[Congressional Record Volume 141, Number 135 (Friday, August 11, 1995)]
[Senate]
[Pages S12347-S12350]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                           FUNDRAISING LETTER

  Mr. SIMPSON. Mr. President, one of my nicest colleagues, some months 
ago, drew my attention to a most intriguing document that had been 
sent, unsolicited, to his splendid wife. This little gem of an item was 
sent by an organization with which I have, alas, become too well 
acquainted: The National Committee to Preserve Social Security and 
Medicare.
  I was most intrigued by this missive, and come the merciful end of 
these remarks, I trust that my colleagues will understand why. Most of 
them, I believe, already know that I have been reviewing the activities 
and structure of the American Association of Retired Persons, [AARP].
  Let me simply say here that I had chosen to review the AARP, alone 
among seniors' groups, for a variety of reasons--ranging from Federal 
grant receipts, to failure to pay appropriate taxes, to hiding a 
massive business empire behind the glossy veneer of nonprofit social 
welfare law.
  But, I took pains to point out, there is no law against distorting 
the truth. They may say some outrageous things, but there is no law 
against that. When they do that, using their first amendment rights, I 
would simply use mine to set the record straight--as I see it.
  No, Mr. President, there is no law against uttering untruths, but 
neither is there a law against pointing out untruths when they are 
uttered. And this pathetic document, from the National Committee to 
Preserve Social Security and Medicare, is a case study in distortion, 
fear-mongering, sophistry, and yes, outright falsehoods. It is a 
shameful and disgraceful exercise, concocted with only one nefarious 
purpose: to frighten senior citizens out of their money.
  Let me be directly, unmistakably clear to all out there who might be 
listening. If you are part of an organization like this, an 
organization dedicated to bilking seniors' out of their money in this 
way, please hear this: Do not take heart in my earnest review of the 
AARP. Do not assume that this is an open invitation for you to twist 
and to distort and to otherwise capitalize on the travails of your 
behemoth rival.
  Because I certainly believe that this sort of wretched activity is 
also worthy of a congressional hearing. I know that the Aging Committee 
has looked at these mail-order practices before. Perhaps it will again. 
Perhaps I will do so in my Social Security Subcommittee: The topic will 
be ``Deceptive Tactics Employed in Fundraising.'' And this item will be 
exhibit A in that hearing.
  Now, let me give a little historical background about this particular 
document:
  Some weeks ago, I met in my office with Martha McSteen, the president 
of the National Committee, along with Max Richmann of the same group. 
This meeting occurred because I felt they had reneged on a promise they 
had made to me. They had come before the Finance Committee, and I had 
criticized them severely for their distortion of the ``notch'' issue--
they had been perpetuating a notion without factual foundation, an idea 
that individuals in the ``notch'' had somehow been ``shortchanged.''
  At that time, they promised me that they would not continue to raise 
the ``notch'' issue. They conceded that the Notch Commission had 
correctly concluded that there was ``no legislative remedy.'' And so I 
was chagrined to see the ``notch issue'' raised yet again in a National 
Committee fundraising letter. So I asked them into my office to explain 
this.
  They were very contrite, and most eager to please. They assured me 
that they would not continue to beat the drum on the ``notch'' issue, 
and then made me another promise. I had challenged them to employ a 
little honesty in communications with their members. I had said to 
them, ``I hope you will not say that we are cutting or reducing 
benefits when we are only proposing to slow increases.'' And they 
replied, ``Oh, no, Senator. We aim to be very truthful in that regard, 
unlike other rival groups. We will not employ that scare tactic.''
  That is the way this group works. They come before the Congress and 
they smile, and they are accommodating, and then they send out these 
vicious, inflammatory, false statements to their membership.
  Let me read from this document to my colleagues. I have made numerous 
notes on my copy, including occasional exclamations of ``H.S.''--
initials for a phrase I shall not spell out here in this public forum.
  For example, the National Committee is particularly insistent in 
drawing a line between ``earned entitlements'' and ``welfare.'' We 
can't do anything to address spending on Medicare, they say, because 
they have all been ``paid for.'' They even go so far as to talk about 
the monthly part B premium and to say, ``None of these benefits are 
handouts. You've earned * * * them through your * * * payments into the 
system.'' 

