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- April 25, l983NATIONChampion of the Elderly
-
-
- At 82, Claude Pepper is at the peak of his career
-
-
- "There are only two Democrats who really bug Reagan," says a
- presidential aide. "One is Tip O'Neill, and the other is that
- Congressman who keeps talking about Social Security."
-
- That Congressman watches the world through trifocals. He wears
- a pacemaker in his chest to quicken his heartbeat when it slows.
- One of his heart valves is synthetic; it replaced the natural
- one that developed a calcium deposit. He is nearly deaf without
- his hearing aids. A bulbous nose dominates his rumpled face,
- which looks forever melancholy even when its owner is not. He
- is 82 years old.
-
- But Claude Denson Pepper is like a vintage automobile with new
- parts: He gets better and more powerful with age. By an odd
- convergence of historical trends, Pepper's unshakable of New
- Deal liberalism is in phase with the graying of America, even
- at a time when conservatism marches forcefully through
- Washington's corridors of power. Some 36 million Social
- Security recipients, and millions more who are nearing
- retirement, count on Claude Pepper to protect their rights and
- well- being. And Pepper has doggedly done so.
-
- That should be especially evident this week; President Reagan
- is scheduled to sign a historic package of Social Security
- reforms designed to save the system from insolvency. The
- undisputed champion of the elderly, Pepper has held the fate of
- the delicately balanced compromise in his hands. He had fought
- against all cuts in benefits, gave ground only grudgingly when
- concessions had to be made to keep the legislative alive, and
- responsibly withheld the veto many of his more zealous followers
- had wanted him to wield. Says Pepper, accurately and with no
- false modesty: "If I had not voted for it, then there would not
- have been a package, and there would have been complete chaos."
-
- After 14 years as a U.S. Senator from Florida and 20 years as
- a Congressman from the Miami area, Pepper is at the peak of his
- astonishingly tireless and durable career. He demonstrated his
- political punch in the 1982 congressional elections, stumping
- with surprising energy in 26 states. Of the 73 House Democrats
- he supported, 54 won. The difference he made varied, of course,
- from race to race. But his presence never hurt. "Claude was
- the sought- after speaker by Democratic candidates in 982,"
- recalls House Majority Leader Jim Wright. "At one rally for
- elderly people, we expected 200, but 800 showed up and waited
- for an hour and a quarter to hear him." Adds California
- Congressman Tony Coelho, Democratic congressional campaign
- committee chairman: "No single person had more of an impact on
- the 1982 elections. His mug was all over this country--on
- posters, on banners, on TV and billboards. He was a symbol to
- the elderly and the helpless."
-
- While Pepper's critics contend that he exploited the
- Administration's hastily prepared and ruefully withdrawn initial
- proposals for cutting Social Security benefits, he is liked and
- respected by House colleagues of both parties. Last January he
- became chairman of the House Rules Committee, which can
- determine not only the timing of legislation but sometimes
- whether a bill comes to a vote at all. He reluctantly
- relinquished his chairmanship of the House Select Committee on
- Aging. "It was wrenching," he says. "Like choosing between a
- brother and a sister."
-
- "His very person debunks the myths about aging," says Jack
- Ossofsky of the National Council on the Aging. "Concern about
- the elderly, the poor and the frail has characterized his entire
- career."
-
- He intends to do more. A bill sponsored by Pepper and passed
- 1978 eliminated any mandatory retirement age for most federal
- employees and raised it from 65 to 70 for workers in private
- industry. He has a new bill in the House hopper to remove any
- such age limits at all. "The only mandatory retirement," he
- says, "is when you can't do the work any more."
-
- The Senator turned Congressman (everyone still calls him
- Senator, even though he has not been one since 1951), has an
- urgent interest in cancer research. In 1937 he sponsored a bill
- that created the National Cancer Institute. Now he wants the
- Government to provide an extra $100 million in each of the next
- five years for work on the disease. "You know, I lost my wife
- Mildred to cancer in 1979," he says quietly. "Last month I
- spoke at a wake for Don Petit of my staff, who died of cancer
- in Florida. A woman on my staff is suffering from bone cancer
- and was told she'll probably never be able to walk again. Well,
- we've got to do more to try to stop this disease."
-
- But will not all such social programs cost too much in an age
- of soaring budget deficits? Others may blend to political
- fashion, but Pepper never wavers: "I would rather live with
- $200 billion deficits and have more people living, than the
- reverse. And if we don't spend the money fighting cancer and
- arthritis and poverty and poor housing and all the rest, they'll
- just spend it on the military or something else." In Pepper's
- view, that settles that.
