WASHINGTON — AARP CEO Bill Novelli today sent a letter to Treasury Secretary Paulson urging him to take immediate action to temporarily freeze mandatory retirement account withdrawals.

Currently, Americans aged 70 ½ and over are required to take distributions from their retirement accounts based on the fair market value of their account on the last day of the previous year.  Given the overall decline in the stock market, this could force older Americans to make a choice between taking a withdrawal that was calculated based on much higher values in retirement accounts or facing a high tax penalty. Making minimum withdrawals optional rather than mandatory for this year beginning immediately would help give older Americans some much needed financial flexibility as they struggle to manage their finances during this difficult economic time. 

Excerpts from Novelli’s letter to Secretary Paulson follow: 

“The sudden decline in the economy and plunging stock markets has jeopardized the retirement savings of millions of retired workers.  In addition to steps that are already being taken to stabilize the financial markets, we believe it is also critical to help stabilize individual finances. 

“Given the impending December mandatory retirement distribution deadline, we urge you to act quickly to exercise your authority and implement an immediate, temporary freeze on mandatory retirement account withdrawals.  We also urge you to provide immediate relief for retirees who do not have the option to delay withdrawals and who find it necessary in these difficult economic times to withdraw funds from retirement accounts to meet daily living expenses. 

“We believe that fairness dictates that we provide relief for these individuals who have no other recourse than to use their retirement savings to meet current living expenses.” 

 A complete copy of Novelli’s letter follows.  For more information, contact AARP Media Relations.

Dear Mr. Secretary: 

Thank you for meeting with the AARP Board of Directors recently to discuss the work you are doing to stabilize the financial markets and improve the economic outlook.  The members of the Board were impressed with your candor and dedication. 

I would like to follow up on one particular issue raised at that meeting – the issue of minimum required distributions (MRD) from retirement accounts.  As you know, under current law, individuals must begin to withdraw certain minimum amounts every year from their IRAs and 401(k) accounts when they reach age 70 ½ based on the fair market value of the account on the last day of the previous year.  Failure to take a required distribution by December 31 of this year results in a tax penalty equal to 50 percent of the amount of the distribution.  

Given the current state of the economy and the stock markets, this means that many older account holders will be required to take a larger than anticipated withdrawal (based on the fair market value of the account on December 31, 2007) at a time when their investments have suffered substantial losses as measured by the various indices.  The Dow Jones Wilshire 5000 Index, for example, closed at 8,502.40 on October 27, 2008.  This level represents a 45 percent decline from the stock market peak that occurred on October 9, 2007.  This index is now at the same level it was in July of 1997.  

The sudden decline in the economy and plunging stock markets has jeopardized the retirement savings of millions of retired workers.  In addition to steps that are already being taken to stabilize the financial markets, we believe it is also critical to help stabilize individual finances.  Given the impending December MRD deadline, we urge you to act quickly to exercise your authority and implement an immediate, temporary freeze on mandatory retirement account withdrawals.  We also urge you to provide immediate relief for retirees who do not have the option to delay withdrawals and who find it necessary in these difficult economic times to withdraw funds from retirement accounts to meet daily living expenses. We believe that fairness dictates that we provide relief for these individuals who have no other recourse than to use their retirement savings to meet current living expenses. 

AARP commends you on your leadership in dealing with the current financial crisis, and urges you to take the necessary step to also bring relief to those who have suffered heavy personal losses.  We support your efforts to stabilize the financial markets and improve the economic outlook of both individuals and the nation.  Working together, we can better ensure the financial security of Americans of all ages. 

Sincerely,

William D. Novelli

Chief Executive Officer

New Congressional Award Honors Leaders for Championing for Older Americans  

DUBUQUE, Iowa – Divided We Fail Iowa announced today that U.S. Senators Charles Grassley (R-IA) and Tom Harkin (D-IA) and all five of Iowa’s Representatives in the U.S. House have now officially endorsed Divided We Fail , a diverse nationwide initiative of businesses, consumers and labor organizations calling for bipartisan action on health and financial security issues.

Get ready for the Divided We Fail Van Tour! Beginning the last full week in September, AARP members and other interested parties are invited to come to van tour stops to learn about and discuss health care and financial security issues and how to break the gridlock in Washington. Van stops include:

• Sept. 23, 6 – 7:30 p.m., Pizza Ranch, 1404 Boston Ave., Ames
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• Sept. 24, 11:30 a.m. – 1 p.m., Bonanza, 2700 4^th St. SW, Mason City
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• Sept. 25, 7:30 – 9 a.m., Café in the Park, 1015 Riverside, Adel
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• Sept. 26, 7:30 – 9 a.m., Crouse Café, 115 E. Salem Ave., Indianola
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• Sept., 29, 5:30 – 7 p.m., Bonanza, 2175 N. 25^th St., Ft.Dodge
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• Sept. 30, 11:30 a.m. – 1 p.m., Kirby’s Café, 3101 Main St., Emmetsburg
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• Sept. 30, 5:30 – 7 p.m., Pizza Ranch, 1325 Hwy. 169 N., Algona
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• Oct. 1, 6 – 7:30 p.m., Pizza Ranch, 2305 S. Center St., Marshalltown
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• Oct. 8, 11:30 a.m. - 1 p.m., Decker Hotel, 128 N. Main St., Maquoketa
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• Oct. 8, 6 - 7:30 p.m., Bishops, Kennedy Mall, 555 JFK Rd., Dubuque
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• Oct. 15, 11:30 a.m.  - 1 p.m., Pizza Ranch, 2020 W. Bremer, Waverly
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• Oct. 16, 11:30 a.m. - 1 p.m., Pizza Ranch, 1900 1st St. W., Independence
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• Oct. 16, 6 - 7:30 p.m., Pizza Ranch, 212 College Dr., Decorah
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• Oct. 17, 11:30 a.m. - 1 p.m., Johnson’s, 916 High St., Elkader

Please contact Mark if you need any other information about these events @ 515.697.1021 or mfetterhoff@aarp.org.

Mary Yearns, Human Development and Family Studies, (515) 294-8520, yearns@iastate.edu

Laura Sternweis, Extension Communications and External Relations, (515) 294-0775, lsternwe@iastate.edu

The Iowa Department of Elder Affairs and Iowa Legal Aid’s Legal Hotline for Older Iowans are presenting a series of free Elder Law seminars on October 14 and 21, 2008. The seminars will provide older Iowans and their caregivers with valuable information to protect their rights and limited resources. Pre-registration at least ten days prior to the seminars is requested to ensure that everybody receives the written seminar materials.

The first seminar on October 14 is about life planning issues. People will learn about health care directives, financial powers of attorney, guardianships, conservatorships, wills, estate planning tools to avoid probate, and Medicaid and other programs to help pay nursing home expenses.

The October 21 seminar will focus on consumer protection and public benefit issues, including identity theft, predatory lending practices, illegal debt collection activities, and programs to help pay Medicare premiums, prescription expenses and home care costs.

These seminars are funded in part with grants from the U.S.

Administration on Aging and the Lawyer Trust Account Commission. Both seminars will begin at 12:30 p.m. and end at 3:45 p.m. They will be broadcast over the Iowa Communications Network at the following locations:

Atlantic - Atlantic Public Library, 507 Poplar Street Boone - Ericson Public Library, 702 Greene Street Burlington - Great River Area Education Agency, 3601 West Avenue, East Entrance Carroll - National Guard Armory, Highway 30, 1712 LeClark Road, South Entrance Cedar Rapids - Thomas Jefferson High School, 1243 20th St. SW, Room 104A Charles City - North Iowa Area Comm. College, 200 Harwood Dr., Front Entrance, Rm 106 Clarinda - Iowa Western Comm. College, 923 East Washington, Room 306 Clinton - Clinton Community College, 1000 Lincoln Blvd, Room 105 Corning - Corning High School, 904 8th St., Room 12 Council Bluffs - Council Bluffs Public Library, 400 Willow Avenue Des Moines - Ola Babcock Miller Bldg., East 12th St. and Grand Ave., Room 308 Forest City - Forest City High School, 206 W. School Street, Room 328, SE entrance Hiawatha - Hiawatha Public Library, 150 West Willman Street Humboldt - Humboldt Public Library, 30 6th Street, North Iowa City - Iowa City Public Library, 123 South Linn Street, Meeting Room D Iowa Falls - Iowa Falls-Alden High School, 1903 North Taylor, Room S217 Johnston - Heartland Area Education Agency, 6500 Corporate Drive, East Side Entrance Lamoni - Lamoni High School, 202 N Walnut Street, Ag Room Manchester - Manchester Public Library, 304 N Franklin Street Marshalltown - Iowa Veterans Home, 1301 Summit, Ford Conference Room, Sheeler Building Muscatine - Muscatine Comm College, 152 Colorado Street, Larson Hall, So. Entrance, Room 60 Oskaloosa - Oskaloosa Public Library, 301 South Market, South Entrance Ottumwa - Great Prairie Area Education Agency, 2814 N Court Street, Front Entrance Sheldon - Sheldon National Guard Armory, 920 Western Avenue, West Entrance Sioux City - Department of Human Services, 822 Douglas St., Fourth Floor Waterloo - Department of Human Services, Pinecrest Office Building, 1407 Independence Ave. West Union - West Union Community Library, 210 North Vine Street, Heiserman Annex

To register for any of the seminars, or for more information, call the Legal Hotline for Older Iowans at 1-800-992-8161, or e-mail landerson@iowalaw.org.

