The Senior Citizens League (TSCL)
Legislative Agenda
111th Congress

With more than one million members, The Senior Citizens League (TSCL) is one of the nation's largest nonpartisan seniors groups. Its’ mission is to promote and assist TSCL members and supporters, to educate and alert senior citizens about their rights and freedoms as U.S. citizens, and to protect and defend the benefits  earned and paid for by senior citizens.

At TSCL we strive to defend those issues that are most important to our members and supporters.  That’s why, each year, we survey our members and ask them, “What’s important to you?”  We take those answers and base our legislative agenda around them.

With a newly elected President and fresh start for the U.S. Senate and U.S. House of Representatives, individuals and groups both on and off Capitol Hill are hopeful that meaningful Social Security and Medicare reform will be considered before it is too late to help either entitlement program.

Comprehensive Social Security Reform
Long-term solvency of the Social Security program is essential.  At the initiative of the President’s Administration efforts to reform Social Security included partial privatization.  Because of public opposition, including that of TSCL, efforts to reform Social Security via privatization were quietly dropped.

TSCL fears among other things that a new Notch could be created in a transition to a private accounts-based Social Security.  Also, TSCL members generally believe that such privatization approaches could further drain the Social Security Trust Fund.  Finally, it is thought that the private accounts venture would be at least partially financed by cutting the benefits of current or soon-to-be retirees.  Because TSCL believes that Social Security was developed and implemented to be a safety net, insurance and pension system, it strongly opposes such proposed changes to the current system.

With the onset of the 111th Congress, there is optimism that a new Administration will lead to a renewed interest in strengthening the Social Security system and its solvency.  If such comprehensive entitlement reform ever takes place in the Congress, it is the hope of TSCL that the following sub-topics are fairly rectified as part of a general solution and avoided for future generations.

COLA Fairness
TSCL strongly believes that the Social Security cost-of-living adjustment (COLA) that seniors are currently receiving does not accurately reflect how they must spend their money.  The COLA is based on a consumer price index (CPI) that reflects how young urban workers tend to spend their money and substitute products when prices fluctuate.  Older Americans spend a disproportionate share of their household budget on health care.  Since health care costs continue to rise so quickly – and since most health care spending cannot be substituted out for something cheaper – TSCL believes that seniors would be better served if their COLA was based upon a different consumer price index, one that already in fact exists.

The Bureau of Labor Statistics has been keeping track of a consumer price index for elderly consumers, or CPI-E, for more than 20 years.  This calculation regularly puts the spending inflation for seniors at three-tenths a point higher than the rate at which the consumer price index for young urban workers – the CPI-W – increases.  TSCL members and supporters believe that this consumer price index for the elderly – CPI-E – should be fully implemented and utilized for determining seniors’ Social Security cost-of-living adjustments each year.

TSCL estimates that a senior who retired with average benefits in 2007 would receive about $18,277 more in benefits over a 25-year retirement if the government were to use the CPI-E to calculate the COLA.

Two bills, H.R. 1953 and H.R. 2032, were introduced during the 110th Congress that would base the Social Security COLA on the CPI-E. TSCL is very supportive of this legislation and is hopeful that the Consumer Price Index for Elderly Consumers Act will be introduced in the Senate and reintroduced in the House during the 111th Congress.

Notch Reform
The Senior Citizens League members and supporters tend to be older, less affluent seniors.  They are also, to a large extent, Notch babies – those individuals who receive lower Social Security benefits because they were born in the years 1917 and immediately thereafter.  TSCL feels that this is an inequity that was brought about because of the Social Security Act Amendments enacted and signed into law in 1977. 

Just years before they were set to retire, these individuals learned that they would have significantly lower benefits than originally anticipated.  The problem only grew and compounded with the inflation that occurred in the early 1980s.  Thus, in order to make the Social Security program more equitable in general, and to correct a wrong done to Notch babies, we believe that some compensation for that injustice should be provided.

TSCL strongly supports legislation such as the Notch Fairness Act, which would provide either a $5,000 lump-sum payment (payable in four installments) or an increased monthly benefit calculation to Notch babies.  We were pleased when Congressman Ralph Hall’s legislation, H.R. 368, got a record-breaking 126 co-sponsors in the 110th Congress – more than in any other session of Congress since the lump-sum proposal was introduced. 

We will continue to educate new Members of the House and Senate about the Notch and to work with past supporters of the Notch.  With an increasing number of Notch co-sponsors during each of the last three sessions of Congress, we are hopeful that some type of Notch reform will be considered this session.

Totalization Agreement 
Social Security Totalization Agreements are designed so that workers and their employers would not be subject to double taxation, owing payroll taxes to both the country in which they work, and their home nation.  In addition, totalization agreements allow workers to earn generic work "credits" good for receiving retirement benefits in either country.  These credits from the United States and other countries can be totaled together to receive benefits. The U.S. currently has 24 totalization agreements with other nations, most having economies similar to our own.

The U.S. – Mexico Totalization Agreement—which was signed by the Social Security Administrations of both the U.S. and Mexico in 2004, and is due to undergo review by the current or future President(s)—continues to pose a threat to Social Security beneficiaries.  Because of a loophole, if the President signs the final Executive Totalization Social Security Agreement with Mexico, it could lead to Social Security benefits going to individuals who worked in the U.S. while illegal. 

