N002430
Congress of the United States
Washington, DC 20515
January 11, 2002
Kenneth L. Zwick
Director, Office of Management Programs
Civil Division
U.S. Department of Justice
Main Building, Room 3140
950 Pennsylvania Avenue NW
Washington, DC 20530
Dear Mr. Zwick:
We write to express concerns with the Interim Final Rule(the Rule) published on
December 21, 2001. Although the Rule makes a good attempt at setting forth regulations that
would implement the September 11th Victim Compensation Fund which was included in the Air
Transportation Safety and System Stabilization Act(P.L. 107-42), the Rule contains procedures
that are discriminatory to women and should therefore be revised before becoming final on
January 22, 2002.
Firstly, the use of outdated data to calculate compensation will negatively impact the
families of women who perished or were severely injured on September 11th. The National
Association of Forensic Economics (NAFE), an organization of economists and other
professionals who measure damages and/or proof of liability in litigation, suggested recently that
"[t]he worklife tables used [in the Interim Final Rule] in projections are out of date, and
especially inappropriate in the case of loss earnings for women."
"Worklife estimates" are an estimate of the number of years equal to the average expected
work life of a person. We understand that these statistics will be used, in part, to determine
amounts of compensation for the families therefore, reliable and timely data will be essential for
accurate calculations. Yet, the Special Master proposes to use the U.S. Department of Labor,
Bureau of Labor Statistics' (BLS), "Worklife Estimates" which are outdated charts. These
estimates were made in 1979 and will show women working on average five years less than men,
a gap that has narrowed over time. The Bureau of Labor Statistics' Worklife estimates are,
according to the experts, widely considered as "invalid" and out of date." We call on the
Special Master to use more widely-accepted, gender-neutral actuarial practices in his
calculations.
Secondly, in the Rule the Special Master does not take into account household services
performed by the working person for the family, such as child care and household upkeep, when
determining compensation. For women, replacement of lost services can be significant. The
National Association of Forensic Economics' Dr. John Ward, has said that on average, women
contribute 25 hours to housework compared to 10 hours for men. For the victim's family, this
could mean up to $300,000 in a lifetime.
According to press accounts, approximately 25, percent of those killed in the September
11th attacks were women. We strongly urge the Special Master to abandon the use of outdated
worklife tables that underestimate the time women spend in the workforce. In addition, the
Special Master should compensate victim's families for lost household services. Without these
changes, families of women who perished or were injured on September 11th will likely be
under-compensated.
We realize that the Department is receiving commentary(including comments from some
of us who have signed this letter) regarding numerous other aspects of the Rule. This letter is not
comprehensive, but is intended to highlight these particular problems. We trust that you will
give our comments every consideration when finalizing the regulations to implement the
September 11th Victim Compensation Fund.
Sincerely,
CAROLYN B. MALONEY PETER KING
Member of Congress Member of Congress
EDOLPHUS TOWNS CAROLYN MCCARTHY
Member of Congress Member of Congress
STEVE J. ISRAEL FELIX J. GRUCCI, JR.
Member of Congress Member of Congress
NYDIA VELZQUEZ BENJAMIN A. GILMAN
Member of Congress Member of Congress
JERROLD NADLER MAURICE HINCHEY
Member of Congress Member of Congress
JOSE E. SERRANO GREGORY W. MEEKS
Member of Congress Member of Congress
1. 12-21-01 fr 66273-66291
2. P.23," An introduction and Critique by John O. Ward," Chair and Professor of Economics,
University of Missouri-Kansas City, delivered to the National Association of Forensic Economics, January 4, 2002
3. p.2, Presumed Loss Calculations Tables Before any Collateral Offsets, listed on the U.S.
Department of Justice's September 11th Victim Compensation Fund of 2001 website
4. "Less for Women?; Work life Statistics May Limit Sept. 11 Fund Payouts to Victims,"
Newsday, January 4, 2002
5. p. 19 "An Introduction and Critique by John O. Ward," Chair and Professor of Economics,
University of Missouri-Kansas City, delivered to the National Association of Forensic Economics, January 4, 2002
6. "Less for Women?; Work Life Statistics May Limit Sept. 11 Fund Payouts to Victims,"
Newsday, January 4, 2002