-
- "He's reversed the aging process," says Florida Senator Lawton
- Chiles. "He has more political power than ever."
-
- While Pepper's body has required a few repairs, his mind
- remains sharp. His memory is so keen that he can be introduced
- to seven people at lunch and thereafter address them unerringly
- by name. He recalls conversations with F.D.R. more than four
- decades ago in vivid detail. Pepper is more impressive on the
- podium. He never reads from a text, rarely uses notes, yet the
- words roll out in graceful sentences. The loose skin on his
- chin and neck fairly quivers with indignation and a clenched
- fist punches the air when he berates "an Administration that
- wants to cut $11 billion from Medicare." When he recounts
- stories of poor people hurt by budget trims, Pepper sometimes
- gets misty-eyed. So do his listeners. Congressman Coelho was
- present on one such occasion during the 1982 campaign.
- "Claude's eyes teared over, and by the time he finished
- speaking, 70% of the audience were teary-eyed. It was just a
- tremendous emotional experience."
-
- Neither exercise nor diet explains Pepper's mental agility and
- physical stamina. He loves golf but gets out on the course
- only sporadically, recently shooting 48 over nine holes at Coral
- Gables Country Club and winning 75 cents from his opponents.
- He admits that he does not even walk as much as he would like,
- although when he does, he says, "I walk fast." He eats heartily
- and is a bit overweight (5 ft 7 1/2 in., 180 lbs.). His one
- dietary idiosyncrasy: he has soup and crackers with each meal,
- even breakfast.
-
- Pepper gave up smoking in 1933. Strangers often view his red,
- veiny nose as a sign of heavy drinking, but he denies it.
- Except for one or two glasses of white wine with lunch and
- dinner, he abstains from alcohol. In the house dining room,
- waitresses automatically bring Pepper his soup, crackers and a
- carafe of wine. No connoisseur, he never asks for anything
- fancier than chablis.
-
- If there is a key to Pepper's vitality, it is that he enjoys
- his work and has never lost his passionate concern for people
- and issues. His home telephone numbers are listed in both the
- Washington and Miami directories, and constituents often call,
- seeking help with red tape or support for legislation. He keeps
- regular office hours in both cities and meets with anyone who
- asks to see him.
-
- After a speech to retirees or other older folks, Pepper lingers
- to bask in the affection of his admirers. He moves slowly among
- them, sometimes bussing a few of the women who do not kiss him
- first. He eagerly grasps the outstretched hands of the men. His
- rapport with the elderly is such that his office is inundated
- with their messages whenever an issue that concerns them is
- pending in Washington. During the Social Security debate last
- month, some 3,000 letters and 100 phone calls sought his
- attention each week. Says Pepper about the elderly: "They
- deserve much--and need much. I am helping them."
-
- On a typical weekday in Washington Pepper rises by 6:30, reads
- the Post and keeps a breakfast appointment at 8. He drives
- himself around in a long Lincoln Town Car, carries his own bag
- through airports, normally travels alone. A house keeper cares
- for his waterfront condominium in Miami, and a staff aide, James
- Brennan, 66, shares his northwest Washington apartment. The two
- often dine out together. Then Pepper watches the 11 o'clock
- news, skims the New York Times and goes to bed by midnight.
-
- His weekends are scarcely less regimented. Not long ago, he
- traveled to austin for a Saturday speech, then flew to Miami for
- a funeral on Sunday. He took 10 o'clock flight that night to
- Boston, getting to bed in Cambridge at 3 a.m. A limousine
- picked him up at 7:45 a.m. Monday for breakfast with Harvard
- President Derek Bok. (A gentle flirt with women, Pepper
- probably would have preferred eggs and bacon with Bo Derek.)
- He held a series of press conferences, spoke for an hour to
- Harvard Medical School gerontology class, then returned to
- washington for an afternoon of House business. That night,
- Pepper made another speech.
-
- Often described as a millionaire (he says he would qualify only
- if some Florida beach land he owns were sold for his asking
- price of $600,000), Pepper has no qualms about drawing some $650
- a month in Social Security benefits that he qualified for at the
- age of 72. And he says he will not mind paying tax on this
- pension, as required under the new law for high income earners.
- Says he: "Social Security is an insurance program to which I
- have contributed. It isn't welfare."
-
- The Peppers had no children, and he has long referred to his
- staff as "my family," But he has been lonely without Mildred.
