Testimony Before the Subcommittee on Social Security
of the House Committee on Ways and Means
Hearing on Misleading Mailings Targeted to Seniors
July 26, 2001
Introduction
Mr. Chairman and Members of the House Ways and Means Committee's Subcommittee on Social Security, my name is George Smith. After serving 21 years in the United States Army, I now am honored to serve as the volunteer Chairman of the Board of Trustees of TREA Senior Citizens League, which also is known as TSCL.
Both TSCL and I share your deep concern about senior citizens, including the need to protect our senior citizens from those who seek to extract their personal information, possibly for illegal purposes. It is a pleasure to be here to testify on behalf of TSCL on this very important issue.
At the beginning, I should say that I am "social security qualified" to give my views to this Subcommittee, being 70 years old. My fellow Board of Trustees members are likewise fully qualified for their important responsibilities on the Board, most being over the age of 65.
TREA Senior Citizens League
Please allow me to provide you some background on TREA Senior Citizens League. TSCL was established in 1993 as a special nonprofit project of The Retired Enlisted Association (TREA), a tax exempt organization founded in 1963 and chartered by an act of Congress. In 1994, TSCL was separately charged as an affiliate of TREA, and in June 1995, the IRS recognized TSCL as an Internal Revenue Code section 501(c)(4) nonprofit, social welfare organization and civic league.
TSCL is open to anyone who is concerned about protecting his or her earned retirement benefits, and we send out many of TSCL's action packets and other materials to members and nonmembers alike. You need not send a contribution to be placed on our supporter list and receive many of our public service booklets, informational literature and action packets. In fact, any member of the public can request and receive any of our informational literature, at no charge, at any time, and many do. Currently, TSCL has approximately 1.2 million members and supporters, nearly all of whom are over the age of 60.
In keeping with our mission to defend and protect our members' earned retirement benefits, TSCL currently employs three full-time registered lobbyists dedicated to working for fair Social Security laws, and for changes to modernize, upgrade, and stabilize the Medicare program.
Representing the wishes of our members and supporters sometimes means we take issue with government policies. We believe it is our duty to advance the interests of our constituency, even though, from time to time, doing so may cause us to differ with the Social Security Administration, or even some Members of this Subcommittee. I have included our 2001 Legislative Agenda as Attachment A so that you may see more fully the scope of issues on which we work.
In addition to our legislative efforts we also spend a large portion of our resources and time in educating our members on important issues affecting their benefits. TSCL members receive a copy of our flagship publication, The Social Security & Medicare Advisor newsletter, 10 times a year.
We have also developed and distributed numerous publications and booklets educating our members on such topics as "The Senior Survival Guide to the Medicare Maze," "The Senior Survival Guide to Caregiving," and my personal favorite, "The Senior Activist's Survival Manual," which we use to educate our members on how to communicate effectively with their Congressional Representatives.
By the way, every Congressional office receives a copy of our newsletter each time it is published and has done so for several years. Many Members of Congress use our "Congressional Corner" article to communicate with TSCL's members. We also send Members of Congress and other public officials a variety of policy papers, booklets and information. We have provided written testimony for the record for a variety of Committees, including the House Ways and Means Committee's Subcommittees on Health and on Social Security, and the Senate Committee on Finance. We are also members of The Free Speech Coalition, The Military Coalition and the National Military and Veterans' Alliance.
Our education efforts and communications with TSCL members and senior citizens in general are also enhanced through our website, www.tscl.org, where members can search through thousands of pages of information on Social Security and Medicare issues, and contact their Congressional representatives through the website's Legislative Action Center. We have also created a new Speaker's Forum where our three lobbyists are available to address seniors' groups and organizations on TSCL legislative issues.
Finally, we offer our members a number of membership benefits, including our MatureRx Prescription card. (Let me just say here that, this free member benefit meets, and probably exceeds, the standards laid out in the President's recent proposal for a senior discount drug program.) We also offer various other discounts on car rentals, moving van services, and like items. Unlike many other organizations, TSCL does not generate any revenue from these member benefits, nor does TSCL "sell" its members anything such as insurance.
Again, time does not permit me to enumerate all that we are doing for our TSCL members and supporters, but it is a substantial amount of activity. I have with me several copies of our TREA Senior Citizens League 2000 Annual Report, and they are available to interested members of the public on request.
The Hoax Flyers
We advise seniors to guard closely their private information, including their Social Security Number. We never, ever, solicit this type of information for our records, nor do we store it on our database. Thus, I was particularly disturbed by the Social Security Administration Inspector General's Report of July 6, 2001, and its implication that TSCL might have had something to do with requests for Social Security numbers and other misinformation in the hoax flyers talked about in that report.
I'm hoping that by the end of this hearing you will see that we too are victims of these hoax flyers, that we have tried to determine their origin, and that we have worked responsibly to counteract the misinformation these flyers have created ever since we first learned of them.
Let me be clear: TSCL and/or its service providers never put out, distributed, or were associated in any way with these flyers. Our only involvement was that the hoaxer used some variation of our name and our post office box number on the flyers. Regrettably, approximately 29,000 seniors were misled into wasting their time and the cost of a stamp after reading these flyers. I am sure many had their hopes dashed when we informed them they were misled. But the hoaxer who started sending out the flyers that caused this investigation also cost us a substantial amount of money and time as we struggled to inform the flood of some 29,000 people that they had been misled.
It is our understanding that we were the first to alert the United States Postal Service authorities when this hoax started. And, last year, long before the Social Security Administration published their warning, we put up a special consumer website (www.tsclconsumeralert.org) with full details on the hoax to make sure the public and our supporters knew about the hoax. At every possible opportunity we have warned, and continue to warn, our supporters in particular, and older Americans in general, to never give out Social Security Numbers except as specifically required by law.
Since last August, we have distributed six press releases warning the public that the flyers are a hoax (Attachment B). These press releases went out to about 1,300 senior-related publications in addition to media in areas where we heard flyers had cropped up. In addition, we sent press releases to the National Newspaper Publishers' Association, which represents over 200 African American publications. Our press releases were also sent to every Member of Congress. We've contacted dozens of elected and non-elected government officials, including the SSA's Headquarters Press Officer and each regional SSA Press Officer. The office of the Secretary of Veterans Affairs told us they'd be sure to get the word out to all of their regional offices as well as every VA hospital and clinic. The folks at the Better Business Bureau also agreed to spread the word to their regional offices.
As a result of this massive public education effort undertaken solely at the expense and time of TSCL, we seem to have been able to help put a stop to the spread of this hoax. The influx of people responding to the hoax flyer dwindled to a trickle by the end of January. Only a handful have shown up for the past several months.
Far worse than the expenses we've incurred or the huge amount of time we've had to devote to fighting this hoax, is that our good name may now be questioned as a result of this hoax.
Setting the Record Straight
The letter to me from the Subcommittee requesting my testimony today states that the Social Security Administration's Inspector General (SSA's IG) had completed investigations about "two types of misleading mailings," and that the focus of the hearing would be on "several different mailings, including slave reparation and notch...." The Subcommittee sent me a subpoena so that I "may respond to questions ... regarding TSCL's actions relative to these mailings."
