Order Code RS21228
Updated May 30, 2002
CRS Report for Congress
Received through the CRS Web
Social Security Benefit Enhancements for
Women Act of 2002 (H.R. 4069)
Dawn Nuschler
Analyst in Social Legislation
Domestic Social Policy Division
Summary
On May 14, 2002, the House passed the Social Security Benefit Enhancements for
Women Act of 2002 (H.R. 4069), as amended, by a vote of 418-0. H.R. 4069 includes
benefit enhancements targeted to certain divorced spouses and disabled and elderly
widow(er)s. Specifically, the measure would: (1) eliminate the requirement that
widow(er)s seeking disability benefits must have become disabled within 7 years of
their spouse’s death; (2) eliminate the 2-year waiting period for divorced spouse’s
benefits when the former spouse has remarried; and (3) disregard months after the
deceased worker’s death in the application of early retirement rules for purposes of the
limitation on widow(er)’s benefits. The Congressional Budget Office estimates that
H.R. 4069 would affect over 120,000 persons and cost $3.3 billion over 10 years. The
Social Security Administration’s Office of the Chief Actuary estimates that the measure
would have a negligible effect on the long-range actuarial balance of the Social Security
trust funds. This report will be updated as legislative action occurs.
Background
The Social Security program provides benefits to retired and disabled workers, to
their dependents, and to the survivors of deceased workers. In 2000, there were 45
million Social Security recipients. Of those, 53% were women (compared to 39% men,
8% children); and 81% of the total recipient population was age 62 or older. Benefit
amounts varied by gender. The average benefit was $928 for men and $696 for women.
For retired workers, the average benefit was $951 for men, $730 for women; for the
spouses of retired workers, $243 for men, $431 for women; for disabled workers, $883
for men, $661 for women; for nondisabled widow(er)s, $607 for men, $812 for women;
and for disabled widow(er)s, $362 for men, $524 for women.
Social Security is the primary source of income for the elderly (persons age 65 and
older). In 2000, 90% of the elderly population had income from Social Security
(compared to 29% with private pensions and 14% with government employee pensions).
For 64% of elderly recipients, Social Security represented at least half of total income.
Congressional Research Service ˜ The Library of Congress

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For 20% of elderly recipients, it was the only source of income (Social Security was the
only source of income for 11% of married couples and 26% of nonmarried persons).1
Social Security prevents many of the elderly from falling into poverty. For example,
in 2000, 8.5% of elderly Social Security recipients were poor. Without Social Security,
48.1% would have been poor. Although the poverty rate for elderly Social Security
recipients is lower than that for the elderly population overall (8.5% compared to 10.2%),
poverty rates for elderly Social Security recipients vary by gender and marital status. In
2000, the poverty rate for married Social Security recipients was 2.8%, compared to
13.8% for nonmarried men and 16.2% for nonmarried women. For widowed recipients,
the rate was 12.3% for men, 15.0% for women. For never married recipients, the rate was
25.9% for men, 19.5% for women. For divorced recipients, the rate was 9.7% for men,
18.5% for women.2
These statistics illustrate the importance of Social Security for the elderly in general,
and for women in particular. On average, women earn lower benefits than men because
they earn less and spend more time outside the labor force. In addition, women tend to
live longer than men; are less likely to have other sources of retirement income; and are
more likely to be poor.
On March 20, 2002, Representative Shaw introduced H.R. 4069, a bill designed to
enhance benefits for certain divorced spouses and disabled and elderly widow(er)s.3
Although the benefit changes included in H.R. 4069 would be gender neutral, the measure
targets benefits most often paid to women.4 On May 14, 2002, a manager’s amendment
to H.R. 4069 was considered by the House of Representatives under suspension of the
rules (the measure did not go through the House Ways and Means Social Security
Subcommittee or the full Committee).5 The House passed H.R. 4069, as amended, by a
vote of 418-0. The Congressional Budget Office (CBO) estimates that the measure would
affect over 120,000 persons and cost $3.3 billion over 10 years (fiscal years 2003-2012).6
SSA’s Office of the Chief Actuary estimates that the effect on the long-range actuarial
balance of the Social Security trust funds would be negligible (i.e., less than .005 percent
1 “Nonmarried” includes persons who are separated or married but living apart from their spouse.
2 Poverty rates for the elderly are based on family income. For more information, see: Social
Security Administration (SSA), Income of the Population 55 or Older, 2000
[http://www.ssa.gov/statistics/incpop55/2000/index.html]; Annual Statistical Supplement, 2001
[http://www.ssa.gov/policy/pubs/index.html]; and Fast Facts & Figures, June 2001.