[[Page S 12348]]

  That is a flat-out lie. Medicare part B is not paid for with payments 
into the system. It is a direct benefit, unearned, it has no trust 
fund, and it goes directly from the general taxpayer's contributions to 
beneficiaries. Unlike part A, it is not financed by payroll tax 
contributions. The premium collected under part B is paid upon 
voluntarily joining the program, and accounts for only a small fraction 
of cost. Part B is a transfer of resources--like any welfare program--
pure and simple.
  Then they go on to say that their experienced, skillful lobbyists, 
``helped convince Members of Congress to defeat the proposed balanced 
budget amendment because it did not include adequate assurances that 
Social Security would be protected.'' And further, ``Actual savings to 
Seniors * * * at least $1,000 per year.'' They go on to say that ``our 
political activism saved seniors a total of $4,521 in future retirement 
benefits.''
  Again, that is so much malarkey. First, they reached that figure by 
lumping in various Medicare measures and then saying that they had 
saved over $4,000 in retirement benefits. Medicare is a not a 
retirement program, it is a health care program. Seniors who are not 
retired can receive Medicare. So the lion's share of the claim of 
$4,521 in savings disappears right there.
  And the rest of it disappears, too, because there was never a 
suggestion that Social Security benefits would be cut because of a 
balanced budget amendment. In fact, we recently passed a budget 
resolution that meets the terms of that balanced budget amendment, and 
it does not cut 1 cent in Social Security benefits.
  So the claim by the National Committee that they had somehow saved 
seniors from over $1,000 in Social Security cuts annually is an 
outright lie. We proceeded with our resolution precisely as if the BBA 
had passed, and no such cuts are contained in it.
  The kicker, though, is that the reader is urged to send them some 
more money, so that they can save Social Security all over again. 
Another quote: ``No one else is fighting for''--enter name of the 
recipient--``in the same way the National Committee is today.'' This 
letter tells seniors that this committee is the only thing standing 
between them and the loss of their benefits.
  Outrageous, despicable, contemptible.
  I could go on--there is so much more. But let me turn to the poll 
that is contained in this letter. Here is a good one: ``Would you be 
able to maintain the retirement standard of living you're planning on 
if Congress cut Social Security and Medicare benefits by 20 percent?''
  Here is another one: ``Would your other insurance and savings be 
sufficient to cover any hospital costs you may expect to incur during 
retirement if Congress severely reduces the amounts currently paid 
under Medicare part A?''
  I cannot imagine how anyone--including my colleagues on the other 
side of the aisle--could find any factual basis for these questions. 
Even the severest critics of Republican budget plans do not allege that 
we are planning to ``reduce the amounts currently paid''--everyone on 
both sides agrees that it is only a question of how fast per capita 
Medicare expenses will rise. The latest figures are that they will go 
up from $4,800 to $6,700. Even the harshest critics contend only that 
benefits will not rise fast enough to meet expenses. For the committee 
to imply that anyone is plotting to reduce current benefits is an out-
and-out lie.
   Here is the final one that has to make you grab your sides: ``Before 
receiving this package today, were you aware that the National 
Committee's work has saved seniors thousands of dollars in future 
retirement benefits, such as the $4,521 you learned about in the 
letter?'' Well, as we have seen, that figure is a fiction, a falsehood.
  I want my colleagues to imagine the ``average'' recipient of this 
letter, who is not here in Washington, does not follow our budget 
debates, but depends upon Social Security. This letter just might 
induce them to part with what they can barely spare--to be saved from 
destruction and send it to the National Committee. And that is indeed 
the intention of this letter.
  This mailing was sent out by people preying upon our senior citizens, 
who have so little in the way of moral scruples that they seek to 
profit by using lies and fear to shake money out of them. Then they 
come here, before us, and they purport to care about the welfare of our 
elderly. What hypocritical, contemptible rubbish.
  So I will indeed consider expanding the scope of the hearings in my 
Social Security Subcommittee, the chairman permitting. Perhaps the 
subject of unethical, untruthful tactics in fundraising is something 
that deserves closer attention from us. And if and when I go forward 
with such hearings, these people will be my first subjects of inquiry.
  Mr. President, I ask unanimous consent that this letter be printed in 
the Record.
  I thank my colleagues and I yield the floor.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                   National Retirement Security Poll

