[Congressional Record (Bound Edition), Volume 149 (2003), Part 4]
[Extensions of Remarks]
[Page 5589]
[From the U.S. Government Publishing Office, www.gpo.gov]




             TO REVOKE THE FEDERAL CHARTER GRANTED TO TREA

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                         HON. GERALD D. KLECZKA

                              of wisconsin

                    in the house of representatives

                        Thursday, March 6, 2003

  Mr. KLECZKA. Mr. Speaker, today I am reintroducing a bill to revoke 
the federal charter that was granted to the Retired Enlisted 
Association (TREA) in 1992. TREA is an organization that has repeatedly 
targeted seniors with ``notch'' mailings 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 discrepancy arose because of a law enacted in 1972 
providing automatic cost-of-living adjustments for Social Security 
recipients. However, the formula used to compute these annual increases 
was significantly flawed, causing benefits to rise faster than the rate 
of inflation.
  In 1977, Congress corrected this defective formula (thereby reducing 
benefit levels) in order to prevent Social Security payments from 
skyrocketing. Had such revision not been made, many future 
beneficiaries would have received Social Security checks that were 
larger than their pre-retirement earnings. Moreover, the entire system 
would have become insolvent within 3 or 4 years.
  The National Academy of Social Insurance, the General Accounting 
Office, the Social Security Administration, and the Congressionally-
appointed Social Security Notch Commission have since concluded that 
the 1977 benefit changes were urgently needed and that Social Security 
beneficiaries born during the notch period are receiving correct 
benefit amounts. They also found that increasing benefits for ``notch 
babies'' would not only be unjustified, but would unnecessarily 
jeopardize the financial stability of the Social Security system.
  Yet, despite these conclusive findings, TREA currently operates a 
multi-million dollar fundraising scheme based on the notch issue. This 
group tells seniors it is working hard to correct a notch ``problem'' 
that doesn't exist in an attempt to scam seniors out of their hard-
earned money. Under the guise of advocating for legislative reform, 
TREA collected over $46 million from seniors over four years (1997 to 
2000), and its moneymaking campaign continues.
  In addition, the tactics used by TREA to solicit money from elderly 
individuals are deplorable. Included among TREA's numerous deceptive 
mailings are official-looking notch identification cards and 
registration forms that give the mistaken impression that this group 
has the authority to handle the distribution of Social Security 
benefits, TREA also sends solicitations containing replicas of Social 
Security checks, thereby reinforcing this image. Perhaps the most 
disturbing, the group's fundraising efforts have even included mailings 
that ask seniors to redraft their wills to make TREA a beneficiary.
  In order to stop the exploitation of America's seniors, I am 
reintroducing a bill that would revoke the federal 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 
clearly violates the high standards held for chartered groups. 
Moreover, allowing TREA to maintain its charter would send a signal to 
the American public that Congress condones such behavior.
  Six bipartisan members of the House Ways and Means Social Security 
Subcommittee have joined me today in support of this legislation-
including Chairman Shaw and Ranking Member Matsui. I urge my colleagues 
to cosponsor this measure.

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