PENSION PLAN BIAS

WHEREAS, fewer workers than ever are being covered by employee pension plans, and women workers are the hardest hit; and

WHEREAS, private pension plans are stacked against women because female workers are more likely to hold low-wage, service, part-time or nonunion jobs where coverage is less likely; and a recent House of Representatives subcommittee on aging concluded that more elderly women than men will live in poverty, in part because private pension plans discriminate against women; and

WHEREAS, women are 70 percent more likely to spend their retirement in poverty than men; and

WHEREAS, widowed women are four times more likely to live in poverty after retirement than married women; and single or divorced women are five times more likely to live in poverty after retirement than married women; and

WHEREAS, Social Security and private pension systems penalize women for living longer than men, earning less than men, divorcing, working part-time and taking leave to care for children or family members; and

WHEREAS, many women are at risk of falling into the "widow's gap," because of outdated job skills and age discrimination. Women under age 60 are more likely to begin collecting spousal benefits early, decreasing their lifetime benefits by as much as 30 percent; and

WHEREAS, the Illinois State Federation of Labor has a position in favor of legislation requiring employers to provide the same benefits to all employees irrespective of their employment status:

RESOLVED, that the American Federation of Teachers strongly oppose the subcontracting of services and the use of part-time workers by employers so as to avoid the payment of pension and benefits; and

RESOLVED, that the AFT publicize the impact of such practices on the lives of workers, retirees and their families; and

RESOLVED, that the American Federation of Teachers, through the AFL-CIO, actively work toward the elimination of discriminatory pension practices and policies.