The Subcommittee's letter prompted a response from me, which was hand-delivered on Monday, July 23 (Attachment C). The SSA's IG's Report of July 6, 2001 reveals that IG investigated two types of flyers. Those flyers, which have been referred to as "hoax flyers," were crude single page flyers that were apparently widely distributed in certain parts of the country. The Subcommittee's letter indicates that, according to the SSA IG's Report, "TSCL responded to the mail generated by these flyers by directing its data processing firm to create a database containing the respondent's personal information." This information was drawn from the IG's Report, and is misleading, if not absolutely false. The only data from the respondents we recorded were their names and addresses. These items were necessary so we could write to the respondents and tell them they had been misinformed. TSCL absolutely did not record any other personal information. Any claim that TSCL entered Social Security Numbers into a database or otherwise recorded those numbers in any way is untrue. TSCL never records Social Security Numbers, and in fact advises seniors to be wary about giving out their Social Security Numbers.
Finally, my response points out that the Subcommittee's letter quoted statements contained in the SSA IG's recent Report, that "TSCL ... wrote to each victim disavowing any responsibility for the flyers, but included TSCL's standard fundraising brochure." That statement is incomplete and misleading. TSCL tried to correctly inform respondents who had been misinformed by the hoax flyers. We sent respondents a letter informing them that the flyers they had received were inaccurate, and we included a brief, descriptive brochure to provide additional background on our organization. No reply envelope was provided and no reply was anticipated. Most important, a representative of the SSA IG's office was shown the contents of this mailing, including the brochure, before it was ever mailed, and TSCL even made changes to the letter based on the request of that SSA representative.
After reading and rereading the SSA IG's Report of July 6, 2001, I replied to the Acting Commissioner of Social Security, pointing out several unfair statements in the SSA IG's Report (Attachment D).
Obviously, today's hearing was initiated by the Subcommittee's concern about the delivery of misleading information to senior citizens, and it is important that such information, such as the hoax flyers, be exposed as false. This is good for seniors, and good for the entire country.
Conclusion
In summary, we have done everything we can to inform both our supporters and senior citizens-at-large about this hoax.
In fact, I believe the public education campaign we launched after we first began seeing the flyers was so effective that it has helped slow the spread of the flyers -- certainly, the number of inquiries we receive has slowed from hundreds a day to a handful each month. Since there is no guarantee that this hoax will not be resuscitated, we are keeping our "Consumer Alert Website" updated, and we are continuing to remind both our supporters and the public to never give out their Social Security numbers or other private information.
I don't think I am being immodest in saying that TSCL's response to this could serve as a model for others who may have to rapidly respond to fast circulating, but inaccurate, claims such as those made in the hoax flyers.
Finally, and unfortunately, although TSCL did nothing wrong, the Social Security Administration, in its report, was willing to leave the impression that we did -- this seems unfair.
Mr. Chairman, in our response back to the SSA's IG Report we requested that the record be set straight (see Attachment D). Therefore, we would appreciate any assistance you might be able to offer in getting the OIG Report corrected.
Attachment A
YEAR 2001 LEGISLATIVE AGENDA
January 2001
"In Defense and Protection of Earned Benefits"
In 2001, TREA Senior Citizens League's goals are to work for fair Social Security reform and for changes to modernize, upgrade and stabilize the Medicare program. TSCL will also continue to expand its legislative agenda to address other issues of importance to seniors such as increasing access to affordable long-term care, improving the quality of nursing home care, and enacting a fair Patients Bill of Rights.
As TSCL continues to work for these goals, it recognizes that the solutions to many of these problems will require Congress to authorize additional outlays of funds. The price of reform is often very high. However, as the country is in an unprecedented time of prosperity with the budget running huge surpluses, TSCL firmly believes that a significant portion of these surpluses should be dedicated to immediate and long-term reforms of Social Security and Medicare. Therefore TSCL urges the Administration and Congress fairly allocate any budget surplus to long term strengthening of the Social Security and Medicare trust funds; to immediate fixes such an improved and accurate COLA, Notch Reform and some form of optional, low-cost, prescription drug coverage; and lastly to tax cuts.
Medicare Improvements:
TSCL Position: TSCL will lend its full support and urge the grassroots efforts of its members and supporters to enable the passage of any proposed Medicare prescription drug benefit that is universal, voluntary, understandable, responsible and most importantly affordable. TSCL has and will continue to monitor the many prescription drug benefit proposals that surfaced in 2000 and that can be expected in 2001. TSCL remains objective in its view towards a prescription drug benefit in that the League supports virtually any effort that provides older Americans with some financial relief at the pharmacy window. However, the League does not support inaction or delaying tactics that only serve to prolong the hardships being experienced by older Americans.
This means we may from time to time support a bill that may not include all of the needed items but will benefit many. In no way will this preclude our continuing efforts to achieve all the needed drug prescription benefits.
Bills of Interest:
TSCL supports a number of bills in both the House and Senate that amend title XVIII of the Social Security Act to provide coverage of outpatient drugs under Medicare. The major bills in the Senate include S. 10 - Medicare Prescription Drug Coverage Act of 2001, introduced by Senator Tom Daschle (D-SD) and S. 358 - Medicare Prescription Drug and Modernization Act of 2001, introduced by Senators John Breaux (D-LA) and Bill Frist (R-TN). The major bills in the House include H.R. 339 - Medicare Outpatient Prescription Drug Coverage Act of 2001, introduced by Rep. Eliot Engel (D-NY); H.R. 803 - Medicare Modernization and Solvency Act of 2001, introduced by Senator Pete Stark (D-CA); H.R. 828 - Senior's Health Care Choice Act of 2001, introduced by Rep. Felix Grucci (R-NY); and H.R. 1512 - Medicare Extension of Drugs to Seniors (MEDS) Act of 2001, introduced by Rep. Bernard Sanders (I-VT).
TSCL Position: TSCL continues to support any efforts by Congress to improve and strengthen the Medicare program for the future as long as such efforts do not negatively impact on current beneficiaries. One of the primary things we support is a true modernization which of necessity will include "lockbox" protection of Medicare funds to prevent any future raids by Congress on these funds. TSCL will also continue to seek ways to improve and increase health care coverage under Medicare such as easing the requirements for beneficiaries to qualify for timely hospice care under the Medicare program. TSCL also supports legislative efforts to prevent sudden disruption of Medicare beneficiary enrollment in Medicare Plus Choice Supplement Plans.
Bills of Interest: TSCL supports H.R. 148, introduced by Rep. Bill Pascrell, Jr., (D-NJ), which prevents sudden disruption of Medicare beneficiary enrollment in Medicare Plus Choice plans.
Social Security Improvements:
TSCL Position: One of TSCL's first priorities for reform of Social Security is compensation for over 9 million surviving Notch babies born during the ten-year period of 1917 through 1926. In 1977 Social Security was close to bankruptcy, and was expected to run out of money by 1981. Congress enacted legislation to change the way benefits were calculated, beginning with retirees who were born in 1917 and became eligible for benefits in 1979. The changes were major, and the transition between the old and new method of calculating benefits not only took place over a very short period of time, they did not work as anticipated. Those born during the Notch years received substantially lower benefits than those paid to retirees born before and after them. When represented on a chart, the disparity in benefits forms a deep "V" notch. Benefits plunged from a peak for retirees born in 1916 and hit the lowest part of the "V" for those who were born in the years 1920-21. Benefits began to rise for those born in 1922 until they became more in line with other retirees, starting with those born in 1927.