       Important!
       You have been selected to represent your hometown of ------ 
     in our National Retirement Security Poll.
       Your participation in this important national poll today 
     will help protect what is rightfully yours. But before you 
     begin, let me ask you one crucial question:
       Do you know how much you now have at stake in Social 
     Security and Medicare?

       Dear Concerned American: If you've never taken the time to 
     add up your contributions over the years, the answer to my 
     question above could really shock you.
       For example, if hard-working people are now making between 
     $20,000 and $40,000 a year, their annual contribution to 
     Social Security and Medicare is between $2,000.00 and 
     $3,000.00. And if they are lucky enough to be making around 
     $60,000 a year, the amount soars to more than $4,500.00.
       That's how much will be deducted from their gross pay this 
     year--just for Social Security and Medicare!
       Of course, it may not seem that high because the money is 
     withheld from them in small amounts throughout the year.
       It could be $100.00, $200.00. $300.00, even more--each and 
     every month--for Social Security and Medicare.
       Before you fill out the enclosed National Retirement 
     Security Poll, I wanted to get you thinking about how much 
     you really have at stake through the investment you have been 
     making in Social Security and Medicare.
       Check after check. Month after month. Year after year. You 
     never see it. But it's real money.
       And now that you're approaching retirement age, those 
     benefits have become more important to you than they've ever 
     been before.
       You see, even though you've been putting all that money 
     into the system throughout your entire working life, the odds 
     are increasing every day that the Social Security and 
     Medicare benefits you're counting on for your retirement 
     years are being looked at by some politicians who want to use 
     Social Security for other causes--like deficit reduction and 
     balancing the budget.
       That is why your participation in the National Retirement 
     Security Poll is so important today.
       Your views are critical to the National Committee's 
     mission--right now--to protect your investment in Social 
     Security and Medicare. The results will be tabulated 
     confidentially and then distributed to the news media and 
     your representatives in Washington:
       Senator John W. Warner.
       Senator Charles S. Robb.
       Representative James P. Moran.
       Your immediate help in our current efforts to protect your 
     retirement security is needed. You see, your elected 
     representatives really have not heard enough from people like 
     you--people who will be retiring soon * * *
       * * * and unless we stop certain politicians in Washington 
     today, you could end up with Social Security and Medicare 
     changes being made that would affect you and your retirement 
     security.
       But the only way the politicians can get away with that, is 
     if you allow them to do it * * * if you don't take a stand * 
     * * if you don't participate in our National Poll and help us 
     protect what is rightfully yours.
       I'm sure you've been keeping up with all the threats to 
     Social Security and Medicare that have been popping up as the 
     Clinton Administration and Congress keep wrestling with the 
     budget deficit.
       (You've probably even read recently that many Americans 
     believe in the likelihood of UFOs more than they do the 
     likelihood of receiving future Social Security benefits!)
       The alarming truth is, people are losing faith in our great 
     Social Security program. And why?
       Because they keep hearing about budget tinkerers who think 
     Social Security causes the deficit and want to restructure 
     the programs in ways that would seriously undermine them.
       Still others want to subject your benefit payments to a 
     stringent ``means-test'' that would penalize you for working 
     hard and doing well--a proposal that would turn Social 
     Security into nothing more than a new welfare program!

