Friday Alert   August 11, 2006
Alliance for Retired Americans
888 16th Street, N.W. -  Washington DC, 20006 - (202) 974-8222 - www.retiredamericans.or

Incumbents Face Uphill Battle
Most Americans say that they are in an anti-incumbent mood heading into November's midterm congressional elections, and the percentage of people who approve of their own representative's performance is at the lowest level since 1994, according to a new Washington Post-ABC News poll.  Historically, members of the public have expressed dissatisfaction with Congress as a whole but still voted for their own member, even from the majority party.  But only 55 percent now approve of their lawmaker, a seven-percentage-point drop over three months.  On Tuesday night, Sen. Joe Lieberman (D-CT) became the first incumbent Senator of 2006 to be defeated in a primary, falling to fellow Democrat and wealthy cable television businessman Ned Lamont, 52%- 48%.  However, Sen. Lieberman plans to stay in the race to keep his Senate seat by running as an independent. 

Polling currently shows Democrats with a big advantage among independents.  Adding to Republican concerns are races in Texas and Ohio.  In Texas' 22nd Congressional District, former House Majority Leader Tom DeLay's decision to outright withdraw from the race means that no Republican candidate will appear on the November ballot, which presently includes former Democratic Congressman Nick Lampson and Libertarian candidate Bob Smither.  DeLay announced his decision Tuesday, one day after Supreme Court Justice Antonin Scalia declined to block a federal appeals court ruling last week that barred Texas GOP officials from replacing DeLay on the November ballot with a candidate who lacked his political baggage.  Texas Republicans now plan to try to elect a write-in candidate.  In Ohio's 18th district, Representative Bob Ney, another Republican entangled in the corruption scandal centered on the former lobbyist Jack Abramoff, announced on Monday that he would abandon his bid for re-election.  "Members of Congress who have put special interests ahead of seniors have reason to be worried," said Edward Coyle, Executive Director of the Alliance.  "The public is onto them."

Americans United Announces New Social Security Ad Campaign
Americans United, a coalition that includes the Alliance and which was crucial to beating back Social Security privatization efforts last year,  has kicked off the second phase of its Social Security advertising campaign with new ads in five key states.  Republican Majority Leader John Boehner (R-OH) said recently that if Republicans retain control of Congress this fall, they'll "get serious" about privatizing Social Security.  In response to that and other, similar statements by elected officials, Americans United launched ads in Ohio, Pennsylvania, Montana, Florida and Missouri reminding voters that privatization remains a real threat.  The ad campaign coincides with the 71st anniversary of Social Security, which falls on Monday, August 14.  "Protecting Social Security is about securing the future and continuing a program that has proven its value because it works," said George J. Kourpias, President of the Alliance.

More Pension Plan Shortfalls
Across the nation, state and local governments have under-paid their pension funds by roughly $375 billion, according to the New York Times.  In the case of San Diego, a report released this week found that city officials broke federal securities laws and other statutes in their attempt to conceal the fact they failed to put enough money into the city's pension fund for public employees. Officials in San Diego created a complicated system to make it seem like the pension fund was in good health while in reality, it suffered from a $1.4 billion shortfall.  Another estimate, by Barclays Global Investments, calculates that if America's state pension plans were required to use the same methods as corporations, the total value of the benefits they have promised would reach $2.5 trillion, with only $1.7 trillion currently set aside to pay benefits.  There is no uniform accounting standard in place for public pension plans, which are not governed by federal pension laws.  "The mismanagement of public pension plans is a national problem that deserves national attention," said Ruben Burks, Secretary-Treasurer of the Alliance. 

Costly, Private Medicare Plans See Jump in Enrollment
Alternatives to traditional Medicare are seeing a strong increase in enrollment numbers, according to a recent Medicare Payment Advisory Commission report.  The private-sector alternatives, called Medicare Advantage plans, include several types of managed care and private, fee-for-service (PFFS) plans.  Enrollment in all types of Medicare Advantage plans increased 19% from December 2005 to July 2006, but it was the PFFS plans that recorded a massive 265% enrollment increase.  Insurers benefit from these types of plans because they can avoid having to set up networks of doctors and hospitals.  However, Medicare Advantage plans cost the government an average of 11% more than traditional Medicare.  Congress had expected Medicare Advantage plans to use the cost-control methods of managed care to save money. 

Pelosi, Reid, Shields to Headline Alliance National Convention
Come and join your fellow activists at the Alliance's 2006 National Convention, September 5-8 in Washington, D.C.  A massive Lobby Day will highlight this mid-term Election year meeting, which has a theme of "Fighting for Retirement Security."  House Minority Leader Nancy Pelosi (D-CA), Senate Minority Leader Harry Reid (D-NV), and political commentator Mark Shields are confirmed speakers, and many other key Congressional leaders and political thinkers will share their insight.  Members will elect a president and secretary-treasurer, and at-large members will also elect six community-based board members.  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) to reserve an on-site hotel room.

Did You Know...
According to USA Today, about 59% of women, vs. 53% of men, start collecting Social Security benefits at age 62.  Recipients who are able to wait until full retirement age, which ranges from 65 to 67, depending on when they were born, receive higher payments for the rest of their lives.

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