Although TSCL believes that Congress did the right thing in 1977 to save the Social Security system from bankruptcy, the Notch babies paid the price in lower benefits. TSCL believes that it is now time to compensate the "Notch Survivors" for the sacrifices they made over the past twenty years. No matter what explanations are given that the "Notch babies" are receiving the proper benefits, the fact is that people born before and after the Notch years are receiving substantially higher Social Security payments. TSCL believes that it is consummately unfair to penalize those people who sacrificed and suffered through WWII and were responsible for our ultimate victory. It's past time to pay these people what is their due and what is fair. TSCL has devoted a significant amount of its time and resources to finding legislative solutions to correct this inequity. Although TSCL would prefer to restore full Social Security benefits to "Notch babies", TSCL recognizes that "lump-sum" notch proposals that would provide a one time payment of $5,000, would cost significantly less than the traditional notch bills ($10 billion a year for four years vs. $300 billion). In a survey of TSCL members 85% indicated they would accept the $5,000 settlement proposal and that it would be a positive move to greatly improve their quality-of-life.
Bills of Interest: H.R. 97, introduced by Rep. Ralph Hall (4-TX) and H.R. 853, by Rep. Robert Wexler (D-FL) are the TSCL preferred bills since they support the payment of a $5,000 settlement. TSCL also supports H.R. 80 and H.R. 82, both introduced by Rep. Jo Ann Emerson (8-MO), and H.R. 870, introduced by Rep. Bob Clements (D-TN).
TSCL Position: TSCL emphatically believes that the current method of calculating annual COLAs using the Consumer Price Index - Wage Earners (CPI-W) method does not accurately take the buying habits of older Americans into account. Put simply, older Americans do not have the same needs and buying patterns as younger workers. For example, seniors have no choice but to spend a significant percentage of their income on prescription drugs - an item which has risen rapidly in cost and will continue to rise. The Bureau of Labor and Statistics (BLS) market basket includes goods ranging from different kinds of meat to different kinds of electronic goods. The theory is that if the price of one good rises, a consumer will substitute a lower-priced good for the first item (ex. beef vs. chicken). When the cost of goods in the market basket falls, the CPI is adjusted downward. This results in lower COLAs.
Senior Citizens are affected differently than other consumers by the change in the cost of goods. In the case of electronics, whose prices are falling sharply with technological advances, seniors are affected negatively in two ways. First, seniors often do not use laptops, cell phones to the extent that younger people do, so their buying habits are not accurately reflected by the CPI. Thus, when the prices of these items fall, bringing a change in the CPI, lower COLAs result. However, seniors do not benefit since they do not save money on the lower prices of these goods because they do not buy them as often. Second, seniors are different from other groups of consumers because if the price of an item goes up, they often forego that item, either because there is no replacement or because they cannot afford even the replacement item. (ex. prescription drugs - if cost of a drug goes up and no generic is available, there is no substitution because seniors often cannot afford the drug at the higher cost.)
Currently the BLS compiles an experimental CPI-E, which tracks the change in prices for goods used by seniors age 62 and older. Over the 17 years for which CPI-E data has been available, it was found that the prices of goods bought by the general public rose by 73.9% while it rose by 85.1% for seniors (a difference of over 11 percentage points). Medical costs are only weighted as 5.6% of the CPI, but the CPI-E has found that the medical costs of seniors rose 181% in the past 17 years. A study commissioned by TSCL found that, had the CPI-E been used over a 17-year period instead of the CPI-W, a retiree with average benefits would have received a total of approximately $5,600 more in benefits over that 17-year period.
TSCL strongly supports legislation that would create a more accurate Social Security COLA by using the CPI-E vice the current CPI-W to determine the annual increase.
Bills of Interest: TSCL will work with Rep. Bernie Sanders (I-VT) to reintroduce his bill - Consumer Price Index Act for Elderly Consumers Act - in 2001 that directs the Bureau of Labor and Statistics to make the CPI-E permanent as the basis for calculating Social Security COLAs.
TSCL Position: TSCL previously opposed a series of "technical corrections" to the CPI that ultimately which reduced annual Cost-of-Living Adjustments (COLAs) since 1995, sometimes to levels below the rate of inflation. We now realize that this readjustment on a more timely basis is necessary to reflect the actual costs of goods and services. As previously stated, TSCL believes the CPI-E index is the most accurate way to calculate Social Security COLAs. Therefore, TSCL remains opposed to any legislative effort to either delay the Social Security COLA or to further correct COLAs calculations based on calculations that have little reflection of the actual buying habits of seniors.
Bills of Interest: TSCL supports H.R. 832 - Social Security Guarantee Act of 2001, introduced by Rep. Walter Jones (R-NC). This bill guarantees the right of individuals to receive Social Security benefits in full with an accurate annual COLA.
TSCL Position: TSCL supports any effort to reform Social Security that will not affect today's Social Security beneficiaries. TSCL will continue to support legislation that will transition the Social Security System into a system that offers a greater rate of return for future eligible beneficiaries, as long as today's retirees continue to receive their full SS benefit. TSCL will continue to oppose any legislation that would reform Social Security by cutting current benefits. TSCL will continue to monitor the issue of Social Security privatization.
Bills of Interest: TSCL supports H.R.14, introduced by Rep. Rob Portman (R-OH), which establishes a Bipartisan Commission on Social Security Reform.
TSCL Position: TSCL will continue to support legislative efforts to create a tangible Social Security Trust Fund "Lock-Box" to permanently stop the government from spending Social Security money on other federal government expenses. TSCL also will continue to oppose any legislative efforts to balance the federal budget that continues to use annual Social Security surpluses in order to reach the balance target.
Bills of Interest: TSCL supports H.R. 2 - Social Security and Medicare Lock-Box Act of 2001, introduced by Rep. Wally Herger (R-CA), which establishes a procedure to safeguard the combined surpluses of the Social Security and Medicare hospital insurance trust funds. TSCL also supports H.R. 96 - Social Security Preservation Act of 2001, introduced by Rep. Ralph Hall (D-TX), which amends the Social Security Act to ensure the integrity of the Social Security trust fund by requiring the Managing Trustees to invest the annual surplus of the trust fund in interest-bearing obligations of the United States and certificates of deposits, and to protect the trust fund from the public debt limit.
TSCL Position: Under current law, up to 50 percent of Social Security benefits may be taxable for individuals with annual provisional incomes between $25,000 and $34, 000, and couples with annual provisional incomes between $32,000 and $44,000. Up to 85 percent of SS benefits are taxable for individuals with more than $34,000 in annual provisional income or couples with more than $44,000. These income levels are fixed and do not rise annually like personal exemptions or tax brackets. This means that as incomes and Social Security benefits gradually rise, increasing numbers of older Americans must pay the higher 85 percent tax on their benefits. TSCL also believes that an eventual total elimination of all taxes on Social Security income is warranted. The current practice of taxing Social Security income means that individuals are being taxed on monies that have already been taxed which is double taxation. If Congress wants to cut taxes for the American public they should start with those people who have paid taxes the longest and are now receiving Social Security. It's only fair!