- He sadly recalls the day when he and his wife sat at a small
- table in their Miami home after she had begun treatments for
- cancer. "Well, Claude," said Mildred, his wife of more than 40
- years, "it looks as if we may be coming to the end of the road."
- He embraced her and said through tears, "Don't talk like that,
- Mildred. I can't think of life without you." In their
- Washington apartment, there is still a note in his wife's
- handwriting attached to a shower curtain. It reads: "After you
- shower, please close this curtain."
-
- "He has flair," says Anne Ackerman, 69, a Democratic leader in
- Miami's Dade County. "He has style. He epitomizes what a
- public servant should be. Claude Pepper represents an America
- that is a civilization rather than just a country with borders.
- He is what you want life to be."
-
- Part of Pepper's style is his droll humor. Some of his jokes
- may be as old as he is, but his deadpan delivery delights his
- audiences. Arriving late for a speech, he tells his listeners
- about two men in colonial days who were set to duel at dawn.
- Only one of the antagonists showed up. The other sent a note
- by messenger. It read: "I'm running a little late this morning.
- Please go ahead without me."
-
- Another Pepper story, which Reagan has taken to telling on
- occasion, involves a bishop and a Congressman who arrive in
- heaven together. St. Peter shows the Congressman a lavish suite
- of rooms, while assigning the bishop a small one with no view.
- When the bishop complains that his lifetime of service to the
- church rates something better, St. Peter replies: "Don't feel
- bad, Bishop. You know, we have thousands of bishops up here,
- but this is the first Congressman we ever got."
-
- Neatness is another Pepper trademark. He wears a fresh suit,
- usually with vest, every day. His sparse white hair (he stopped
- wearing a toupee in 1980 after it blew off as he greeted
- President Jimmy Carter at the Miami Airport) is carefully
- combed. Presiding at a recent House Rules Committee hearing,
- he leaned back, motioned to an aide and whispered in his ear.
- The aide rushed to straighten a portrait on a side wall.
- Pepper nodded his approval.
-
- "In Alabama, we lived in a house that was little more than a
- place to sleep," recalls Claude's brother Frank, 65. "We did
- not have a car. I can remember hearing him come home late at
- night, rehearsing speeches he was going to give when he became
- a U.S. Senator."
-
- Pepper cannot really explain how he managed to grow up
- uninfected by the redneck racism prevalent in the Alabama farm
- country where he was born in 1900. "Why, I was full grown,"
- says Pepper, the eldest of four children, "before I ever
- traveled on a paved road." Whatever the reason, he felt the
- stir of ambition early on: at the tender age of ten, he carved
- the words Claude Pepper, United States Senator on a tree.
-
- Pepper entered the University of Alabama in the fall of 1918.
- To help pay his way, he worked from 4 a.m. to 7 a.m. hauling
- coal and ashes at a power plant. He starred on the debating
- team, ran on the track squad, made Phi Beta Kappa, but lost his
- first election: for student- body president. When his
- oratorical skills took him to a contest in Chapel Hill, N.C.,
- "it was the farthest north I had ever been."
-
- The North beckoned, however. "Why shouldn't I go to the best
- law school there is?" he asked himself. He applied to Harvard,
- was admitted and got tuition, books and $100 a month support
- money from the Veterans Administration. The reason: during his
- brief Army service, spent training at the university of Alabama,
- he suffered an injury that developed into a double hernia.
- Pepper's appreciation for both education and the benevolent
- Uncle Sam was never to leave him:
-
- "I get so burned up when anybody tries to cut back on the money
- available to help needy students."
-
- After Harvard, Pepper taught law for a year at the University
- of Arkansas, then set up practice in Perry, Fla. In the next
- eleven years, he handled some 30 murder cases, taking one of
- them successfully all the way to the U.S. Supreme Court.
-
- Active in Democratic politics, Pepper, at 28, became a member
- of the Florida Democratic executive committee. He won at the
- polls for the first of 15 times; he was elected to the Florida
- house of representatives. One of his first bills showed his
- early concern for the elderly. It would let anyone over 65 fish
- without a license.
-
- But his sense of racial fairness may have cost him his seat two
- years later. He was defeated after voting against a resolution
- that criticized Mrs. Herbert Hoover for inviting the wife of a
- black Congressman to the White House. Recalls Pepper: "I
- thought my political career had died aborning."
-
- He resumed his law practice, opening an office in Tallahassee
- and bringing his parents to live with him in 1931. The
- Depression had proved ruinous to his father. Pepper learned
- firsthand the problems of the elderly, caring for his father
- until he died in 1945 at the age of 72 and his mother until her
- death in 1961 at 84.