[[Page S 12349]]

       Your Social Security is an earned entitlement, unlike 
     welfare, and has not contributed one cent to the federal 
     debt.
       Your monthly deductions have been building up your 
     eligibility for automatic inpatient hospital care when you 
     reach age 65 through Medicare Part A. You also will be able 
     to receive medical insurance for doctors' services and other 
     outpatient care at a very reasonable monthly premium 
     (currently $46.10) through Medicare Part B.
       None of these benefits are hand-outs! You've earned and 
     qualified for them through your lifetime of hard work and 
     payments into the system.
       But still, your investment in Social Security and Medicare 
     is under attack today and we must
      be vigilant in order to protect these programs.
       And something that you've invested so heavily in deserves 
     the strongest protection you provide for it.
       Let me remind you, once again, that thousands of dollars of 
     your future retirement benefits could be at stake right now!
       That is why I am contacting you today on behalf of the 
     National Committee to Preserve Social Security and Medicare 
     and asking you to participate in our National Retirement 
     Security Poll.
       The National Committee is America's largest and most 
     successful organization devoted exclusively to protecting 
     your retirement benefits through the political process.
       Over the past 10 years alone, we have helped win more than 
     a dozen major battles to protect Social Security and Medicare 
     benefits.
       Just this year we staged a massive, organized protest that 
     helped convince members of Congress to defeat the proposed 
     Balanced Budget Amendment because it did not include adequate 
     assurances that Social Security would be protected.
       Actual savings to seniors in future benefits: at least 
     $1,000.00 per year.
       In 1990, we set our sights on a budget proposal that would 
     have raised Medicare premium deductibles and co-payments by 
     $29,000,000,000.
       After three weeks of massive protest by our members, the 
     final budget reduced increases in Medicare premiums and 
     deductibles by two-thirds of what was originally called for * 
     * * saving seniors as much as $817.00 over five years in 
     future benefits.
       In response to an earlier proposal to permanently reduce 
     the Social Security COLA (Cost-of-Living Adjustment), our 
     staff delivered more than 8,000,000 signed Petitions of 
     Protest to Congress the proposal was withdrawn * * * and we 
     saved seniors about $2,064.00 over five years in future 
     benefits.
       On another occasion we overturned a Congressional attempt 
     to push through a Medicare benefit cut that would have cost 
     individual seniors about $640.00 over five years.
       The National Committee has done all this--and much, much 
     more--for seniors through the 13 years it has been in 
     existence.
       In just the four examples above, our political activism 
     saved seniors a total of $4,521.00 in future retirement 
     benefits.
       And there have been many other times that we helped save 
     seniors enormous amounts of money * * * money maybe not known 
     to be at risk of being taken away.
       Why do we do it?
       Because if we don't, who will? Unlike other organizations 
     that include political measures as one part of their service 
     to seniors, our sole focus is on using the political process 
     to secure your future.
       After working your whole life, the approach of your 
     retirement is no time to have the rug pulled out from under 
     you * * * just because our nation's budget problems have 
     gotten out of control.
       So the National Committee goes to bat for you here in 
     Washington every day.
       We make sure that the deficit mess isn't worked out on the 
     backs of people like you who have worked hard all their 
     lives.
       We protect what is rightfully yours. It's that simple.
       How do we do it?
       We use the power of numbers. Big numbers. Today the 
     National Committee enjoys the ``clout'' of over 6,000,000 
     Members and Supporters. When we speak, the politicians know 
     that we are talking for millions of voters. And you can bet 
     they listen!
       I've always said, ``I'll put the voices of a million hard-
     working, regular citizens up against a million dollars of 
     special interest money any day!''
       Yes, we have won our battles over the years because we have 
     been able to bring millions of people together in a massive 
     show of force against any messing around with their earned 
     benefits.
       We make the politicians pay attention to you. It's that 
     simple.
       That's why we've been able to protect your retirement 
     benefits--so far.
       But now the threat is more dire than it has ever been 
     before. The pressure to cut government spending is growing 
     stronger every single day on Capitol Hill and throughout 
     official Washington.
       And to make sure it doesn't start with your retirement 
     benefits, just when you're counting on them, we have to 
     become even larger and more powerful than we've ever been 
     before.
       We have to make sure that your single biggest retirement 
     asset, the money you have contributed to the Social Security 
     program, is not placed right up front on the sacrificial 
     altar of budget cutting.
       We have to stand together.
       Us--the people who have contributed so much to the system.