TSCL was very encouraged in 2000 when the House of Representatives passed H.R. 4865, The Social Security Tax Relief Act, that would have repealed the 1993 Social Security 85 percent tax rate increase and returned it to the former 50 percent rate. Unfortunately, this bill did not make it through the Senate. TSCL will continue to actively work with Congress to reintroduce and enact legislation in 2001 to repeal the 85 percent tax rate increase.
Bills of Interest: TSCL is currently supporting two bills, H.R. 122, introduced by Rep. Sam Johnson (3-TX); and H.R 192, introduced by Rep. Bob Stump (3-AZ), that would amend the Internal Revenue Code of 1986 to repeal the 1993 income tax increase on Social Security benefits. TSCL also supports two Senate bills - S. 181, introduced by Sen. Richard Shelby (R-AL) and S. 237, introduced by Sen. Tim Hutchinson (R-AR)
TSCL Position: Last year, TSCL submitted testimony to Congress in support of the repeal of the earning limit that previously required a dollar for dollar reduction of the Social Security benefits for individuals who worked after reaching age 65. Although the Social Security benefit offset was repealed for retirees age 65 thru 70, those who retired early (under age 65) are still penalized for working. Younger retirees can only earn up to $10,680 in 2001 without losing any SS retirement benefits. Exceeding this amount requires a $1 reduction for every $2 of earning over the limit.
TSCL continues to believe that those choosing to receive a reduced benefit at age 62 should be afforded the opportunity to supplement their SS benefit by also being allowed to work without any offset.
Bills of Interest: None
TSCL Position: Individuals who have worked at jobs covered both by a federal or state government pension, and by Social Security should be entitled to benefits from each. However, under the Windfall law, Social Security benefits of a retired federal or state government employees can be reduced by as much as $260 a month (based on someone applying for benefits in 2000 at age 62). Under the Offset law, individuals with government pensions can be hit even harder when they try to collect a spousal or survivor benefit based on their souse's Social Security benefit. The Offset law can almost completely eliminate a spouse or survivor's Social Security benefit.
TSCL supports legislation that would amend or repeal the Windfall and Offset laws.
Bills of Interest: TSCL supports H.R. 664, introduced by Rep. William Jefferson (D-LA) and S. 611, introduced by Senator Barbara Mikulski (D-MD) which both guarantee a minimum $1200 combined monthly income from a government pension and Social Security benefits before the Offset could be applied. TSCL also supports H.R. 1073, introduced by Rep. Barney Frank which amends the Windfall formula, giving 93 percent of affected retirees more Social Security benefits, but prefers H.R. 848, introduced by Rep. Max Sandlin (D-TX) which just simply repeals the Windfall provision.
Other Key Priorities:
TSCL Position: TSCL remains very concerned over the lack of affordable long-term care for senior citizens. Many of those who need such care are forced to "spend down" their own assets before they can qualify for Medicaid. Although long-term care insurance does exist, these plans are only affordable for younger senior citizens. Older seniors who are now at the age when they will most likely need long term care never had the opportunity to purchase these plans, and cannot afford them now.
TSCL will continue to seek innovative ways to increase access to long-term care for senior citizens, whether through the existing Medicare program, or through other mechanisms.
Bills of Interest: None
Bills of Interest: None
Attachment B
Misleading Information Aimed at Seniors
Alexandria, VA (August 2000) The Senior Citizens League (TSCL) has recently received reports of a possibly fraudulent scheme aimed primarily aimed at African American seniors. We have discussed this with both the Social Security Administration and the United States Postal Inspection Service. Flyers in Chicago, Milwaukee, Baton Rouge and Jackson, Hattiesburg and Canton, Mississippi appeal to those born before 1928 and of the "Black Ethnic Race". It goes on to claim that if people send in their name, address, phone, date of birth, and Social Security number to the "TREA Senior 'Systems' League" that an application will be mailed to them leading to either the issuance of a $5000 lump sum check or larger Social Security checks.
"This is a misleading statement that appeals to the most vulnerable seniors who really need every penny to pay for prescribed drugs, pay rent and buy food" said Michael Zabko, TSCL's Executive Director. "To even imply the 'Slave Reparation Act' will give them $5000, is a senseless and irresponsible act. The only legislation in the 106th Congress regarding reparations is H.R. 40, which is a proposal to form a commission to study the merit of this issue. H.R. 40 was referred to the House Judiciary Committee on January 6, 1999 and then to the Sub-Committee on the Constitution on February 25, 1999 and remains there today."
The League is urging the Postal Authorities to find the persons responsible for this misinformation since the League's mailing address appears on the flyers. Mr. Zabko went on to say, "We urge anyone with information on this to contact us at 1-800-333-8725 or contact the Postal Inspection Service through your local post office. We will vigorously attempt to stop this misinformation and demand an immediate end to the use of our name in conjunction with this.
TSCL is working for Notch Reform, an unrelated topic. One proposal is for a $5000 lump sum or Social Security payment increase to compensate certain individuals for lower Social Security benefits. TSCL does not ask for Social Security numbers. In fact we caution our members that giving out Social Security numbers is very risky due to the growing threat of 'Identity Theft'."
TSCL is a national group of politically active seniors concerned about the protection of their earned Social Security, Medicare, military and other retirement benefits. TSCL members participate in a number of grass roots lobbying and public education campaigns to ensure governmental bodies live up to commitments. For more information about TSCL, send a self-addressed business-size envelope to: TSCL INFO, 909 N. Washington St., Suite 300, Alexandria, VA 22314.
Seniors Warned Not to give out their Social Security Numbers!
Alexandria, VA (August 2000) "Seniors should never give out their Social Security numbers just because they are asked for them," warns Michael Zabko, Executive Director of TREA Senior Citizens League (TSCL). "We've recently received reports of flyers being circulated indicating that people born from 1917 through 1926 must register their social security numbers with TSCL to collect benefits of pending legislation. This is 100% false -- there is NO REASON to give out your Social Security number."
"It IS TRUE that TSCL is working for passage of Notch Reform. But we do not need your Social Security number for this. Giving out your Social Security number is risky because criminals can use Social Security numbers to obtain bank accounts, false drivers licenses, and more. 'Identity theft' is a growing crime in America and seniors are often the victims."
"It is probable these misleading flyers are being circulated by well-meaning people, says Zabko. The Social Security Notch issue has growing support in the 106th Congress and there are now almost 200 Members of Congress who have cosponsored the legislation." Perhaps this growing interest has sparked grassroots efforts for passage that mistakenly request Social Security numbers."
"We've received a number of reports of flyers being circulated urging citizens to send their social security number to us for registration. Others indicate that we are providing a settlement for the Slave Reparation Act. Possibly some good intentioned person has taken a lot of information and pieced it together to garner support to pass this legislation. Unfortunately they have misstated some important information. Indeed, TSCL has been active in educating older Americans regarding the improper use of social security numbers," continues Zabko.