-
- But Pepper yearned to return to politics. He made a brash bid
- in 1934 to unseat U.S. Senator Park Trammell in the Democratic
- primary. F.D.R. was in the White House, and Pepper's campaign
- slogan was wordy but effective: "The Welfare of the Common Man
- Is the Cornerstone of the New Deal." Virtually unknown, he
- nevertheless forced a run-off and lost by a mere 4,050 votes.
- When both of the state's Senators died within weeks of each
- other in 1936, Pepper filed for one of the vacancies. His
- earlier showing scared off challengers, and at 36, he was
- elected to the Senate unopposed. Says Pepper, a Baptist: "I
- realized then that providence can handle my affairs much better
- than I can."
-
- Roosevelt sought the freshman Senator's support for his
- power-grabbing and ultimately unsuccessful plan to pack the
- Supreme Court with additional Justices. Pepper had
- reservations, but far from timid, he said he would go along if
- F.D.R. would help him win election to his first full six-year
- term in 1938. "I will, and that's a commitment," promised the
- President, who kept his word.
-
- Pepper, in turn, became one of F.D.R.'s stalwart supporters on
- Capitol Hill. When resistance to New Deal economic programs
- grew in the Senate, the Florida newcomer rose to scold his
- elders: "We haven't' gone too far, we haven't gone far enough.
- This is not eh Promised Land. Are we going to commit the same
- folly that the children of Israel did?" His colleagues rose in
- an ovation. Newspaper Columnist Drew Pearson called the speech
- "one of the greatest of its kind ever heard in the Senate
- chamber."
-
- Pepper easily won re-election in 1938 after defeating a former
- Florida Governor in the primary by more than 100,000 votes. but
- his liberalism was antagonizing businessmen in the state, who
- vowed to turn him out of office. Pepper had been instrumental
- in passing the nation's first minimum wage law, which guaranteed
- workers 25 cents an hour. "Business never forgave me," he says.
- It was the last major piece of New Deal legislation.
-
- His views on foreign affairs also undermined his Florida
- support.
-
- He and his wife Mildred visited Berlin after his 1938
- re-election, and the Senator was alarmed by what he recalls with
- wry understatement as "the mutterings of war." Pepper joined
- the push for a military draft and came up with an innovation of
- his own. He was convinced that the only way the U.S. could stay
- out of the war in Europe was to help the Allies win it. Since
- they were waiting warplanes on order from the U.S., Pepper
- reasoned, why not send them aircraft out of the U.S. FAir Force,
- replacing these planes later as the order came off production
- lines? This idea,a rejected at first in the Senate, became the
- Lend- Lease program, which provided Britain, in particular, with
- crucial ships, warplanes and other war materiel.
-
- For his efforts, Pepper was hanged in effigy at the Capitol in
- August 1940, by women who opposed his "warmongering." He still
- has the coconut head and stuffed denims that the women had
- fashioned to look like him.
-
- Pepper won re-election in 1944 but, mainly because of his
- liberal views, speaking invitations in Florida dropped off as
- civic clubs and local Chambers of Commerce blackballed him.
- Business leaders were building a campaign war chest to beat him
- in 1950. He played right into the hands of his foes. Traveling
- abroad in 1945, Pepper met Joseph Stalin and naively described
- the Soviet dictator as "a man Americans can trust."
-
- The following year, Pepper accepted an invitation to attend a
- left- wing political rally in New York's Madison Square Garden.
- Waiting backstage with Secretary of Commerce Henry Wallace and
- others, Pepper was asked to pose for a group photo. As he did
- so, Paul Robeson, the opera singer who was widely considered a
- Communist, took a position beside him. The resulting photo of
- Pepper looking chummy with a black Soviet symphathizer was to
- prove a political disaster for him back home.
-
- Pepper also incurred the potent wrath of Harry Truman by
- joining a dump-Truman movement at the 1948 Democratic
- convention. Pepper felt that Truman had abandoned Roosevelt's
- domestic programs. Pepper and others tried to persuade World
- War II Hero Dwight Eisenhower to run as a Democrat. They got
- word that Ike would not seek the nomination, but would accept
- it. Thus Pepper led a Florida delegation pledged largely to
- Ike, gaining headlines that made Truman furious. Ike left
- Pepper out in the cold by sending him a telegram withdrawing his
- name from consideration.
