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AARP Head Discusses Social Security
AARP
October 20, 2005
The president of AARP lambasted President Bush's discredited plan to make over Social Security by bolting private-investment accounts to the senior citizen's safety net.
"If you didn't look beyond the superficial promises made by the supporters of private accounts," Marie Smith said, "the Social Security debate of 2005 has not focused on long-range solutions."
Smith, the national president of AARP since April 2004, gave the keynote address Saturday afternoon to 50 interested senior citizens at the Celebrating Life Senior & Baby Boomer Expo held at the Valley Forge Convention Center.
"AARP is dedicated to making sure the promise of Social Security is fulfilled," she said. "Social Security is the only guaranteed, inflation-proof retirement benefit."
Smith said the average retired worker is entitled to benefits that equal a $400,000 life-insurance policy and a $350,000 long-term disability policy.
She was adamant in asserting the long-term solvency of the Social Security system.
"Social Security is not in crisis," she said. "The trust fund is large enough to pay full benefits to retirees through 2041. After 2041, even if no changes are made, the fund has enough money to pay 70 percent of benefits."
AARP publicly led the opposition to President Bush's plan to privatize part of Social Security. The senior citizens' organization was joined by members of Congress and the General Accounting Office in opposing the president's plan.
Smith was drafted to serve as president by AARP's board of directors after serving as a board member since 2001. She was a member of AARP's national legislative council for seven years.
The former Social Security administrator worked for 25 years at several Social Security offices, starting in Chicago in 1961 as a claims representative. She managed Social Security offices in Baltimore, several California towns and Maui, Hawaii. Smith worked for 10 years as a realtor before she started volunteer work for AARP 15 years ago. She has been cited by Ebony magazine as one of America's 100 most influential black leaders.
AARP supports the proposal to begin solving Social Security's long-range financial problem by raising the income cap on wages subject to Social Security from $90,000 to $140,000.
Smith said AARP did not favor a higher income cap because the organization's leaders want broad support for the $140,000 cap.
With new Medicare Part D prescription plans being rolled out this month by health-insurance companies, AARP is gearing up to help senior citizens choose which plan will be cost-effective. In the first year of the program, Medicare recipients can begin enrolling in the program Nov. 15. The plans will begin Jan. 1, 2006. The last day to enroll in the first year without incurring a 12-percent premium penalty is May 15, 2006.
The prescription plans come with an average monthly premium payment of $32, a $250 annual deductible for expenses and limitations on payments. From $250 to $2,250, the plans pay 75 percent, or up to $1,500 of prescription costs.
Prescription expenses between $2,250 and $5,100 are the responsibility of the Medicare patient. Ninety-five percent of drug expenses above $5,100 are paid by the Medicare insurance plan.
AARP expert Desiree Petris said that the monthly costs approved medications and approved pharmacies would differ between the 52 plans offered in Pennsylvania by 32 companies.
AARP has 1.8 million members in Pennsylvania, the state with the second highest proportion of elderly residents after Florida. The nonprofit organization, with an annual budget of $650 million, has nearly 36 million members nationwide, Smith said.
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