TSCL is a national group of politically active seniors concerned about the protection of their earned Social Security, Medicare, military, and other retirement benefits. TSCL members participate in a number of grassroots lobbying and public education campaigns to ensure governmental bodies live up to commitments. For more information on TSCL send a self-addressed business-sized envelope: TREA Senior Citizens League, Dept. BP100, 909 N. Washington St., Suite 300, Alexandria, VA 22314.
Media Alert
African American Seniors targeted with Hoax
Alexandria, Virginia, September 21, 2000--TREA Senior Citizens League (TSCL) is urging all media professionals to help end a hoax that is currently victimizing African American senior citizens.
"We are asking the media to put out information informing senior citizens, particularly those of African American descent, that the "Slave Reparation Act" is a hoax," said Michael Zabko, TSCL Executive Director. "And, we'd like all media representatives to join us in reminding senior citizens that at no time should they provide their social security number or other vital information to any cause without first checking it out to see if it is valid."
Currently, fliers are being circulated across the south that claim the "Slave Reparation Act" will provide a financial settlement to those who apply for it. It targets those born before 1928 and of the "Black Ethnic Race." However, The Slave Reparation Act does not exist. To date, fliers have been located in Baton Rouge, La.; Canton, Hattiesburg and Jackson, Miss.; and in Chicago and Milwaukee, Zabko noted.
The flyer further states that individuals can obtain more information on this 'Act' by writing to the TSCL post office box in Washington. "This is completely untrue," says Zabko. "There is no 'Act' and TSCL's name is being unjustly slaughtered by this hoax."
"We've received over 10,000 inquiries from victims to date. As far as we can tell, we are the only financial victims of this hoax since the flyer doesn't ask people to send money to anyone, and we're grateful for that." says Zabko. "But it is costing our organization thousands of dollars to respond to all the questions we are receiving by phone and mail."
To ensure that all inquiries are handled quickly and accurately, TSCL has established an immediate response system. "We tell all those who call that the letter is a hoax and that the letter is in no way authorized or approved by TSCL. For those who write in, we have a form letter that we send out immediately that states the same thing, and then goes further to advise individuals to not give out their social security number without first checking if there is a legitimate use for it. We're trying to stop this beast from growing, but we need help."
In an August 29 letter to the chief postal inspector, TSCL urged the Postal Inspection Service to "initiate a nationwide investigation of the unauthorized use of the name and address of TREA Senior Citizens League by the publishers and distributors of false and misleading printed matter directed toward senior citizens." A similar letter has been sent to the Social Security Administration. And, TSCL has alerted the Better Business Bureau, the NAACP and Attorney Generals in most southern states.
Unfortunately, this has not stopped the flyers from circulating.
"We need media outlets to help inform the African American community that this is a hoax so we can stop this thing in its tracks." says Zabko. "Our membership includes many African Americans and we are gravely concerned that they are being targeted."
"This hoax is like a computer virus," Zabko added. "A person receives the misleading flyer and then may innocently pass it along. But it's a cruel hoax that appeals to the most vulnerable seniors who really need every penny to pay for food, rent and medication. We all need to pitch in and see that our senior citizens are not taken advantage of by this hoax."
At this time, the only legislation in the 106th Congress regarding reparations is H.R. 40, which is a proposal to form a commission to study the merit of this issue. H.R. 40 was referred to the House Judiciary Committee on January 6, 1999 and then to the Sub-Committee on the Constitution on February 25, 1999, where it remains today.
"We urge anyone with information on this misleading information to contact us at 1 800 333 8725 or contact the Postal Inspection Service through their local post office," Zabko stated. "TSCL is working diligently to put an immediate end to this hoax and the misrepresentation of our organization's name and address."
TSCL is a national group of politically active seniors concerned about the protection of their earned Social Security, Medicare, military and other retirement benefits. TSCL members participate in a number of grass roots lobbying and public education campaigns to ensure governmental bodies live
up to commitments.
TSCL has created a special, temporary media website for members of the working press who want more information on the hoax. Please do not publish the URL for this site since it is not designed for high levels of public traffic. Visit it at tsclconsumeralert.org
Usual contact information and format
TSCL, 909N. Washington St., Suite 300, Alexandria, VA 22314.
Seniors Group Victimized by Misinformation
Statement by Michael J. Zabko
Executive Director
TREA Senior Citizens League
Defending the Earned Benefits of more than 1.5 Million Americans
In response to false information being erroneously
circulated
under the guise of a TSCL campaign
Alexandria, Virginia - 9/21/00 -
Since as early as January of 2000, the TREA Senior Citizens League (TSCL)--a prominent seniors grass-roots advocacy organization--has been a victim of misleading information that is causing distress among American senior citizens. Because our good name has been linked to several flyers that are full of incorrect and possibly inflammatory information we have been appealing for assistance from the Social Security Administration and other Government agencies in order to help track and eliminate these flyers.
The original materials we were made aware of asked for personal information including Social Security numbers, something we do not want and have no need for, in order to sign up for notification of a settlement of the Social Security Notch issue. The latest wrinkle in this proliferation of misinformation has been a new flyer that says if elderly black Americans send in their personal contact information, once again including Social Security numbers, to a League post office box, we will ensure they receive a $5,000 payment due to "slave reparations."
We have received some support from the Better Business Bureau in Washington D.C. in getting the correct information out to the public. They have noted on their website that the problem exists and that we are working with them to try and eliminate it (http://www.dc.bbb.org/report.html?recordid=18400).
We assume that many people have been calling Social Security offices due to an Associated Press article on September 19th that we know appeared in USA TODAY and the Washington Post. The article noted that individuals should call their local SSA offices if they received one of the flyers. Even though we have informed the Social Security Headquarters office in Baltimore, Md., of new developments, we are concerned that the information we have passed on to them has not been forwarded to their district and local offices. Yet, it is at the local level that this false information is causing the most damage.
The League is as much a victim of this hoax as the individuals who receive the erroneous flyers. Whoever initiated the flyers used our legitimate P.O. box number and contact information and our office has been besieged with calls and letters. Additionally, some newspapers and other organizations continue to spread the misinformation and by implication have made it appear that the League is responsible for spreading these misleading flyers.
We are asking that if anyone has questions to please contact us at 1-800-333-8725. If you need instant information please go to a special website we set up to answer questions about this problem located at www.tsclconsumeralert.org. The site includes true information about the League, the actions we have taken to stop this false information from spreading, and what we do daily to help seniors.
The Senior Citizens League is a seniors' advocacy organization being forced to use our resources in a manner unacceptable to our membership. The tremendous amount of time, effort and funds we are using to make sure the correct information is received by those most affected, could be better utilized in our primary purpose which is the betterment of the quality of life of older Americans. If anyone has information on who is distributing these misleading flyers, please contact us so we can hopefully put an end to this problem in the very near future!
The Senior Citizens League is a national group of politically active seniors concerned about the protection of their earned Social Security, Medicare, military and other retirement benefits. It is affiliated with The Retired Enlisted Association, established in 1963. League members participate in a number of grassroots lobbying and public education campaigns to ensure governmental bodies, including the Social Security and Health Care Financing Administrations, live up to their commitments. For more information please contact TREA Senior Citizens League, Dept. SF946.