3 H.R. 4069 is a bipartisan measure sponsored by Representative Shaw, Chairman of the House
Ways and Means Social Security Subcommittee, and co-sponsored by 39 Members including
Representative Matsui, Ranking Democrat on the Social Security Subcommittee.
4 In December 2000, 4,661,540 women and 37,120 men received nondisabled widow(er)’s
benefits. Similarly, of the 200,130 persons who received disabled widow(er)’s benefits, 168,590
were widows, 26,750 were surviving divorced wives, and 4,790 were widowers.
5 Under suspension of the rules, floor amendments were not allowed and a two-thirds majority
vote was required for passage.
6 The estimated cost of H.R. 4069, amended, as passed by the House (i.e., including tax provisions
incorporated under the manager’s amendment to H.R. 4069) is $3.3 billion over 10 years. The
estimated cost of H.R. 4069 as introduced (i.e., including benefit changes only) is $4 billion over
10 years.

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of taxable payroll) based on the intermediate assumptions of the 2001 Social Security
Trustees’ report. The major provisions of H.R. 4069, amended, as passed by the House
on May 14, 2002, are described below.7
Major Provisions of H.R. 4069
Repeal of 7-Year Restriction on Eligibility for Widow(er)’s Insurance
Benefits Based on Disability. Under current law, surviving spouses (including
divorced spouses) may be entitled to benefits on the deceased worker’s record beginning
at age 50 if he or she is disabled and the qualifying disability occurred (1) within 7 years
of the worker’s death; (2) within 7 years of having been previously entitled to benefits on
the deceased worker’s record as a surviving spouse with a child in care; or (3) within 7
years of having been previously entitled to disabled surviving spouse benefits which
ended because the qualifying disability ended (whichever is later).
H.R. 4069 would eliminate the 7-year requirement for entitlement to widow(er)’s
benefits based on a disability. This would allow a surviving spouse or a surviving
divorced spouse to claim widow(er)’s benefits at age 50-59 if disabled regardless of when
the disability occurred
. This provision would apply to benefits payable for months after
November 2002. CBO estimates that 26,000 persons would be affected by this provision.
Exemption from 2-Year Waiting Period for Divorced Spouse’s Benefits
Upon Other Spouse’s Remarriage. Under current law, a divorced spouse may be
eligible for benefits on a spouse’s work record if the worker is receiving benefits. If the
worker is eligible to receive benefits (but is not receiving them), the divorced spouse may
be eligible for benefits on the worker’s record only if the divorce has been final for at
least 2 years
. Because a current spouse may be eligible for benefits on the worker’s
record only if the worker is receiving benefits, a 2-year waiting period was established
in cases of divorce to discourage individuals from seeking divorce as a way to gain
independent entitlement on the worker’s record.
H.R. 4069 would deem the 2-year requirement met if the worker remarries someone
other than the former spouse during the 2-year period following the divorce. This would
allow the divorced spouse to claim benefits on the worker’s record immediately
(assuming all other requirements are met). Under a conforming amendment, the divorced
spouse would be exempt from the earnings test as it applies to the worker (i.e., the
divorced spouse’s benefit would not be affected if the retired worker has earnings that
cause benefits payable on his or her record to be withheld under the earnings test) (see
the “Explanatory Notes” section for a description of the earnings test). This provision
would apply to benefits payable for months after November 2002. CBO estimates that
fewer than 500 persons would be affected by this provision.
Months After Deceased Individual’s Death Disregarded in Applying
Early Retirement Rules with Respect to Deceased Individual for Purposes
7 On May 17, 2002, Senator Gordon Smith introduced S. 2533 (Social Security Benefit
Enhancements for Women Act of 2002). S. 2533 contains the same provisions as H.R. 4069 as
introduced on March 20, 2002.

