Friday Alert   July 14, 2006
Alliance for Retired Americans
888 16th Street, N.W. -  Washington DC, 20006 - (202) 974-8222 - www.retiredamericans.or

Social Security Under Attack
The Bush Administration released its mid-session budget review on Tuesday, and it included a proposal to spend $721 billion over the next ten years to privatize Social Security - $9 billion more than originally proposed.  In a speech on the budget, President Bush specifically alluded to the cuts to Social Security benefits which would be required as part of his plan, saying, "We need to cut entitlement spending."  Americans United, a coalition that includes the Alliance and was crucial to beating back privatization efforts last year, is mounting a renewed campaign to call attention to individual politicians' positions on the issue.  The group is drafting scripts for a national media campaign against candidates and incumbents, including Sen. Rick Santorum (R-PA) and Rep. Clay Shaw (R-FL).  Americans United plans to begin the advertising blitz no later than the first week in August, kicking off in as many as five of its nearly 20 targeted states. 

Previously, on a June 20 party-line vote, the Senate Budget Committee approved in a bill, S. 3521, a separate assault on Social Security that uses the line-item veto to make major changes in Federal budget laws.  While described as a measure to restore fiscal discipline, the legislation actually represents a sneak attack on Social Security and Medicare.  If enacted, S. 3521 would establish two commissions, either of which could be used to privatize Social Security and make deep cuts in Social Security and Medicare benefits.  The "entitlements commission" would study Social Security, Medicare and Medicaid, and propose changes to these programs.  The "sunset commission" is designed to evaluate Federal programs and then eliminate or modify them as the commission sees fit.  The recommendations of both commissions would be considered under fast track procedures, allowing little public notice or debate, and few, if any, opportunities for senators to offer amendments.  "The line item veto is often described as a tool to eliminate wasteful, 'pork barrel spending,' but this line item veto goes much further," said Edward Coyle, Executive Director of the Alliance.  "This could be used to eliminate improvements to Medicare and Social Security."

Senate Approves Drug Importation
The Senate approved a proposal, by a vote of 68-32, that would prohibit Customs and Border Protection from stopping people from bringing prescription medicine into the U.S. from Canada if they have a doctor's prescription and the drugs are FDA-approved.  The plan, offered by Sen. David Vitter (R-LA), was part of the Homeland Security Department's spending blueprint.  Included among those who voted against the money-saving proposal was Sen. Santorum, who issued a statement regarding his "deep disappointment" in the Senate.  "There are some Senators claiming drug importation will hurt the health of Americans or allow more terrorist opportunities," said Ruben Burks, Secretary Treasurer of the Alliance.  "The only real harm drug importation from Canada poses is hurting the bottom line of the often-greedy drug industry."  The importation language could be stripped out during conference negotiations with the House.

Americans Not Retiring When They Plan To
For those planning to continue working past 60, a recent USA Today article reports some sobering statistics that may put a wrench in those plans.  Nearly half of baby boomers expect to work past 65, but the average age current retirees left the workforce was 59, according to a survey by consulting firm McKinsey & Co.  The Bureau of Labor Statistics reports that 60% of 60 year-olds, 32% of 65 year-olds and only 19% of 70 year-olds were employed in 2005.  Health problems and job loss or company downsizing were the two most common causes cited for earlier-than-planned retirements.  "These numbers show age discrimination is still rampant in the workplace," said George J. Kourpias, President of the Alliance.  In fact, more than 60% of current working executives think age discrimination has become more widespread in the past 5 years, according to a survey by ExecuNet.  To back up the feelings of age bias in the workplace, a study by the Center for Retirement Research at Boston College found that a younger worker is over 40% more likely to be called for an interview than a worker age 50 or older, despite the experience difference.  "We must call on Congress to pass legislation that will not only protect jobs for older Americans, but strengthen training programs so older workers can remain competitive in the workforce," said George Kourpias.

CEOs Doing OK Despite Underlings' Frozen Pensions
CBS News has reported that in 2006, more than 100 of the Fortune 1,000 biggest companies have terminated or frozen pension plans, complaining of the costs.  But in many cases the companies' leaders' benefits are getting bigger.  For example, AT&T's CEO, Edward Whitacre, will be entitled in November to a yearly pension of $5.4 million for life.  The Wall Street Journal found that 45 percent of AT&T's pension expenses go to just 1,500 top executives - less than 1% of the total number of AT&T workers.  The rest covers the other 189,000 employees.

Alliance National Convention Coming in September
The National Convention is coming up September 5-8, 2006 in Washington, D.C.  Political commentator Mark Shields is a confirmed speaker.  Many more key Congressional leaders and political thinkers will share their wisdom for 2006.  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.  Register for the convention by calling 1-888-373-6497 or visit www.retiredamericans.org.  Attendees must register separately with the Washington Hilton and Towers (1-888-324-4586) by August 3 to get the Alliance Convention rate.

Did You Know...
Florida, Pennsylvania, West Virginia and Iowa are the 4 states in the nation with the highest percentages of population aged 65 and older, as found by the 2000 census.

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