[Congressional Record Volume 148, Number 19 (Thursday, February 28, 2002)]
[Extensions of Remarks]
[Page E227]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                       THE SENIORS PROTECTION ACT

                                 ______
                                 

                         HON. GERALD D. KLECZKA

                              of wisconsin

                    in the house of representatives

                      Wednesday, February 27, 2002

  Mr. KLECZKA. Mr. Speaker, the Retired Enlisted Association's Senior 
Citizens League (TREA) is a non-profit organization that professes to 
help seniors by promoting legislative reforms that will advance the 
interests of elderly individuals. However, contrary to its claims, TREA 
has repeatedly targeted seniors with mailings about the ``Notch'' issue 
that are deceptive, false, and designed to extort money from elderly 
persons, many of whom live on limited incomes.
  The term ``Notch'' refers to the difference in Social Security 
benefits paid to individuals born before 1917 versus those born between 
1917 and 1921. This difference arose because a law was passed in 1972 
that provided automatic cost-of-living adjustments for all Social 
Security recipients, so that benefits would keep pace with inflation. 
However, the formula used was flawed, causing benefit levels to rise 
faster than the rate of inflation. In 1977, Congress corrected this 
formula, necessitating a reduction to the correct level of Social 
Security benefits.
  Unfortunately, groups like TREA are telling seniors they are working 
to correct a Notch ``problem'' that doesn't exist, in an attempt to 
scam seniors out of their hard-earned money. The Social Security 
Administration, State Attorney General offices, and Members of Congress 
have received numerous complaints and questions from seniors who have 
been confused and misled by TREA's Notch campaign.
  In response to these complaints, the Ways and Means Social Security 
Subcommittee held a hearing on July 26, 2001 to investigate TREA's 
activities. This hearing uncovered numerous deceptive tactics used by 
this organization.
  For example, TREA purports to have the authority to handle 
distribution of Social Security benefits by mailing seniors an official 
looking ``Notch Registry'' identification card and a ``National Notch 
Victim Register'' form that asks seniors to specify whether they prefer 
their $5,000 Notch payment sent to them in one lump sum or in 
installments. Seniors' preferences are requested in spite of the fact 
that Notch payments have not been authorized by Congress, and even if 
they were, distribution of such payments would be handled exclusively 
by the Social Security Administration. TREA also disseminates 
solicitations containing replicas of Social Security checks written in 
the amount of $5,000.
  Perhaps the most disturbing of all, TREA's fundraising efforts have 
included mailing solicitations that ask seniors to redraft their wills 
to make TREA a beneficiary. Specific instructions for such will 
preparation are even provided.
  During the Subcommittee hearing, it was discovered that TREA Senior 
Citizens League used its mailings to collect over $46 million from 
seniors from 1997 to 2000, with $12 million of that in the year 2000 
alone.
  It is clear that Congress can no longer turn a blind eye to TREA's 
fundraising schemes, which seek to exploit America's seniors in the 
name of legislative reform. Despite repeated warnings by House members 
to end the barrage of misleading solicitations, TREA has refused to 
comply with such requests.
  TREA's actions leave me with little choice but to introduce a bill 
that would revoke the Congressional charter granted to TREA in 1992. 
While Congress rarely revisits a former charter decision, this group's 
persistent pattern of fleecing seniors clearly warrants such a step. 
Federal charters are prestigious distinctions awarded to organizations 
with a patriotic, charitable, or educational purpose. Although intended 
as an honorific title, a Federal charter implies government support for 
such organizations. Misleading America's seniors is clearly not 
patriotic, charitable, or educational, and allowing TREA to maintain 
its Federal charter would send a signal to the American public that 
Congress condones such behavior. I urge my colleagues to cosponsor this 
legislation.

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