DES MOINES −AARP State Director Bruce Koeppl announced AARP is contributing $20,000 to help older Iowa disaster victims rebuild their lives.  

"We are pleased to be able to help older Iowans struggling to put their lives back together after the devastating tornados and massive floods," said Koeppl. “With almost 20,000 Iowans age 60 and over requesting FEMA assistance, older Iowans’ long-term recovery needs are immense,” Koeppl said.  “We hope this contribution will ease some of the immediate unmet needs and will encourage Iowans to keep our seniors top of mind as they look for ways to volunteer their time and talents to rebuild our state.”

AARP is contributing the $20,000 to Aging Resources Foundation Disaster 08 Relief Fund. Aging Resources Foundation is an established foundation within the Iowa aging network to fund unmet needs of older Iowans who lack access to adequate housing, meal services, clean up and repair services, debris removal, sanitation, clothing, medical devices and orthopedic supports.   

Koeppl met with Governor Chet Culver at the Rebuild Iowa Commission session recently in Waterloo to present AARP’s contribution in recognition of the disproportionate effect the recent disasters have had on Iowans age 60 and over. 

“I’m pleased AARP has joined with the many organizations, companies and individuals who are helping to rebuild Iowa,” said Governor Culver.  “Iowans have been through a lot this year.  But by locking arms and working together, I am confident that we can rebuild our state stronger, safer and better than before.” 

The Aging Resources Foundation 08 Disaster Fund is designed to meet the gaps where FEMA and other assistance programs fall short.  "There are so many cases where older Iowans have lost everything - their homes where they may have lived for 30 or more years, their communities, and basics like clothing and medical equipment,” said Donna Harvey, Director of the Hawkeye Valley Area Agency on Aging, one of the areas with the most disaster-affected older Iowans. “This fund is set up to help with everything from assisting with transportation to doctor’s appointment to helping replace the orthopedic shoes one of our victims lost in the tornado.  These are basic, unmet needs that are mounting and many times uncovered by other programs.”   

“With our shared mission of helping Iowans age with independence, dignity and purpose, AARP is pleased to contribute funding that will support older Iowans through the existing Area Agency on Aging network, and we hope more people will contribute as well,” said Koeppl.   

Iowans interested in building on the AARP contribution can visit www.agingresources.com for more information, or call or write Aging Resources Foundation, 5835 Grand Ave., Suite 106, Des Moines, Iowa 50312-1437.  Tax-deductible contributions should be made out to: Aging Resources Foundation Disaster 08 Relief. 

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About AARP

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world’s largest-circulation magazine with over 33 million readers; AARP Bulletin, the go-to news source for AARP’s 39 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

About Aging Resources and the Aging Resources Foundation

Aging Resources of Central Iowa is a private, non-profit service agency that administers programs and services to over 100,000 elders 60 years of age and older in central Iowa.  Aging Resources celebrates 35 years of service in 2008.  The mission of Aging Resources is to lead, advocate, and serve as well as plan and coordinate resources in the provision of services to older adults in central Iowa, their families, caregivers, or representatives, enabling elders to lead independent, meaningful, and dignified lives in the least restrictive environment.  Aging Resources assesses and surveys the needs of older adults within central Iowa, identifies service gaps, and develops plans to fill these gaps. The agency works to insure that older Iowans have access to appropriate programs, services, and institutions including adult day care, advocacy, case management, chore service, congregate and home-delivered meals, counseling, emergency assistance, family caregiver services, home repair, homemaker, information and assistance, legal assistance, community mental health outreach, personal care, respite care, transportation, and well-elderly clinics.

Aging Resources Foundation Aging Resources’ Board of Directors established a private, non-profit foundation, Aging Resources Foundation is a private, non-profit foundation established in 2002. Aging Resources Foundation accepted the responsibility to receive and distribute disaster relief funds for the needs of older Iowans who suffered significant personal losses in the Iowa Floods of 2008.  All funds contributed to the Aging Resources Disaster 08 Relief Fund will be distributed state-wide to older persons in greatest need in accordance with an established funding formula. All monetary contributions are tax deductible.  Formal acknowledgement of all donations will be made by letter/receipt.

 Do you have legal questions, but nowhere to turn for information?  The Department of Elder Affairs and the Iowa Legal Aid’s Legal Hotline for Older Iowans is sponsoring FREE Seminars across the State for Older Iowans and their caregivers. "Life Planning Issues" on July 15, 2008 and "Consumer Issues & Public Benefits" on July 29, 2008.

These free seminars will help you:  

• Learn about Medicaid and other programs that will help pay nursing home and other expenses.
• Put your legal affairs in order tin case you become incapacitated or pass away.
• Avoid problems with creditors, identity thieves and others who could abuse you.

Both seminars take place over the Iowa Communications Network at 25 sites around the state.  Go to the following website for more information and a registration form.http://www.iowalegalaid.org/link.cfm?2260