Entitled to Know

There are a number of Social Security items of note today...first this Wall Street Journal article regarding “payday lenders” and continuing attempts to take advantage of seniors who receive direct deposit payments from Social Security each month. The WSJ reports:

“Social Security recipients with direct deposit can effectively use future benefits as collateral for short-term, high-interest loans. Some lenders require borrowers to have their Social Security checks deposited directly into banks that partner with the lenders. Typically, the banks are in other states and provide no checks or ATM cards to the borrowers. Thus, borrowers can get their monthly Social Security benefits only by visiting the lenders to pick up what remains after loan payments, interest and fees are deducted. Some lenders 'attempt to exercise too much control' over payments sent to beneficiaries and
then automatically transferred to the lenders, Social Security said”.

You can expect lenders to fight any changes. So far, SSA has only asked for public comment in a Federal Register notice and the agency says it has not decided what changes to make.

It’s Not Too Late

A reminder to seniors...it’s not too late to file for a stimulus check. Even though the IRS April 15th tax deadline has come and gone you have until the end of the year to file for a stimulus check. The IRS Stimulus Information Center advises Social Security recipients:

You can also download the 1040A form, all of the details you need to file a stimulus request from the IRS and free software to process an online filing here.

So now what? The Internal Revenue Service will deliver rebate checks to those who qualify, starting in May. For the vast majority of Americans, they just need to file their usual 2007 tax return. But it could be a little trickier for some Social Security recipients and disabled veterans who wouldn’t normally file a tax return. They’ll need to file this year, even if they don’t owe any tax, to ensure they hit IRS’s radar. According to the IRS:

The IRS and Treasury will be working closely with the Department of Veterans Affairs and Social Security Administration along with beneficiary organizations to ensure that all eligible individuals know what to do to receive a stimulus payment.

The stimulus legislation also provided $31 million in addition funding to the Social Security Administration to provide staff and training to help seniors navigate the stimulus process.

The CCH group is a tax analysis firm which has provided a detailed description of the stimulus rebate and how the checks will be calculated. The Treasury Department also has a Fact Sheet describing the distribution formulas.

Unfortunately, scammers have already found a way to try and take advantage of seniors through a phone and email scam using the rebate at bait. The IRS never sends unsolicited emails and isn’t offering check “advances” so the IRS warns seniors to beware.

by Barbara B. Kennelly, NCPSSM President/CEO

Many a cynic said it couldn’t be done. But last night the House and Senate compromised on an economic stimulus package that improved with time. Thanks to the foresight and hard-fought efforts of Senate Finance Committee Chairman Max Baucus, Senator John Kerry and others who took up the cause, more than 20 million seniors who otherwise would have been excluded will now receive stimulus checks.

When the talk of an economic stimulus plan first began, it was clear that once again seniors would be ignored in any Washington efforts to jump-start the economy. The same had happened in 2001 and 2003, so this administration’s blind spot to seniors really wasn’t a surprise.

But this year was clearly different. American seniors are sick and tired of policies that have left them with dwindling COLA’s, skyrocketing healthcare costs and massive budget cuts in programs they desperately need. They’re feeling the pinch of this economy as much as anyone so the suggestion that a retired person living on $3,000 of Social Security doesn’t need or deserve an economic boost as much as someone earning $70,000 was the proverbial last straw.

Congress heard from America’s retirees on this one because the fundamental unfairness of ignoring more than 20 million seniors in a stimulus plan, which was supposed to be “timely, targeted, and temporary”, could not be ignored. National Committee members visited, emailed and called their Congressional representatives. In all, there were more than 3,000 contacts to Capitol Hill made by NCPSSM members and supporters in a just a couple of weeks.

Grassroots efforts still work. Individual voices raised together can get Washington’s attention. Something we should all remember during this election year...you can be sure your members of Congress do.

The spin cycle is in overdrive this morning as the Senate tries to find a way to do the right thing in a stimulus package. Most Senate Republicans, pushed hard by the White House, refused to budge in last night’s vote by allowing seniors to be included in any stimulus plan .

