Friday Alert   May 19, 2006
Alliance for Retired Americans
888 16th Street, N.W. -  Washington DC, 20006 - (202) 974-8222 - www.retiredamericans.or

Proposed Part D Penalty Waiver: a Band-Aid on a Major Wound
A bipartisan group of senators announced on Tuesday that they are backing legislation that waives the financial penalty for people who sign up late for Medicare's prescription drug benefit.  The bill, S. 2810, would eliminate the penalty for seniors who enroll in a drug plan during the next open enrollment period, which begins in mid-November.  Senator Charles Grassley (R-IA), chairman of the Finance Committee, introduced the bill, which would prevent a minimum permanent increase of 7 percent on all future premiums from taking effect.  However, with nearly half of all seniors who lacked coverage before the Medicare Part D plan became law still without coverage, Rep. Charlie Rangel (D-NY), ranking Democrat on the House Committee on Ways and Means, called the proposed solution a "band aid."  Edward Coyle, Executive Director of the Alliance, said, "This proposal is not enough.  Without an extension of the enrollment period, millions of seniors without drug coverage will remain locked out of the program for months."  Referring to the upcoming 2006 elections, Coyle added, "Some elected officials who were against eliminating the penalty seem to have looked at the calendar and run for political cover.  However, their solution is not the same as helping seniors this year."

Pension Bill Stalled with Bad Provision
The pension bill, H.R. 2830, continues to be stalled in a House-Senate conference committee.  Issues include the formulas and criteria to determine whether single employer private sector pension plans are adequately funded, whether shutdown benefits can survive, and help for airline industry funds.  One provision, section 307 of the House bill, added without debate, would put insurers first in line for reimbursement any time an injured person holds a wrongdoer such as doctors' errors accountable.  What's worse, the provision has nothing to do with the pension system.  Alliance members are urged to contact their senators and members of Congress and oppose inclusion of section 307 of the House bill in the final pension legislation.

House Budget Resolution Highlights Misplaced Priorities
House Republicans narrowly adopted their fiscal 2007 budget resolution on a 218-210 vote shortly before 1:00 a.m. Thursday.  With U.S. foreign-owned debt increasing by over $1 trillion since President Bush took office, interest payments are now the fastest growing item in the budget.  An alternative Democratic budget reached balance by 2012, but the Republican budget is never balanced.  The budget also cuts vital community services that affect seniors.  "The final budget resolution was made even worse when the House moderates were bullied by their leadership," said George J. Kourpias, president of the Alliance. 

Alliance Board Meeting A Success
The Alliance conducted a highly productive and optimistic Executive Board meeting last week in Washington, DC.  At the meeting, members of the Executive Board voted to amend the Bylaws to add four new members to the Board.  The new board members will be presidents of State Alliances, one from each of the four regions of the U.S.  A second Bylaws amendment specifies that the at-large Executive Board Members elected at the Alliance regional meetings (beginning in 2008) be community-based at-large members.  "This was one of the best board meetings we've had," said George Kourpias.  "There was a lot of energetic discussion and action, and I think everyone left feeling excited for the upcoming Alliance activities and midterm elections."  The board also approved a number of resolutions on policy issues, which will be on the Alliance web site when they become official next week.  New resolutions were adopted for Medicare Part D, Medicaid, retiree health care, and the Older Americans Act.  Amended resolutions were adopted for Medicare, Social Security, and pension and retirement savings protections.

Working in Your Golden Years May Not be an Option
For those who think they will fund their retirement years by working longer, a recent report by McKinsey & Co. may be alarming.  Four out of 10 retired workers left their jobs sooner than they had planned, often because of unexpected health problems or loss of employment, the report found.  Among those surveyed, 45% who are currently employed said they plan to work past age 65, but of those retired, only 13% actually did so.
While workers are facing more stress than ever over the uncertain future of their retirements, lawmakers are clashing with the Bush administration over plans to alter the Senior Community Service Employment Program.  Part of the Older Americans Act, currently being re-authorized by Congress, the program provides job-training programs for low-income workers over age 55.  The Labor Department is planning to re-bid the contracts of the non-profit groups that currently run the senior training programs, even those that are considered extremely successful.  "It makes no sense to me," said Ruben Burks, Secretary-Treasurer of the Alliance.  "This administration is trying to interfere with a popular jobs program."

Alliance National Convention
The National Convention is coming up September 5-8, 2006 in Washington, D.C.  Members will elect a president and secretary-treasurer and at-large members will also elect six community-based board members.  Nominees must be members in good standing of the National Alliance.  Any self-enrolled (at-large) member may attend the meeting and is eligible to vote.  Sponsoring organizations may send as many delegates as they choose.  Nominations must be sent to the Alliance for Retired Americans, Nominations Committee, 815 16th Street, NW, Fourth Floor North, Washington DC 20006, postmarked by August 4.  For Registration Information call: 1-888-373-6497 or visit www.retiredamericans.org .

Did You Know...
Speaker of the House Dennis Hastert (R-IL), summing up the Republican budget and tax priorities, inadvertently showed how out of touch he is with working Americans this week when he said, "Well, folks, if you earn $40,000 a year and have a family of two, you don't pay any taxes.  So you probably, if you don't pay any taxes, you are not going to get a big tax cut."

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