       Against them--those who are looking at our retirement 
     income as money they can use to solve other problems.
       Here's what you can do right now to protect your future.
       First, please take the time to fill in the enclosed 
     National Retirement Security Poll. Your answers will provide 
     our lobbyists with the information they need to educate your 
     elected representatives about what voters in their districts 
     and states think and want--especially those of you they 
     haven't heard from before!
       It also helps us prepare our message to the public when we 
     go on TV or speak to the newspapers.
       And we must get the right message out, because * * *
       * * * to hear some of the politicians and press talking 
     about our generation today, you'd think we were asking for a 
     hand-out.
       Well, you and I know that's just not true. And it's 
     certainly unfair that we have to fight so hard just to get 
     back what we have already invested in the system.
       But we have no choice * * *
       * * * we have to fight. And we have to do it in the same 
     way that our opponents do: through the political process.
       Our experienced lobbyists fan out over Capitol Hill to 
     convince officials not to tamper with your economic 
     security--not now, when you're just getting ready to enjoy 
     retirement.
       So, what could be a better investment in your retirement 
     years than the few minutes it will take you to complete your 
     Poll right now?
       We have the legislative experience and political savvy to 
     make it all work. And we depend on the critical participation 
     of affected individuals, like you, to make it all happen.
       We are totally independent of Congress, every government 
     agency, and all political parties.
       We rely on concerned individuals, like you, who are willing 
     to get involved in the struggle to make sure our nation keeps 
     its commitment to Social Security and Medicare.
       That's why, in addition to your critical participation in 
     the National Retirement Security Poll, I would like to ask 
     you to please consider supporting the National Committee's 
     work protecting your retirement benefits by becoming a 
     member.
       All it takes is a single dues payment of $10!
       By joining the National Committee now, when we need you 
     most, you will be taking the most forceful step you can take 
     to protect your Social Security and Medicare benefits before 
     they are reduced or taxed more heavily or capped.
       Only $10 Think about it * * *
       * * * think about how small an amount this is when you 
     consider the thousands of dollars the National Committee has 
     already protected for you--and what it still must do to 
     preserve your economic security throughout the glorious years 
     now stretching out before you.
       And in addition to knowing the National Committee is 
     fighting to protect your Social Security and Medicare every 
     day, your Membership also provides you with this slate of 
     valuable benefits:
       A one-year subscription to Secure Retirement, the news 
     magazine for mature Americans that's packed cover to cover 
     with information on how Social Security, Medicare and other 
     programs can help you enjoy a more secure and happy 
     retirement;
       Legislative Alerts to fast-breaking news of Washington 
     developments that involve your retirement benefits,
       An exclusive toll-Free Telephone Hotline you can call 24 
     hours a day, 7 days a week, for the very latest Social 
     Security and Medicare news from Washington; and,
       A non-transferable Membership Card that names you as a 
     Member of the National Committee--which, among other 
     privileges, gives you a vote in the National Committee's 
     annual election of its Board of Directors and on other issues 
     submitted to the Membership for a formal vote:
       And when you join, you do so with the confidence of knowing 
     you may cancel your Membership for a full refund of your $10 
     if you become unhappy with the organization at any time. No 
     questions asked.
       Just $10 is all it takes to help keep our full-time 
     lobbying force present, vocal and effective on Capitol Hill. 
     It also helps us recruit new members like you--keeping us 
     strong in numbers and political clout.
       In fact, our goal is to add at least 5,000 new members from 
     your state within the next month. And your Membership dues 
     today will get us off to a good start * * *
       * * * helping lead the charge toward our next million-
     member plateau and making us that much stronger in our 
     political representation on your behalf throughout 
     Washington.
       No one else is fighting in the same way the National 
     Committee is today.
       Now, please take your first major step toward protecting 
     your retirement benefits by turning to your official response 
     form for the National Retirement Security Poll.
       We need your opinions to show Congress just how harmful 
     their actions might be to someone in your position.
       Then, please--if you possibly can--help us protect your 
     future by joining the National Committee today with your $10 
     dues payment. We really need your help.
       And I think you need ours too.
       I'll be watching for your reply in the enclosed pre-
     addressed return envelope. And thanks for getting involved.
           Sincerely,
                                                Martha A. McSteen,
                                                        President.
     