Today’s Roll Call summed it up this way:

“’I think it’s decided. I think the Senate will just pick up the House plan,” said Sen. Mary Landrieu (D-La.), who ripped the GOP. 'They don’t blink to spend an extra dollar in Iraq, but if you ask them to spend an extra dollar in America they all cave.’ Sen. Debbie Stabenow (D-Mich.), whose home state has been hard hit by unemployment, blamed last-minute pressure from the White House for the defeat. ‘The White House put incredible pressure on them,' she said. Stabenow said it would be 'very difficult to come up with a new package this week given the need for unanimous consent to avoid restarting time-consuming procedural maneuvers.’”

Senator John Kerry (DMA) has sent a letter to his fellow Senate Finance Committee members urging they include seniors living on fixed incomes in the economic stimulus package negotiated in the House. Kerry says:

“The people who need a stimulus check the most will spend it the fastest. Why, then, is the Administration abandoning millions of seniors in an economic stimulus package? Senior households currently spend 92% of their income each year. Many retirees live check to check and would immediately spend any rebate they receive. This should be the first step in any plan to pump billions of dollars into the economy as quickly as possible.” Barbara B. Kennelly, President/CEO The National Commitee to Preserve Social Security and Medicare and Member of the Social Security Advisory Board

Here we go again...

Just as we saw in stimulus packages in 2001 and 2003, America’s seniors living on fixed incomes are once again the forgotten constituency. The stimulus plan negotiated in the House ignores millions of retired Americans who live on their savings, pensions and Social Security and feel the pressure of high prices and the slowing economy as acutely as anyone. These seniors are in the direst need and most likely to spend any additional income on necessary resources such as medicine, utilities, food and clothing. They are literally the demographic poster-child for the stated stimulus goals:

Timely - Social Security Commissioner Michael Astrue says checks could be delivered in 6 weeks, compared to the IRS’s 10-12

Targeted- Social Security databases allow easy access to Social Security beneficiaries. Americans 65+ spend 92 percent of their annual income, which is more than any other demographic group with the exception of those under age 25.

Temporary-One time checks would be issued to seniors (through Social Security) just as currently planned for workers (through the IRS).

Including retirees in any effort at economic recovery makes good sense yet the administration treats seniors as if they’re just asking for a handout. Consider Treasury Secretary Paulson’s answer to a reporter’s question about including Social Security beneficiaries. Clearly the Secretary believes stimulus for millions of seniors is merely a “gift”: “

The Christmas season has come and gone. We're not trying to decorate a Christmas tree here”... Treasury Secretary Henry Paulson

While Congress and the President start work on legislation to stimulate our slowing economy, it appears America’s 23 million seniors will once again be overlooked. This, in spite of the undeniable truth that the economic downturn and rising prices have hit older Americans especially hard since many live on a fixed incomes with little ability to increase their earnings.

Once again, legislative proposals are focusing on tying stimulus to tax relief or rebates. However, millions of retirees do not earn enough to require filing a tax return and therefore are not eligible for a tax rebate, yet they are also not poor enough to qualify for low-income programs being considered for increases.

According to the Bureau of Economic Analysis, Americans over 65 are responsible for 14% of all consumer spending. Seniors are also among the demographic groups most likely to spend any stimulus benefit they receive.

The most recent Consumer Expenditure Survey by the Bureau of Economic Analysis says the average household headed by someone over age 65 spent 92% of their annual income, which is higher than any other demographic group with the exception of those under age 25. Seniors spend what they earn, especially as prices continue to rise, because they live on a fixed income. Why should America’s fastest growing demographic continually be ignored in these economic recovery measures?

We’ve sent a letter to Congress today, and will provide testimony to the Senate Finance Committee next week, urging Washington to use Social Security as the vehicle to distribute to American retirees the same stimulus checks being considered for younger Americans.

It’s a boost for seniors and our economic recovery.