestic violence, sexual assault, and stalking.

The Healthy Families Act protects both employees and employers. It will:

Guarantee full-time workers seven job-protected paid sick days per year, and a prorated numberof hours or days for part-time workers (those who work less than 30 hours per week),

Only apply to employers with fifteen or more workers, Give employers the option of requiring certification of illness or injury by an appropriate medical

or legal professional for any absence longer than three days, and

Have no effect on employers who already offer the benefits described in this legislation.Key Points

The American family has changed dramatically in the last 50 years. Employee benefits shouldreflect the way w e live now not a half-century ago.

Back in the 1960s, the overwhelming majority 70% -- of American families with children had amother who stayedhometo provide round-the-clock childcare . Today, that statistic isreversed: two-thirds of families with children have either two employed parents, or a single employedparent, most of whom now w ork full-t ime.




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Not only are many more parents working, but working parents today workmore hours thantheir counterparts of a half century ago. In addition, a growing number of workers are responsiblefor thecare of elderly or disabled family members . For victims ofdomestic violence orsexual assault, many courts and agencies that provide assistance only conduct business duringregular office hours.

Unfortunately, many private sector employers are still using benefits policies that were developedfo rthefamily of yesterday, not today . In the past, employed fathers generally did not need paidleave to take care of personal and family matters: for that they depended on non-working mothers.Today, many employees are forced tochoose between taking unpaid leave and possible jobloss, or the health and safety of themselves and their fam ilies.

Archaic leave policies hurt parents and children alike. The Healthy Families Act is a much-needed change.

The lack of paid sick leave particularly hurts working mothers, who still bear a disproportionateresponsibility for care of the family. Half of all working mothers report that they have had tomisswork to care for an ail ing child. Of those mothers, half reported that they forfeited their salariesto do so.

The lack of paid sick leave also hurts men. While single working mothers outnumber single workingfathers, 30% of working fathers report having had to take unpaid leave to care for themselves or afamily member. Due to lingering stereotypes about what are and are not proper gender roles, somemen report having been denied leave to care for a family member: they are supposed topu ttheir jobs first. Conversely, working mothers are sometimes viewed as inherently less committedto their jobs because they are supposed to put their families first.

The lack of paid sick leave leads to present eeism, and that is bad for business.

Presenteeism is the practice ofemployeescoming to work w hile i l l, thereby infecting otheremployees. Ultimately, it costs businesses less to allow a sick person to stay home with pay than it

does if the sick worker causes the illness of the others in the workplace. The AmericanProductivity Audit and studies in the Journal of Occupational and Environmental Medicine, theEmployee Benefit News, and the Harvard Business Review show that presenteeism is a large drainon productivity larger than that of either absenteeism or short-term disability.

America is one of the very few countries in the world that do not guarantee paid mat ernityor sick leave. American fam ilies deserve the best not the worst w orkplace policies.

168 countries but not the United States have laws granting women paid maternity leave.The only other countries that do not guarantee this are Lesotho, Liberia, Papua New Guinea, andSwaziland.

137 countries but not the United States have laws that guarantee workers paid sick leave. 39 countries but not the United States guarantee paid leave to care for a sick child .




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Federal Employees Paid Parental Leave ActFact Sheet

As the nation's largest employer, with over 2.7 million employees across the country, the federal governmentshould be a leader in family-friendly workplace policy. Most people would be surprised to learn, however, thatthe federal government does not currently provide any paid parental leave for its employees. Employees mustcobble together accrued annual and sick leave if they want to receive a paycheck while they are out caring fortheir families.

Almost all full-time federal employees are eligible to take up to 12 weeks off to care for a newborn oradopted child, as specified in the Family and Medical Leave Act. This leave, however, is unpaid: if theemployee cannot do without a paycheck, she or he must use up whatever sick and annual leave has beenaccrued.

Parents who have already used their time off to cover prenatal medical appointments, and new employeeswho have not accrued much time, are forced to choose between collecting a desperately needed paycheckor caring for their familys most vulnerable member.

Action Needed

Business and Professional Women encourage Mem bers of Congress to support and become aco-sponsor of the Federal Employees Paid Parental Leave Act (S 354/ HR 62 6).

This legislation was introduced in Congress by Representative Carolyn Maloney (D-NY) and Senator JimWebb (D-VA).

The Federal Employees Paid Parental Leave Act will guarantee four week s of paid leave for federally-

employed mothers and fathers upon the birth or adoption of a child.

