The Real Truth About AARP

Lately, allegations have been made against AARP that are inaccurate. By accessing the highlighted topic in the List of Topics below you will know the real truth about AARP.

List of Topics


FEDERAL GRANTS

BACK TAXES

PERSONAL FORTUNE THROUGH SALE OF INSURANCE

BALANCED BUDGET AMENDMENT

DANGEROUS LOBBY

CONFLICT OF INTEREST

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FEDERAL GRANTS

Last year the AARP received federal grants totalling approximately $80 million to implement federal programs mandated by Congress to assist older persons. Some of these programs include TaxAide, Senior Environmental Community Service Employment Program and the Senior Community Service Employment Program. AARP is one of a number of nonprofit organizations that receive these contracts. The grant money benefits people and communities; it is not used for lobbying.
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BACK TAXES

In l978, an IRS audit of AARP and the National Retired Teachers Association concluded that neither group had taxable income. In the l980s, the IRS began a massive review of many tax-exempt organiztions, including AARP. In 1994, AARP did pay the IRS $l35 million in lieu of taxes for the years l985 through l993. It was not a fine and it wasn't for back taxes. AARP and the IRS agreed to disagree about whether the Associaiton received taxable income during the nine years in question. AARP's Board of Directors agreed to the settlement because it felt it was in the members best interest to put those years behind.
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PERSONAL FORTUNE THROUGH SALE OF INSURANCE

Members of the AARP's Board of Directors all serve in a volunteer capacity without compensation of any kind. In the early, pre-Medicare days of AARP, health insurance was virtually unavailable for retirees. An insurance company was found to offer policies to AARP members. After a series of legal battles, AARP succeeded in severing its relationship with the insurance company and the Association opened the insurance business to bids from other firms. Since the early l980s, health insurance has been provided by Prudential which provides high quality service at competitive rates.
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BALANCED BUDGET AMENDMENT

The AARP is the nation's leading supporter of a strong Social Security program, both now and for the future. We believe that the Soci8al Security Trust Funds should be treated separately and not used to cover up problems in the rest of the federal budget. The AARP supports deficit reduction and maintains that Congress and the President already have the power and the responsibility to balance the budget. Those who wanted to amend the Constitution failed to specify how the budget would be balanced-that is, whose benefits would be cut and whose taxes would be raised. The Association has always believed that a balanced budget amendment would have severe economic consequences for the nation's older population. Although we maintain that an amendment would result in cuts in programs serving older Americans-Social Security and Medicare in particular as well as a reduction on the government's ability to respond effectively to fluctuations in the economy. It would also impede efforts to handle national emergencies and limit investments in education, roadways and national parks etc. The AARP supports a program of spending restraint and increased revenue to achieve true deficit reduction over the long term.
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DANGEROUS LOBBY

All of AARP's endeavors are undertaken with a view toward promoting independence, dignity and purpose for older Americans. AARP's vision is to serve all generations through education, advocacy and community service. AARP is strictly a nonpartisan organization and does not have a political action committee nor do we contribute financially to any candidates for public office or speciric political parties. Virtually all of AARP's resources are dedicated to national and community-based programs, advocacy efforts at the state and national levels, Modern Maturity magazine and the Bulletin newspaper and our extensive education and information programs.
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CONFLICT OF INTEREST

In the 1994 national health care debate, AARP was accused of opposing the "single payer" approach to health care reform because it would lose money from its medigap policies provided by Prudential. AARP's Board of Directors and its Executive Director, Horace Deets, responded by saying AARP was willing to give up every dime it received from Prudential if Congress passed and the President signed comprehensive health care reform legislation.
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MORE INFORMATION

Residents of Alaska,Idaho,Oregon and Eastern Washington, may call toll free to the Seattle office at 1-800-992-8716 for more information about AARP. In Seattle, Washington call (206) 526-7918

For more accurate information about AARP available on the Web, contact the National AARP Web Site.

Return to the Portland, Oregon AARP Chapter #158 Web Site.

Return to the Senior Citizen Web Pointer.
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