NEWS
TREA Senior Citizens League
909 N. Washington St.,
Suite 300, Alexandria, VA 22314
Contact: Michael J. Zabko, Executive Director
(800) 333 8725
TSCL Supports Actions to Investigate Hoax Aimed at Seniors Citizens
Alexandria, Virginia, October 3, 2000--"We're starting to see some positive steps being taken that we hope will put an end to the circulation of misinformation about a supposed "Slave Reparation Act," said Michael J. Zabko, executive director of TREA Senior Citizens League.
"There is no 'Slave Reparation Act,'" Zabko said, "and the issue is not--and has never been--on TSCL's legislative agenda. We're receiving thousands of calls and letters from senior citizens who are hopeful that they can get some much-needed money to help pay for their medicine, food and rent. It's not true. That makes it more than just a hoax--it's cruel." The fliers in question purport that those born before 1928 and of the "Black Ethnic Race" are eligible for a lump sum payment from the government.
TSCL met with representatives from the Postal Inspection Service and the Social Security Administration, among others, last week to discuss possible steps to investigate the hoax that is targeting senior citizens. "A major concern to us is that many of the fliers being circulated ask for personal information, such as social security numbers," Zabko noted. "Under no circumstance, should anyone give out their social security number without first verifying that there is a legitimate use for it, like getting a loan."
"We're all concerned about protecting the privacy and security of our senior citizens. So any steps taken now to safeguard information will be helpful in the long run," Zabko said.
According to Michael Ouellette, TSCL director of legislative affairs, there are many people who have begun to recognize the impact that this hoax might have if it is not taken seriously. "We want to thank Arkansas Attorney General Mark Pryor, Congressman Bobby Rush (D-IL), Chicago Ward 3 Alderman Dorothy Tilman and Cook County State's Attorney Richard A. Devine who all contacted our office once they were alerted to these fliers. Each of these individuals, in turn, contacted various government agencies such as the Social Security Administration, Postal authorities, and/or the Secret Service. Their repeated inquiries helped bring several representatives together to discuss ways to investigate, and eventually stop, the spread of misinformation."
As early as January, TSCL was alerted that various fliers were being circulated to senior citizens that contained a request for personal information, including social security numbers. The fliers note that individuals can obtain more information by writing to the TSCL post office box in Washington, D.C. These materials are not authorized or approved by TSCL. TSCL took immediate action. In addition to contacting authorities about this hoax, TSCL initiated an immediate response system to respond to incoming queries and help clarify the misinformation.
TSCL is a national group of politically active seniors concerned about the protection of their earned Social Security, Medicare, military and other retirement benefits. TSCL members participate in a number of grass roots lobbying and public education campaigns to ensure governmental bodies live up to commitments.
TSCL has created an emergency web button on its website that contains information about the hoax. Visit TSCL at www.tscl.org for more information.
NEWS
TREA Senior Citizens League
909 N. Washington St.,
Suite 300, Alexandria, VA 22314
Contact: Michael J. Zabko, Executive Director
(800) 333 8725
TSCL working with Government Agencies to Stop Hoax
Alexandria, Virginia, October 2, 2000--TREA Senior Citizens League (TSCL) is encouraged by the actions being initiated by government agencies to safeguard senior citizens and stop the hoax circulating about a "Slave Reparation Act."
"We met with representatives from the Postal Inspection Service and the Social Security Administration on Tuesday [September 26] and feel confident that these agencies are taking appropriate steps to investigate the hoax," said Michael J. Zabko, executive director of TSCL. "TSCL agrees to cooperate fully with any investigations underway by the Social Security and postal agencies and has been able to turn over samples of the erroneous fliers and other information that may assist them in their efforts. Our goal is to safeguard the private information and benefits of our senior citizens and to clear TSCL's name, which has been unjustly linked to this hoax."
Fliers are being circulated across the south that claim the "Slave Reparation Act" will provide a financial settlement to those who apply for it. They target those born before 1928 and of the "Black Ethnic Race." Additionally, the fliers ask for personal information, such as social security numbers. The fliers note that individuals can obtain more information on this 'Act' by writing to the TSCL post office box in Washington, D.C.
"There is no 'Slave Reparation Act,'" Zabko noted, "and this issue is not--and never has been--a part of TSCL's legislative agenda. These fliers are nothing more than a nuisance chain letter that is playing on the hopes of our senior citizens. We want to stop them from being circulated. Or, at the very least, we'd like to inform the public of this hoax so that it is no longer taken seriously."
Since the onset of this hoax, TSCL has taken steps to ensure that all inquiries are handled quickly and accurately. "We established a rapid response system that includes a recorded message on our office voice mail system, a form letter to send to those who respond to the fliers, and a hot button on our website where the public can get more information," Zabko said. "All these let the public know that the fliers are a hoax and that the materials are not authorized or approved by TSCL."
TSCL is a national group of politically active seniors concerned about the protection of their earned Social Security, Medicare, military and other retirement benefits. TSCL members participate in a number of grass roots lobbying and public education campaigns to ensure governmental bodies live up to commitments.
TSCL has created an emergency web button on its website that contains information about the hoax. Visit TSCL at www.tscl.org for more information.
Attachment C
July 23, 2001
Honorable E. Clay Shaw, Jr.
Chairman
Subcommittee on Social Security
Committee on Ways and Means
U.S. House of Representatives
Rayburn Building, Room B316
Washington, D.C. 20515
Dear Mr. Chairman:
I am Chairman of the Board of Trustees of the TREA Senior Citizens League ("TSCL"), a nonprofit, tax-exempt educational organization, which supports, and advocates for, the rights of senior citizens.
I am in receipt of a copy of your letter to me dated July 19, 2001, informing me of the hearing before your subcommittee on Thursday, July 26, 2001, and enclosing a subpoena to testify.
I wanted to let you know, since I was not in the D.C. metropolitan area this week and was not able to receive your letter and its attachment personally, that I will be traveling to Washington to attend, and will look forward to seeing that you and your Subcommittee are accurately informed regarding TSCL and our activities.
It would appear that you and your Subcommittee thus far may have received inaccurate information regarding the subject of the hearing, and if so I wanted to be sure that you had the correct facts even before the hearing begins.
There are two specific concerns in that regard that surfaced upon reading your letter of July 19. First, your letter states that the Social Security Administration's Inspector General (SSA's IG) had completed investigations about "two types of misleading mailings," that the focus of the hearing will be on "several different mailings, including slave reparation and notch..." and that you sent me a subpoena so that I "may respond to questions ... regarding TSCL's actions relative to these mailings." As the SSA's IG's report of July 6, 2001 reveals, the IG investigated two types of flyers. Those flyers, which have been referred to as "hoax flyers," were not mailed to the best of our knowledge, and the SSA IG's report does not mention that any were mailed. The point is to not confuse the distribution of the hoax flyers with any mailings TSCL was forced to send out to those who were misled by the fliers.
The second point is the statement in your letter that, according to the SSA IG's report, "TSCL responded to the mail generated by these flyers by directing its data processing firm to create a database containing the respondent's personal information." In fact, as the SSA IG knows, TSCL only recorded the respondent's name and address, which was necessary so that it could write to the respondent to tell the respondent that he or she had been misinformed, and that TSCL absolutely did not record other personal information that may have been sent out, such as the respondent's Social Security Number. Any intimation that TSCL Entered Social Security Numbers into a database or otherwise recorded those numbers in any way is categorically false. TSCL never seeks or gathers Social Security Numbers, and in fact advises seniors to be wary about giving out their Social Security Numbers. More information on that subject is available on TSCL's web site, at www.tsclconsumeralert.org.