This paid leave will ensure that parents can spend at least four weeks at home with a new child withoutsuffering devastating financial consequences. As more working families struggle to make ends meet duringthis devastating economic downturn, it is especially important to ensure that workers are not forced tochoose between their mortgage and their children.

Key Points

As the nations largest employer, the Federal Governmen t should be a leader in family-friendlyworkplace policy. But right now , it lags far behind the private sector and the standards set forworkers in m any other countries around the world.

A 2007 study by the Congressional Joint Economic Committee showed that Fortune 100 companiestypically offer six to eight weeks of paid parental leave to new mothers and two weeks to new fathers.

The U.S. is the only industrialized country that does not offer universal paid parental leave to itscitizens. The European Union guides its 27 member states to offer a minimum offourteen weeks ofpaid maternity leave, and most countries exceed that amount.




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Paid parental leave ensures that parents can take time off to care for a new child wit houtsuffering devastating financial consequences. There could not be a worse time to ask parents tochoose between their job and their new child than during an economic downturn.

The current practice of saving unused vacation time and sick days may work for the lucky family whonever gets sick, but it is unrealistic for most families.

A general lack of infant care requires that working parents take leave to care for their newborn.Government-sponsored day care facilities, for example, typically do not care for infants younger than10 to 12 weeks old.

For the many workers who are either at low pay grades, haven't built up their vacation time, orhave had to use up their sick days before delivery, having a child means that they will either loseseveral w eeks of pay that is crucial to their family's survival, or return to work imm ediately afterthe child is born.

The American family has changed dramatically in the last 50 years. Federal employee benefitsshould reflect the way w e live now not a half-century ago.

Back in the 1960s, the overwhelming majority 70% -- of American families with children had amother who stayedhometo provide round-the-clock childcare . Today, that statistic isreversed: two-thirds of families with children have either two employed parents, or a single employedparent, most of whom now w ork full-t ime.

Not only are many more parents working, but working parents today worklonger hours thantheir counterparts of a half century ago.

In the past, employed fathers generally did not need paid leave to take care of a newborn: for thatthey depended on non-working mothers. Times have changed; so should our benefits policies.

Offering paid parental leave will help the federal government recruit and retain dedicated and

talented workers.

At a time when the federal government is struggling to recruit and retain qualified employees, thegovernment should be offering benefits that can compete with the private sector.

The federal workforce is aging and family-friendly benefits could help attract younger workers. Theaverage age of federal workers increased from 43.6 years to 46.7 years from 1994-2004.

The Federal Employees Paid P arental Leave Act is budget neutral.

The Congressional Budget Office (CBO) has determined that this legislation ispay-go neutral, meaning it would not affect direct spending or receipts. Instead, it would draw on the $190 million thatfederal agencies save when employees take unpaid leave. The Joint Economic Committee estimates

that this is equal to less than one-tenth of 1% of the federal payroll.

Paid parental leave wil l save the federal government m oney.

The agencies will retain more employees, which will save turnover costs, aid in recruitment, andimprove productivity and employee morale. The Congressional Joint Economic Committee estimatesthat it costs nearly three times as much to replace an employee than to her or him with four weeks ofpaid parental leave.


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The Women Veterans Health Care Improvement ActFact Sheet

Over 350,000 women serve in the armed forces, accounting for approximately 15% of active dutypersonnel, 15% of Reserves, and 17% of the National Guard.

Today, there are approximately 1.7 million total women veterans, and it is projected that the number offemale veterans who use the Veterans Administration system will double in the next five years.

Women veterans have unique mental and physical health care needs that the VA is currently under-prepared to handle. Among the issues women disproportionately face upon returning home are theeffects of sexual trauma, childbirth and childcare, eldercare responsibilities, and the difficulties of beingless likely to have military service recognized or appreciated.

Action Needed

Business and Professional Wom en encourages Members of Congress to co-sponsor theWomen Veterans Health Care Improvement Act (HR 1211 ).

Introduced by Rep. Stephanie Herseth Sandlin (D-SD), HR 1211 will equip the VA for the immediate andlong-term health needs of women veterans, particularly those who served in Iraq and Afghanistan.