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of Limitation on Widow(er)’s Benefits. Under current law, surviving spouses
(including divorced spouses) may be eligible for widow(er)’s benefits beginning at age
60 (or age 50 if disabled). If the deceased worker had retired before the full retirement
age (FRA) and therefore received permanently reduced benefits,8 the widow(er)’s benefits
payable on his or her record are reduced permanently as well under a provision of current
law known as the “widow(er)’s limit provision.”9 If the worker died before reaching the
FRA and he or she had benefits withheld due to the earnings test, the deceased worker’s
benefit is recomputed to take into account months of nonpayment for purposes of
determining the widow(er)’s benefit limit.10
For purposes of the widow(er)’s benefit limit, H.R. 4069 would treat months of
nonpayment between the worker’s retirement and the FRA due to the worker’s death in
the same manner as months of nonpayment due to the earnings test. That is, if a worker
elects early retirement and dies before reaching the FRA, the deceased worker’s benefit
would be recomputed (at the time the deceased worker would have reached the FRA) to
exclude the month of death, and all subsequent months leading up to the worker’s
attainment of the FRA, from the actuarial reduction for early retirement. In effect, a
recomputation of the deceased worker’s benefit in which the actuarial reduction for early
retirement would be based on the number of months the worker collected benefits
between his or her retirement and the FRA, rather than the total number of months, would
raise the limit on the widow(er)’s benefits payable on the deceased worker’s record.
This provision is intended to provide widow(er)s with a potentially higher benefit
by taking into account the relatively short period of time the worker collected benefits
before his or her death. It is intended also to equalize the treatment of widow(er)s of
workers who elect early retirement and die before reaching the FRA (in which case
widow(er)’s benefits are permanently reduced) and those of workers who do not elect
early retirement and die before reaching the FRA (in which case widow(er)’s benefits are
not affected). This provision would apply to benefits payable for months after November
2002. CBO estimates that 96,000 persons would be affected by this provision.
8 The FRA is the age at which unreduced benefits are first payable. Under current law, the FRA
is being increased gradually from 65 to 67. See the “Explanatory Notes” section for a description
of scheduled increases in the FRA and benefit adjustments for early retirement.
9 Under current law, the widow(er)’s benefit can be no greater than the benefit the deceased
worker would be receiving if he or she were still alive, and no less than 82.5% of the deceased
worker’s “primary insurance amount” (the basic benefit amount before any adjustments for early
or delayed retirement). For more information on the widow(er)’s limit provision, see: SSA,
Office of Policy, Office of Research, Evaluation, and Statistics. The Widow(er)’s Limit Provision
of Social Security by David A. Weaver. ORES Working Paper Series, Number 92, June 2001.
[http://www.ssa.gov/policy/pubs/WorkingPaper/wp92.pdf].
10 If a recipient’s benefits are withheld due to the earnings test (see the “Explanatory Notes”
section for a description of the earnings test), his or her benefit is recomputed at the FRA to take
into account months for which benefits were not paid (i.e., the actuarial reduction for early
retirement does not apply to months of nonpayment due to the earnings test, resulting in a higher
monthly benefit). If the recipient dies before reaching the FRA, the deceased worker’s benefit
is recomputed in the same manner (at the time of the worker’s death) to determine the limit
applicable to the widow(er)’s benefit.

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Explanatory Notes
Social Security Earnings Test. Under the earnings test, benefits are withheld
if the recipient is below the FRA and has earnings from work above a specified amount
($11,280 in 2002). Benefits are withheld by $1 for every $2 of earnings above that
amount. The earnings test no longer applies beginning with the month the recipient
reaches the FRA. During the year in which a recipient reaches the FRA, a higher annual
exempt amount applies ($30,000 in 2002), and benefits are withheld by $1 for every $3
of earnings above that amount. The annual exempt amounts are indexed to average wage
growth. The earnings test applies to the worker’s retirement benefit and to any
dependent’s and survivor’s benefits payable on the worker’s record. The amount of the
reduction is applied proportionately to the retired worker’s benefit and all auxiliary
benefits payable on the worker’s record (excluding benefits for divorced spouses if the
divorce has been final for at least 2 years, and certain other benefit categories).
Retirement Age Increase. Under the Social Security Amendments of 1983, the
full retirement age (FRA) is being increased gradually from 65 to 67. Beginning January
2000, the FRA will increase in 2-month increments for persons born in 1938 (i.e, persons
age 62 in 2000) through 1943. The FRA will remain 66 for persons born in 1944 through
1954. It will increase again in 2-month increments until it reaches 67 for persons born
in 1960 or later. The earliest eligibility age remains 62.
Adjustments for Early Retirement. If a worker files for benefits before the
FRA, his or her benefits are permanently reduced to take into account the longer expected
period of benefit receipt. The adjustments made for early retirement are “actuarial” in
that, assuming the individual survives to life expectancy, he or she will receive the same
total lifetime benefit as if he or she had filed for benefits at the FRA. The majority of
workers elect early retirement.