-
- Truman did not forget. Shortly after upsetting Republican
- Thomas Dewey in the election, he summoned George Smathers, then
- a Florida Congressman, to the White House. Pepper had helped
- Smathers get elected. "I want you to do me a favor," Smathers
- recalls Truman's saying. "I want you to beat that
- son-of-a-bitch Claude Pepper."
-
- That 1950 senatorial election was one of the dirtiest on
- record. The Robeson-Pepper photo was circulated widely. So too
- b\was a book called the Red Record of Senator Claude Pepper,
- which distorted his attitude toward the Soviet Union. He was
- stuck with the Label Red Pepper.
-
- But the campaign is chiefly remembered for remarks attributed
- to Smathers--and later denied by him--in TIME. Quoting
- Northern newspapers, the magazine said Smathers used fancy
- language to convey sinister meanings to benighted rural
- listeners: "Are you aware that Claude Pepper is known all over
- Washington as a shameless extravert? Not only that but this man
- is reliably reported to practice nepotism with his
- sister-in-law, and he has a sister who was once a thespian in
- wicked New York. Worst of all, it is an established fact that
- Mr. Pepper before his marriage habitually practiced celibacy."
-
- Pepper was defeated by 67,000 votes. "On election night people
- came up to our house in cars, shouting obscenities, cheering the
- fact that I had been defeated," Pepper recalls. "They wanted
- to destroy me, and just about did."
-
- (Pepper is not a man to carry a grudge, but it was not until
- last year that he fully forgave Smathers. When an aide
- suggested asking Smathers' law firm for a campaign contribution,
- Pepper reluctantly agreed and was surprised when he got a $350
- check in reply. Shortly thereafter, Pepper walked up to
- Smathers, who was lunching in the House dining room, and said
- without smiling: "You know that check you sent in for my
- campaign? Well,l it bounced." It had not, of course, and when
- Smathers realized that Pepper was joking, both knew that their
- enmity was over.)
-
- Once again, Pepper returned to his law practice. He tried a
- senatorial comeback in 1958, but was beaten in the Democratic
- primary. By 1962 he was earning more than $150,000 a year,
- representing mainly corporate clients. But when a new Miami
- congressional district was created that year, he jumped back
- into the political swim. He missed politics, and Mildred missed
- the capital's social whirl. Says Brother Joe, 73, about
- Claude's law practice: "he was very successful. But he was
- miserable, just plain miserable."
-
- Pepper did not consider it demeaning to step down from Senator
- to Congressman, although he concedes that "most people go the
- other way." If he had somehow stayed in the Senate, he figures
- he would have become chairman of the Senate Foreign Relations
- Committee and might have would up serving longer than anyone
- else. "But that committee doesn't save many souls," he adds.
- "I know I'm doing more good now."
-
- At a Veterans Administration hospital in Miami, a patient in a
- wheelchair watches Pepper greeting the bedridden and says:
- "I'm a Republica. But I always vote for Senator Pepper. He
- doesn't care if you're an old Republican or an old Democrat.
- Just so you're old."
-
- Pepper is far from a one-issue legislator. In 1945 he
- sponsored a resolution that led to the creation of the World
- Health Organization and, in the late '40's, bills establishing
- five of the National Institutes of Health. Not only does he
- favor a freeze on nuclear arms now, but he advocated one after
- the end of World War II. Still, nothing offends his sense of
- justice quite as much as modern society's tendency to view the
- elderly as a burden or a stereotyped group. He does not feel
- complimented when someone tells him: "My, you don't look your
- age." Inwardly, he grumps, "How am I expected to look?
- Toothless and doddering, a caricature of my younger self?"
- Pepper assails "ageism" as "just as wrong as racism or sexism."
-
- At a recent Miami dinner in his honor, Pepper spoke eloquently
- about growing older. "The aging process is so slow, so gradual,
- that all you notice is a slight diminishing of some of your
- faculties," he said solemnly. what the elderly want is "to be
- thought of as just other people. They need love. They need
- compassion." He concedes that attitudes toward the aging are
- improving and predicts that this will get much better when, as
- demographers predict, the elderly constitute an even larger
- share of the nation's population.
-
- If Pepper could wave "a legislative wand," he says he would
- "enact a Medicare bill under which the entire cost would be
- borne by the Government instead of just the 45% now." He would
- provide home health care, claiming that it would often save the
- Government the higher cost of putting people who need not be
- there in hospitals. And he would provide more preventive health
- coverage, in hopes of checking illness and prolonging life.
- Overall, Pepper is optimistic, even without his wand, because
- he feels that pressure is growing on the Administration to stop
- cutting social a programs. "The Reagan era will come to an end.