The Women Veterans Health Care Improvement Act will strengthen the VA by requiring it to:

Expand coverage for infants born to women veterans who receive maternity care from the VA; Implement a program to train and certify mental health professionals to care for women with

Military Sexual Trauma (MST) and Post Traumatic Stress Disorder (PTSD);

Initiate a pilot program to provide childcare services to women veterans who seek care formental health or other intensive needs;

Initiate a pilot program to provide readjustment counseling to women veterans in group retreatsettings;

Hire a full-time wom en veterans program manager at all VA medical centers, and require theinclusion on VA advisory boards of women recently separated from service;

Authorize two studies, one by the VA and DoD and the other by the Institute of Medicine, of womenveterans of Iraq and Afghanistan to assess the impact of their experiences on their physical,mental, and reproductive health;

Conduct a comprehensive assessment of the barriers women veterans face in accessing VAcare, with special attention to the availability ofchildcare and concerns for personal safety, aswell as the effectiveness of existing program s geared towards women veterans.




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Key Points

With increasing numbers of w omen now serving in uniform, the challenge of providing

adequate health care services for wom en veterans is overwhelming.

Women veterans who use the VA are, on average, younger than male veterans. The average age ofwom en veterans who use the VAis 49.5 years; the average age of their male counterpartsis 61. The overwhelming majority (85%) of women veterans of Iraq and Afghanistan are under 40.

Today, there are approximately 1.8 mill ion wom en veterans. In the next five years, the numberof women veterans who need VA services wil l double, as will the diversity of their medicalconditions. It is projected that the number of female veterans who use the VA system will double inthe next two to four years.

42% of the women veterans who served in Iraq and Afghanistan have enrolled in the VA. It isimperative that theVA build up its capacity so that all veterans can receive the help that theyneed and deserve.

The VA is structured to serve what historically has been an almost entirely male population

of veterans. The increasing number of women veterans have many of the same needs astheir male count erparts, but they also have needs that are particular to their experience aswom en. They are more l ikely to:

have experienced sexual trauma; have childcare and eldercare responsibilities (53% have dependents at the time of military

separation);

have mental health needs in combination with physical ailments; use outpatient services; and use fee-based care.We do n ot yet know the ramifications of combat service to w omen veterans health, becauseno long-term wom ens health studies have been conducted. It is imperative that we beginsuch studies now.

BPW Foundation research show that the experiences of women veterans are unique and caution notto take a one-size-fits-all approach.


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Military Domestic and Sexual Violence Response ActFact Sheet

Domestic violence and sexual assault are pervasive and serious problems throughout all branches of themilitary.

A 2003 survey financed by the Department of Defense (DoD) found that nearly one-third of military womenhave been the victim of rape or attempted rape during their tenure in the armed forces.

While the DoD has made efforts to improve prevention and response to domestic and sexual violence,the services available to victims remain incomplete and inconsistent among the various branches of themilitary.

DoD policies are not codified, and, arguably worst of all, women in the military who experience sexual

assault or domestic violence do not have many of the protections that are afforded to their civiliancounterparts.

Action Needed

Business and Professional Wom en encourages Members of Congress to co-sponsor andsupport the Mil itary Domestic and Sexual Violence Response Act (HR 840).

Introduced by Rep. Louise Slaughter (D-NY), the Military Domestic and Sexual Violence Response Act isdesigned to protect our soldiers and their families from domestic violence and sexual assault.

This comprehensive bill will codify policies for preventing, responding, treating, and prosecuting cases offamily violence, domestic violence, sexual assault, and stalking in the military and among military

families.

The Military Domestic and Sexual Violence Response Act will:

Strengthen provisions for the prosecution of assailants; Create confidentiality protocols to protect victims; Fund prevention and deterrence programs, and victims services; Establish in the DoD an Office of the Victims' Advocateto help victims access services and obtain

justice;

Require the DoD to develop programs for prevention and deterrence, victims assistance, andfamily advocacy.




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Key Points

We h ave lost, and wil l continue to lose, valuable members of the military because they are

the victims of domestic violence and sexual assault.

Sexual assault, sexual trauma and domestic partner abuse is pervasive in the military. According to the VA, 19% of women who have sought health care in the VA were diagnosed as victims

of Mil itary Sexual Trauma.

A 2003 survey financed by the Defense Department found that nearly one-third of wom en reportedbeing the victim of rape or attempt ed rape during their tenure in the military.

In March 2007, the DoD released their third annual sexual assault report, which stated that there were2,947 allegations of sexual assaults reported in 2006; a 24% increase from 2005.

Reports ofmilitary sexual trauma increased from 1,700 in 2004 to 2,374 in 2005, according to theDepartment of Defense Sexual Assault. In 2004, the DoD reported 9,000 incidents of spousal abuse.

There are numerous barriers within the m ilitary to providing sexual assaults services.

Often, victims cannot access even the most essential care for fear ofrepercussions fromfellow soldiers and/or commanding officers, stigma and shame -- or simply because they unawareof what resources are available.