[[Page S 12350]]

       P.S. We haven't asked for your help before--while we have 
     been helping save Seniors thousands of dollars--because you 
     weren't quite close enough to retirement. But now that that 
     time is approaching, all we ask is that you participate in 
     our National Retirement Security Poll and, if you possibly 
     can, make a modest investment of $10 and join the National 
     Committee today. Please help us help you preserve and protect 
     the thousands of dollars you have been paying into the system 
     every year. It could easily be one of the wisest investments 
     you ever make.
       P.P.S. If yours is among the first 50 responses received 
     from your state, you will receive a free portable calculator 
     similar to the one pictured on the flap of the enclosed reply 
     envelope.
       Before deciding whether or not to make a contribution to 
     our work today, please think long and hard about the 
     thousands of dollars you have been paying into the system 
     throughout your working life. That's your money, every penny 
     of it. Please help make sure you get what's coming to you by 
     making a generous contribution to our work on your behalf 
     today. Thank you for reading my letter.
                   National Retirement Security Poll

(Commissioned by the National Committee to Preserve Social Security and 
                               Medicare)

       1. Before receiving this package today, were you aware of 
     the total amount you have been contributing to Social 
     Security and Medicare every year? {time}  Yes. {time}  No.
       2. If you answered ``No'' above, were you surprised at the 
     size of the amount you have been putting into the system? 
     {time}  Yes. {time}  No.
       3. Do you expect Social Security benefits to provide a 
     significant portion of your retirement income? {time}  Yes. 
     {time}  No.
       4. What percentage of your retirement income do you expect 
     to be provided for by Social Security benefits? {time}  Less 
     than 25%; {time}  Between 25% and 50%; {time}  Between 50% 
     and 75%; and {time}  Between 75% and 100%.
       5. Would you be able to maintain the retirement standard of 
     living you're planning on if Congress cut Social Security and 
     Medicare benefits by 20% {time}  Yes. {time}  No. {time}  
     Don't Know.
       6. Would your expected retirement standard of living be 
     eroded if Congress increased the level at which the benefits 
     you have already earned are taxed? {time}  Yes. {time}  No. 
     {time}  Don't Know.
       7. Would your other insurance and savings be sufficient to 
     cover any hospital costs you may expect to incur during 
     retirement if Congress severely reduces the amounts currently 
     paid under Medicare part A? {time}  Yes. {time}  No. {time}  
     Don't Know.
       8. Would your retirement income be sufficient to pay for 
     all the outpatient costs now covered by Medicare Part B for 
     the low monthly premium of $46.10 that is currently in force? 
     {time}  Yes. {time}  No. {time}  Don't Know.
       9. How soon do you plan to retire? {time}  Within 1 year. 
     {time}  Within 3 years. {time}  Within 5 years. {time}  
     Within 10 years.
       10. Before receiving this package today, were you aware 
     that the National Committee's work has saved Seniors 
     thousands of dollars in full retirement benefits, such as the 
     $4,521.000 you learned about in the letter? {time}  Yes. 
     {time}  No.
       11. Are you willing to become a Member of the National 
     Committee to help us continue to use the political process to 
     protect and defend your retirement benefits in the future? 
     {time}  Yes. {time}  No.


                        contribution reply form

       Dear Mrs. McSteen: {time}  Yes, I've worked very had and 
     expect to have Social Security and Medicare benefits when I 
     retire. I'm counting on these benefits and that's why I want 
     to become a Member of the National Committee, to join the 
     fight to protect my retirement benefits through the political 
     process in Washington.
       My check for just $10 is enclosed. Please enroll me 
     immediately for all the benefits you told me about in your 
     letter. I understand that I may cancel my Membership any time 
     I am dissatisfied for a full refund of my $10.
       Please make your check payable to NCPSSM (or National 
     Committee to Preserve Social Security and Medicare). (Dues 
     include $3.00 for annual subscription to Secure Retirement 
     magazine.)
       Contributions or gifts to the National Committee are not 
     tax-deductible.
     

                          ____________________