Your letter, quoted statements contained in the SSA IG's recent report, that "TSCL ... wrote to each victim disavowing any responsibility for the flyers, but included TSCL's standard fundraising brochure." That statement, while somewhat accurate, is incomplete and misleading. TSCL endeavored to correctly inform respondents who clearly had been misinformed by the hoax flyers. It sent respondents a letter correctly informing them that the flyers they had received were inaccurate, and it informed respondents, honorably we would submit, and for the benefit of the respondents, who TSCL really is. The brochure that was sent was not a fundraising vehicle and no reply envelope was provided, as the SSA IG knows well.
Unfortunately, the statements in your letter, which are also contained in the Advisory that your Subcommittee has released, and which is set forth on your Subcommittee's web site, creates a false impression of TSCL's activities. After reading and rereading the SSA IG's report of July 6, 2001, I replied to the Acting Commissioner of Social Security, attempting to point out the several instances of pejorative inferences and/or misleading information in the SSA IG's report directed against TSCL. A copy of my letter to the Acting Commissioner is attached hereto.
I appreciate the opportunity to appear before your Subcommittee on July 26. With best regards.
Sincerely yours,
George Smith
Chairman
Enclosure
Attachment D
July 18, 2001
Honorable Larry Massanari
Acting Commissioner of Social Security
Social Security Administration
6401 Security Boulevard
Altmeyer Building, Room 900
Baltimore, MD 21235
Re: Response to the July 6, 2001 Report of the
Inspector General, Social Security
Administration
Dear Acting Commissioner Massanari:
I am Chairman of the Board of Trustees of the TREA Senior Citizens League ("TSCL"), a nonprofit, tax-exempt education, which supports, and advocates for, the rights of senior citizens.
On July 6, 2001, the Inspector General of the Social Security Administration issued a report to you entitled "Misleading Solicitations Target Senior Citizens" (hereinafter "the report" or "the OIG report"). TSCL was featured prominently in that report -- which was disseminated to the public through the press and the SSA website -- and I am writing to point out certain statements or implications in the report concerning TSCL that we believe are inaccurate, unfair, misleading and inappropriate.
It is our hope that you will correct immediately such unfair statements, in a press release or other follow-up statement, with respect to certain critical facts that either were not contained in the OIG report or were stated in such a way that a false impression regarding TSCL may exist in the mind of the public. Statements about this matter on your agency's web site repeat many of the same prejudicial statements concerning TSCL confirmed in the OIG report. Because of the way it is arranged, the web site material may be even more unfair than the OIG report, and probably, by virtue of its potentially extensive reach, is even more damaging than is the OIG report, although both items present the appearance of attempts to seriously harm TSCL.
We are saddened that the OIG report disparages citizens and the organizations advocating their causes contrary to the viewpoint of SSA, in the guise of an investigative report. Whether it is appropriate for a government agency to issue a document, using appropriated funds -- in possible violation of Federal law -- to disparage one side in a public policy and lobbying dispute, is a serious issue.
Misstatements or Harmful Implications Regarding TSCL
The OIG report summarized the OIG's investigation into "hoax flyers" that have been distributed nationwide by persons unknown, providing false information about Social Security and falsely using the name of our organization -- TSCL -- as a contact. I want to say at the outset that TSCL at all times has supported the Social Security Administration's investigation into the still unknown origin of the hoax flyers. One reading the OIG report, newspaper accounts of that report, or the press release announcing that report would not necessarily come to that conclusion. In fact, the report is written in such a way that it appears TSCL may have tried to impede a proper investigation, when nothing could be further from the truth. This subject is discussed in more detail below.
Approximately one-half of the OIG report is given to a discussion of the OIG's investigation of the hoax flyers, and it concludes, in the section labeled "Outcome," with the statement that "although the investigation did not identify the source of the hoax flyers, it did highlight the vulnerability of senior citizens to exploitation...." This followed a two and one-half page discussion in which the only non-governmental organizations named were TSCL and its affiliate, and in which it was reported how much direct public support funding TSCL had obtained in the period 1997-1999. To prepare a report for public consumption in this manner, we would submit, is profoundly unfair to TSCL.
That the report was meant to attack TSCL is clear throughout. For example, in the very second sentence of the section entitled "The Investigation," TSCL is described as "a tax-exempt 501(c)(4) organization that purports to advocate for legislative reforms favorable to senior citizens" (emphasis added). The use of the pejorative term "purports" is inappropriate. The OIG is very well aware of TSCL's legislative efforts and successes, including legislation now pending in Congress, in both the House of Representatives and the Senate (e.g., H.R. 97, H.R. 853. S. 835), that has the sponsorship of dozens of Members of Congress and widespread Congressional support. Any implication that TSCL is not advocating on behalf of the interests of senior citizens is an outright falsehood. And this is but one of many examples of unnecessary and unfair attacks against TSCL in the OIG report. It is apparent that the OIG used the "hoax flyer" investigation primarily to prepare a public report critical of TSCL and the positions for which it advocates, since these political positions are opposed by the Social Security Administration ("SSA").
Furthermore, although that same section of the report had stated that "the OIG was unable to identify the origin of the hoax flyers..., " it follows by saying:
[t]he investigation did determine, however, that (1) the return address listed on the hoax flyers was TSCL's address....and (6) TSCL's marketing and data processing firms resisted compliance with the OIG's subpoenas.
The construction of that paragraph of the report, including the specific facts related therein, was misleading and most unfair to TSCL. All of the facts related in the numbered statements (1) through (5) were furnished to the SSA by TSCL voluntarily, many, many months ago. It has been known for well over a year, after the hoax flyers first surfaced, that someone had prepared these false or misleading flyers using TSCL as the contact organization, and including TSCL's mail address. To announce these as "findings" or "determinations,"as it did, was an effort by the OIG to imply that the OIG had reached certain "conclusions" based upon its discovery of information, and that this "discovered information" implicated TSCL. In fact, most of the OIG's "determinations" were simply undisputed facts. All of this information was well known many months ago; TSCL had reported it to the SSA, and had communicated it to the public by putting it on the TSCL website, www.tscl.org. Nevertheless, the implication, when such information is revealed the way the OIG revealed it, is that all of the relevant information discovered in the investigation still pointed to TSCL somehow. In fact, this information was known when the investigation first began, and the whole point of the investigation -- which TSCL urged the OIG to conduct -- was to determine the origin of the hoax flyers. Thus, although the report stated that the OIG was unable to identify the origin of the hoax flyers, the report was deceptive in not telling you or the public that TSCL urged the OIG to investigate the matter of the hoax flyers, and that TSCL voluntarily disclosed information to the OIG in an effort to determine the origin of the hoax flyers.