In 2008, the Government Accountability Office reported that 52% of service members at 14installations who had been sexually assaulted in the preceding year did not report the attacks,generally because of one or more of these barriers.

Our armed forces should set the gold standard for treatmen t of victims of domestic violence andsexual assault, and prosecution of their assailants. Right now , they dont.

While DoD has been making efforts to improve its prevention and response to domestic and sexualviolence, services remain incomplete and inconsistent among the various branches.

There have been reports that victims advocates have been denied the resources they need to dotheir jobs, and in some instances have been forced off bases altogether.

DoD policies do not offer victims who serve in the military the same protections that theircivilian counterparts have.

Military law should be on par with civi l ian law when it comes to prosecuting domestic violence andsexual assault.


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Retirement SecurityThe Automatic IRA Act and the Retirement Security for Life Act

Fact Sheet

Retirement security has long been a concern for working women. Americans are living longer especiallyAmerican women. Women live longer, earn less money, spend less time in the workforce accumulatingSocial Security benefits, and spend fewer years vested in an employer-based retirement plan.

Together, these trends mean women are at an increased risk of living in poverty after they reachretirement age.

Action Needed

Business and Professional Women encourages Members of Congress to support theAutomatic IRA Act and the Retirement Security for Life Act as part of a multi-pronged

approach to ensuring wom ens retirement security.

The Automatic IRA (Auto-IRA) Act

Why w e need the Auto-IRA:

Roughly half of U.S. workers are not offered a 401(k) or any other type of employer-sponsoredretirement plan. The Auto-IRA is a simple, low cost way to provide employees a real retirementsavings tool.

Studies show that automatic enrollment significantly increases participation in retirement plans.The Automatic IRA Act wil l:

Amend the tax code to allow employees not covered by qualified retirement plans to save forretirement through automatic payroll deposit IRAs;

Facilitate saving by the self-employed; and Assist employers by providing those who offer the Auto-IRA a tax credit to help cover the cost of

administering the plan.

The Retirement Security for Life Act

The Retirement Security for Life Act will help Americans maintain their standard of livingthroughout retirement by proving a new tax incentive to purchase retirement vehicles, such asannuities, that provide a steady stream of income for life.

It will allow individuals to not pay federal taxes on one-half of the income generated by annuitiesthat promise lifetime payments.

For an average taxpayer in the 25% tax bracket, the proposed incentive would provide up to a$5,000 tax benefit each year.




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Key Points

Americans are living longer than ever -- especially wom en.

Women have longer life spans than men, meaning that a woman can expect to live five or moreyears than a man in retirement. In fact, one in three 65-year-old women today will live into their 90s.

Wom en face greater economic uncerta inty in retirement than men and, on average, theyllenter retirement with considerably less savings than men.

The persistent wage gap means women often earn less than men for every dollar a man earns,women are paid roughly 78 cents. Women are frequently the primary caretakers of their families,which means they are more likely than men to need to take unpaid leave or to stop working.

This means wom en have less money to save and accumulate fewer benefits from SocialSecurity and employer-based retirement plans. Women in the workforce will receive on average$8,000 less annually in retirement income than their male counterparts.

Retirement security is becoming a goal beyond reach for many of Americas working families.

Half of all workers have no retirement security plan other than Social Security. Only 21% of workerstoday receive traditional pension plans benefits. Fewer retirees will enjoy the security and regularityof monthly pension checks that many employers once paid.

The Auto-IRA approach offers most employees not covered by an employer-sponsoredretirement plan the opportunity to save through the powerful mechanism of regular payrolldeposits that continue autom atically.

Studies show that automatic enrollment significantly increases participation in retirement plans. For women, participation in retirement plans rises to 86% from 35% when they are

automatically enrolled.

The Auto-IRA w il l help employers.

The Auto-IRA will help small businesses to be m ore competitive with many large and mediumsize companies in recruiting and retaining employees.

In exchange for offering the Auto-IRA, employers will receive a tax credit that w il l help cover thecost of administering the plan.

The Retirement Security for Life Act w ill help employees plan for the future.

The Retirement Security for Life Act would provide a new tax incentive to encourage people tochoose retirement vehicles, such as annuities, that provide guaranteed lifetime income.

When combined with Social Security and other retirement income, an annuity can help coverbasic living expenses.

Under the proposal, individuals would not pay federal taxes on one-half of the income generated by annuities that promise lifetime payments. There would be an annual limit of $20,000 onthe amount an individual could exclude from federal taxes each year.

bpw_fact sheets 2009

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