Is AARP ready to cut a deal on Social Security

By Will Parry

Is AARP’s national leadership ready to cut a deal at the expense of the millions who rely on Social Security for their daily bread?

A story in the Wall Street Journal on June 17 reported that AARP, after a “wrenching” internal debate, “is dropping its long-standing opposition to cutting Social Security benefits.”

CEO A. Barry Rand initially denied that the AARP’s position had changed. But Rand’s “clarifying” follow-up statement did nothing to insulate his organization from the outrage of Social Security’s defenders.

“AARP has now concluded that change is inevitable and wants to be at the table to minimize the pain,” the Journal reported. It quoted AARP Policy Director John Rother: “The ship was sailing. I wanted to be at the wheel when that happens.”

“Everybody knows we need to look at a package of different changes to Social Security to make it stronger for the long term,” said David Certner, AARP legislative policy director. “And we’re certainly willing to talk about a package of changes that will keep Social Security strong.”

The AARP readiness to open Social Security to troubling revisions triggered a firestorm of protest from the many advocates who have been fighting both to preserve the integrity of Social Security and to strengthen its role as the nation’s prime social insurance program. AARP’s own switchboard was reportedly deluged with protest calls from its members.

The New York Times said AARP’s stance “could provide added ammunition to fiscal conservatives who have sought unsuccessfully to restructure Social Security and chip away at the benefits it promises older Americans.”

CNN reported that the AARP’s change in posture “has already sent shock waves through the Beltway’s large and influential entitlement reform community. It’s prompted calls from lawmakers and centrist and conservative groups for Congress to seize the initiative and agree to cut benefits.”

One such centrist group, the think tank “Third Way,” immediately welcomed the news.

“Today marks a watershed moment in American politics,” said Jonathan Cowan, president of Third Way. “Now that they (AARP) have opened the door to reform, it is time for lawmakers to walk through it.”

Significantly, ex-Senator Alan Simpson, an archenemy of Social Security, welcomed the AARP position. “If they come around and say they are ready to do something, it will be like the Arctic icecap cracking,” Simpson said.

AARP’s stance gives cover to those in Congress, Democrat as well as Republican, who are looking for an excuse to rob Social Security in the name of attacking the budget deficit.

“The timing of AARP’s statements was particularly bad,” said Max Richtman, executive vice president of the National Committee to Preserve Social Security and Medicare, “because it came in the midst of deliberations between the Obama administration and Congressional Republicans about the debt ceiling and overall deficit reduction.

“AARP is the 800-pound gorilla, but they do not speak for seniors,” Richtman said.

The Alliance for Retired Americans immediately rejected AARP’s policy of compromise and retreat.
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“There is no ambiguity on where the Alliance for Retired Americans stands on Social Security,” said ARA Executive Director Ed Coyle. “Never has been, never will be. We are against Social Security cuts for seniors.”

That fighting position is shared by the broad Strengthen Social Security coalition, whose 300 affiliated organizations include ARA. In recent months, as the deficit hawks stepped up their assault on the integrity of the program, AARP declined an invitation to join the coalition.

“AARP does not speak for all seniors,” Coyle said. “And on this topic, probably not for many of their own members.”

Over the years as advocates fought to defend and strengthen Social Security and Medicare, AARP has largely gone its own way. In 2003, the organization lent critical support to the enactment of a version of Medicare Part D that provided drugs to seniors, but enriched the insurance and pharmaceutical industries in the process.

In Washington State, AARP representatives play a constructive and cooperative role in the Senior Lobby. But no state-level activity can offset failure to defend the integrity of Social Security.

President Robby Stern of the Puget Sound ARA said the AARP stance “has opened the door for the enemies of Social Security and created cover for weak-kneed Congressional representatives and senators to do real damage.”

From AARP CEO Rand’s statement, Stern said, “we really do not know where they stand on such critical proposals as (1) raising the retirement age; (2) changing the COLA to one less advantageous to beneficiaries; (3) reducing benefits for some Social Security recipients; (4) eliminating or raising the cap to fully fund Social Security for the next century; (5) allowing the FICA holiday for wage earners to lapse at the end of the year; or (5) opposing any tax holiday for employer FICA contributions.”

“It is time for AARP to be specific on where they stand on specific proposals, both positive and negative,” Stern said. “It is not enough to state that they are against privatization.”