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Archived News Release--Caution:
information may be out of date.
For more information call: (202) 219-7316
On this Mother's Day, American women may find help in
undoing the pension inequality that exists in the workplace. Secretary of Labor
Robert B. Reich today outlined retirement problems facing women as he argued
for new legislation that would aid small businesses and American workers.
In a speech to the Women's Research and Education
Institute, Reich said President Clinton's Retirement Savings and Security Act
would mean 51 million workers now without pensions would be able to save for
retirement. He noted that women would disproportionately benefit from the
proposal because they have disproportionately suffered when it comes to pension
coverage.
"Women have more catching-up to do in terms of achieving
pension parity with men. Although the proportion of women in the private sector
covered by pension plans has grown significantly over the past quarter-century,
there are many indications that women are not getting the retirement security
men have," Reich said.
"The bill will ease many of the current pension rules
that, given women's employment patterns, are particularly hard on them," he
said.
He noted statistics which show:
- Two-thirds of working women are employed in sectors of the economy
with the lowest pension coverage rates.
- Approximately 12 million women work for small firms which do not
offer pension plans.
- Women covered by union agreements are nearly twice as likely to have
a pension. Women are half as likely as men to be in these jobs.
- Women are almost three times as likely to work part-time.
These problems are "the glass ceiling of retirement
security," Reich said.
"We cannot and should not separate family values from
economic values," Reich said. "With so many American families dependent on two
incomes for economic survival, diminishing the retirement security of women
because they have taken responsibility for bearing their children is
discriminatory and wrong."
Reich noted that the legislation proposed by President
Clinton:
- Makes it easier for small businesses to set up 401(k) plans, which
would be fully portable and have immediate vesting. It will likely increase the
number of pensions offered in industries which now have the lowest rates of
coverage.
- Broadens eligibility, which will enable more part-time workers to
save for retirement.
- Permits 401(k)s to be created by non-profit organizations, which
employ millions of women.
- Eases barriers to pension portabilility and vesting requirements in
existing plans.
"This Mother's Day, a unique gift suggestion for a son or
daughter may be a contribution to a mother's retirement plan," Reich said.
"Economic security is not built overnight and we believe the time to save is
now. This administration's commitment is to make it easier for men and women
workers to save for their retirement and for American businesses to help them
do that."
Archived News Release--Caution:
information may be out of date.
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