To simply report such "determinations," without any accompanying discussion of how the OIG came into possession of the underlying facts, or without explaining why such "determinations" may be significant in the least, was misleading. Most of these so-called determinations should have been mentioned, if at all, in the section labeled "The Investigation," not the section labeled "Outcome." And certain matters should have been mentioned, if at all, only with a full explanation. Statement (2), which actually says that the hoax flyers "were very similar to the notch reform flyers that TSCL acknowledges distributing in its normal course of business," is a case in point. What does the OIG mean by that statement? That the hoax flyers were similar in format to TSCL's materials, or that TSCL's own materials are false? This latter disparaging, and libelous, implication seems to have been produced intentionally in the OIG report.
The misleading nature of the OIG report is underscored by statement (6) in the same paragraph ("Outcome") on page 2, indicating that "TSCL's marketing and data processing firms resisted compliance with the OIG's subpoenas." Why was such a statement even included, particularly in the section of the report labeled "Outcome"? And if it was relevant at all, why were not other, even more relevant facts included as well? Other relevant facts would be, for example: (1) that the OIG's office issued very broad subpoenas to TSCL itself and its mail processing agent in the fall of 2000, and TSCL and its agent, while objecting to the breadth and unnecessarily intrusive reach of those subpoenas, reached an agreement with the agent and voluntarily complied with the subpoenas; (2) that, although the information provided by TSCL should have been sufficient for the OIG investigation, the OIG could have contacted TSCL for further information (including information in the hands of its agents) if it felt such further information was necessary, but instead the OIG, without contacting TSCL, simply issued very broad-reaching subpoenas to TSCL's agents; (3) that the subpoenas that were resisted by TSCL's marketing and data processing firms were resisted only in part, again for reasons related to the unnecessarily broad reach of the subpoenas and on very solid First Amendment grounds, and that the OIG modified its subpoena demands; and (4) that the subpoena matters ultimately were settled, without litigation. By even mentioning "resistance" to the subpoenas, as it did, the OIG report tried to communicate that TSCL, through its agents, had something to hide, when the OIG knows very well that TSCL and its agents disclosed all relevant information.
A critique such as this runs the risk of being laborious, but the OIG report is so infected by innuendo and misleading implications that it is difficult to summarize succinctly all of the ways in which the report was unfairly fashioned. Suffice it to say that, if the intention of the OIG report was to disparage TSCL, the report was successful. TSCL has been working very hard in the past days to try to correct any false impression generated by the misleading statements in the report and follow-up reports by the media. We believe that this state of affairs was intended by the OIG. We also believe that, instead of truly attempting to determine the origin of the hoax flyers, (1) the OIG simply used its "investigative report" as a platform to create resentment against persons and organizations that are critical of the SSA, and that believe in, and fight for, issues that are contrary to SSA's positions.
Although the potential damage to TSCL from the OIG report is incalculable, we believe that the situation could be ameliorated by a statement issued from your office, detailing the extreme cooperation that TSCL exhibited throughout the OIG's investigation, confirming that TSCL was a victim of the hoax flyers, and assuring the public that, although the SSA does not necessarily endorse the views advocated by TSCL or espoused by its members, it recognizes the right to have and express those views under the United States Constitution.
The OIG Report's Suggestion of Remedial Measures
Although the OIG report states that one of its purposes is "to suggest remedial measures to help reduce the risk of similar scams in the future" (OIG report, p. 1), the report really offers no such suggestions at all. Instead, it goes on for more than two full pages, arguing against the legislative positions advocated by TSCL and others in support of "notch" reform, and concluding that "the federal government should do whatever is necessary to provide Social Security beneficiaries with balanced and non-inflammatory information on the notch issue." (OIG report, p. 5.) This general suggestion was merely part of the concluding statement in a diatribe by the OIG against TSCL -- an organization that has been known to criticize the SSA -- in a situation where the OIG not only did not disclose such friction, but used the context of an investigative report to cloak its attack.
This kind of legislative advocacy by the Social Security Administration, in the framework of a so-called investigative report, has been used to disparage TSCL and its members for their sincerely-held views, and to intimate, without any support in the law, that their actions are somehow impermissible. It illustrates, and in fact constitutes, viewpoint discrimination, and is doubly wrong because of the deceptive context in which it was made. As mentioned above, it may violate federal law prohibiting lobbying with appropriated funds.
TSCL advocates notch reform, as do other organizations, and as it is entitled to do under the First Amendment. Bills submitted in Congress throughout the past two decades, sponsored by scores of congressmen and senators, would enact such reform. And as mentioned above, there are bills pending currently in both the House and the Senate that would provide relief to those affected by the notch issue, with substantial Congressional support. H.R. 97, for example, introduced by Rep. Ralph Hall (D-TX), has 80 cosponsors, and H.R. 853, introduced by Rep. Robert Wexler (D-FL), has 21 cosponsors. The OIG report, while admitting that congressional support for notch reform truly exists, somehow discounts the significance of that fact by stating that no notch reform legislation has yet been enacted. If legislation had been enacted, there would no longer be a need to seek legislative redress of this unfair treatment of certain seniors. On the one hand, the report rails against fundraising in support of the notch issue, all the while admitting, on the other, that "reasonable people may disagree on the merits of the notch reform issue." (OIG report, p. 4.)
The report is blatantly, and inappropriately, negative in its treatment of TSCL throughout. It even attempts to disparage TSCL in connection with some of its communications with its members, stating (without giving TSCL notice or a chance to respond) that TSCL had not honored certain commitments made in certain fundraising solicitations. (OIG report, p. 4.) Even if this were true, and TSCL had fallen down on one of its promises, the OIG's use of its "investigative knowledge" in this way is a tactic to be deplored. Quite simply, the OIG has used its investigation of the hoax flyers to put together a "hit piece" against TSCL, with rhetoric that can only be described as strident and inappropriate.
TSCL stands by its position on notch reform, and intends to continue to advocate for the rights of senior citizens. We could easily respond to the anti-notch reform statements made in the OIG report, but believe you already know our position on this matter. For further information, please visit our web site at www.tscl.org.
In addition to the press release or follow-up statement requested above (page 1), we request a copy of the "fact sheet" alluded to in the final paragraph of the OIG report. If the fact sheet is similar or identical to the fact sheet that is found on your agency's current web site, we request that the fact sheet also be edited to remove the misstatements and adverse inferences concerning TSCL. The materials on that web site concerning TSCL are extremely prejudicial to TSCL in the same way that the OIG report (which is the basis for the web site material) is damaging to TSCL. Please correct these materials so that they reflect the truth, instead of attempting to disparage a nonprofit organization with which SSA disagrees about public policy issues.
We appreciate your consideration of the matters set forth above, and look forward to your response.
Sincerely yours,
George Smith
Chairman
cc: Hon. James G. Huse, Jr.
Inspector General
Social Security Administration
6401 Security Boulevard
Altmeyer Building, Room 300
Baltimore, MD 21235-6401
1. Aside from discussing its investigation of TSCL, which comprised a significant portion of its report, the OIG merely announced ("Outcome," p. 2): "[d]espite a thorough investigation by the OIG...the OIG was unable to identify the origin of the hoax flyers. The informal distribution channels employed, which included hand posting on cars and bulletin boards, made source identification nearly impossible." Nowhere was there mention of contacting any of the 29,000 persons who wrote to TSCL. Nowhere was there any discussion of the various locales involved, and the percentages of respondents in each locale. One wonders just how thorough this investigation actually was.