- already we're moving toward compassion in Government again."
-
- When Pepper's admirers worry about his advancing years and long
- he expects to be on Capitol Hill, he sometimes admits that he
- has retirement plans. "I've set the year," he drawls. As his
- listeners' concern grows, he adds without a smile: "The year
- 2000. But I reserve the right to change my mind."
-
- In fact, Pepper has big plans for next year. He intends to
- lead a drive to elect some 500 delegates who are at least 65
- years old to the 1984 Democratic National Convention. That
- would be about 12% of the total, and he wants to use their
- leverage to influence the choice of a nominee and the
- candidates' stand on issues dear to the elderly.
-
- Already, the contenders for the nomination are seeking Pepper's
- support. Senator Alan Cranston has even listed Pepper as a
- possible running mate if the Californian were to succeed in his
- long-shot pursuit of the nomination. Such a Democratic ticket,
- with a combined age of 154 at election time, would accomplish
- the impossible: it would make a Republic team of Reagan and Vice
- President George Bush (combined age 133) look young.
-
- Some of Pepper's most avid fans even urge him to run for
- President.
-
- He clearly considers himself just as physically fit as, and
- more capable than the present occupant of the Oval Office.
- Claims Pepper about 1984: "I'll be better able to throw my hat
- in the ring at 83 than Ronald Reagan will be a 73." In less
- quixotic moments, Pepper admits that he is, at best, suited to
- the No. 2 spot. "It's easy to replace a Vice President," he
- says, in a rare recognition of his own mortality.
-
- At an age when most people are savoring old memories, Claude
- Pepper never looks back. His latest legislative proposal is to
- create a House Committee on the Future of the U.S. He, of
- course, would like to stick around to help shape its vision, and
- to seek that the recommendations are carried out. In the
- meantime, he plans to lead his graying army to greater
- triumphs--and to keep bugging Ronald Reagan.
-
- An elderly woman spots Pepper on a Miami sidewalk and throws
- her arms around his neck. "I just want to thank you," she says,
- "for what you are doing for us."
-
- --By Ed Magnuson. Reported by Hays Gorey/Washington
-
- Balancing Act
-
- Everyone agreed that something had to be done. Otherwise,
- Social Security's main retirement fund would have slid into the
- red by July. But there are few more politically volatile issues
- than whether to restore the system to solvency by raising more
- revenues or by reducing benefits. After wrestling with the
- problem for a year, a bipartisan commission headed by Economist
- Alan Greenspan recommended a mixture that leans more heavily on
- new revenues than on benefit cuts. Passed overwhelmingly by
- congress, the plan represents a victory for Claude Pepper and
- others who opposed shrinking the system. It major provisions:
-
- > Increases in the payroll tax will be accelerated, netting
- some $39.4 billion in added revenue by 1990. At present,
- employers and employees each ante up 6.7% of salary; the figure
- for employers will reach 7% next year, 7.05% for both in 1985,
- 7.15% in 1986, 7.51% in 1988 and 7.65% in 1990. The tax is
- currently applied to a maximum pay of $35,700, but his ceiling
- will rise as the average national wage increases, as under the
- present law.
-
- > Self-employed people will have to pay Social Security tax
- equal to 100% of the total pay by employers and employees; they
- now pay only 70%.
-
- > Taxes will have to be paid on a portion of the Social
- Security benefits of anyone whose income plus one-half of their
- pension exceeds $25,000 a year. For married couples filing
- jointly, the base amount will be $32,000.
-
- > For the first time, all federal employees who join the
- Government after Jan. 1, 1984, will be covered by Social
- Security, expanding the system's base and revenues. Employees
- of non-profit organizations will also be forced into the system.
- Employees of state or local governments now covered can no
- longer withdraw.
-
- > Early retirement will still be permitted at 62, but benefits,
- currently 80% of the full pension paid at 65, will drop to 75%
- in the year 2009 and 70% in 2027.
-
- > The retirement age for full benefits will increase from 65 to
- 66 between 2003 and 2009 and then to 67 between 2021 and 2027.
-
- > The next cost of living adjustment for those now receiving
- benefits will be delayed from July to next January. The change
- will be calculated each January thereafter, based on
- fluctuations in the Consumer Price Index.
-
- > The bonus that workers over 65 get for delaying their
- retirement, which is now 3% of benefits for each year's delay,
- will gradually increase to 8% between 1990 and 2008. The
- maximum delay is five years.
-
-