Despite the efforts of TSCL and others, knowledge of the U.S – Mexico Totalization Agreement remains limited on Capitol Hill, and the issue flies under radar for the most part.  TSCL has expressed its support for resolutions in opposition to the Totalization Agreement. In addition, TSCL is supportive of legislation, such as the Social Security Totalization Agreement Reform Act, which would grant more time for congressional review of these agreements.

TSCL has placed ads in The Washington Times in opposition to the proposed agreement and will continue to closely monitor the Totalization matter during the upcoming session of Congress.

Protection of the Social Security Trust Fund
The executive and legislative branches of government have, in many instances, used the so-called “excess funds” – monies not needed immediately to pay out for benefits – in the Social Security Trust Fund for other purposes, such as “pork” projects in their home districts.  TSCL members and supporters fervently seek protection of the Social Security Trust Fund – the monies provided for by the payroll taxes imposed for just that reason – and an ending of the practice by which politicians use that money for other purposes and replace the funds with a mere IOU.

Several Members of Congress have sought to protect the monies in the Social Security Trust Fund by locking them out of the general budget.  TSCL is supportive of legislation such as the Social Security and Medicare Lock-Box Act. However, we are concerned that a bill signed into law may be circumvented as in the past.  We also understand the difficulty and length of time required in the ratification of a constitutional amendment.

Medicare Part B
The increases in the Medicare Part B premium, as well as the rise in the Medicare deductible, are two additional issues of grave concern to our members and supporters.  In some cases, the increase in these two items comes close to offsetting the Social Security COLA that a senior has received. 

Thus many low income seniors, whom are already strapped and close to poverty, are being kicked in the knee again. The affected seniors are being promised assistance for the high costs of drugs by way of passage of a prescription drug bill only to find out that premiums and deductibles are higher.

As a result, TSCL is supportive of legislation that would eliminate the means, or asset, test used to determine one’s premium. Seniors should not be punished for attempting to plan for their retirement. We will continue to listen to our members and supporters as to how these increased costs are affecting their standard of living.

Medicare Part D 
Although the Medicare prescription drug benefit, or Part D, has been viewed by some as largely successful, TSCL believes this program remains flawed. TSCL considers it necessary to compile feedback on the measure of success or failure of the program and its doughnut-hole phase.

The price of many prescription drugs dramatically increased after the benefit was implemented and continues to do so. This is due in large part to the cost of brand name and specialty drugs for which there is no generic or lower-cost alternative. These medications are often placed in “specialty tiers” that significantly drives up out-of-pocket costs and can cause beneficiaries to hit the doughnut-hole gap in coverage sooner. 

The doughnut-hole coverage gap continues to grow deeper.  In 2008, Medicare beneficiaries had a $2,510 initial coverage limit, and then had to spend a total of $4,050 out of pocket before catastrophic coverage would start.  The amount of total out-of-pocket spending was up from $3,850 in 2007.  Another problem is the almost total lack of drug plans that cover brand name drugs in the doughnut hole.

TSCL is supportive of increasing and improving outreach to seniors, especially those individuals that could qualify for Extra Help. Simplifying and streamlining the application process would also be a vast improvement the program. In addition to improving Medicare Part D and supporting safe prescription drug re-importation, TSCL will continue to seek other potential solutions for lowering the price of drugs for America’s seniors.

Prescription Drug Re-importation
TSCL supports bills in the House and Senate that would, in our view, make safe and secure prescription drug re-importation a reality. TSCL believes that the Medicare prescription drug benefit law is flawed and with the full implementation of Medicare Part D complete, further attention should be given and action taken to lower prescription drug costs.

The disparity of drug costs in the United States, Canada and Europe remains striking.  In Canada, one can purchase a 90 day supply of Lipitor for $154.34, but in the U.S. the same prescription is $321.30. Plavix purchased in Canada costs $252.90, but in the United States, costs $370.41.

Just when the Medicare Modernization Act took effect, many pharmaceutical companies were observed increasing their prices.  TSCL has also seen and heard of corporations that have threatened to cut off the supply of medicines to companies exporting medicines to the United States.  There have been cries from the pharmaceutical industry saying the high profit margin is needed to help pay for research and development.  At the same time huge amounts of funds have been spent by the industry to hire lobbyists and to advertise nationwide.  TSCL believes the health of our seniors should come first.

TSCL will work to ensure that legislation permitting the safe reimportation of prescription drugs is reintroduced in both Chambers during the 111th Congress.  The goal remains to seek safe and affordable medicines for all Americans.

TSCL Seniors Health Initiative
Complementing our efforts to protect Medicare benefits, TSCL launched the Seniors Health Initiative to monitor federal policies and defend the interests of seniors regarding access to pharmaceutical drugs, complementary and alternative medicine therapies, dietary supplements (including vitamins and minerals), and other health services and products.

Among other work, TSCL filed comments before the Food and Drug Administration; an amicus curiae brief in the U.S. Supreme Court; and drafted legislation for introduction in the U.S. Congress.

The TSCL legislative team, its all-volunteer Board of Trustees, and the TSCL administrative staff, will continue working on behalf of seniors, offering not only lobbying efforts, but also information via our website and newsletter, member benefits and responding to each and every phone call and letter.