Sen. Simpson Scrutinizes AARP’s Financial Interests, Hiring Practices

WASHINGTON — Sen. Alan K. Simpson (R-Wyo.) is investigating the nation’s largest and most powerful seniors organization, the American Assn. of Retired Persons, and its web of business interests.

Simpson, speaking Friday at a hearing of a Senate Finance subcommittee on Social Security, said he and his staff are examining the AARP’s books, financial interests and hiring practices.

John Rother, the group’s legislative director, said the AARP’s books are open and it has nothing to hide from Simpson.

“They’re a huge cash-flow operation,” Simpson said, describing the AARP as “33 million people paying $8 dues, bound together by a common love of airline discounts and automobile discounts and pharmacy discounts, and they haven’t the slightest idea what the organization is asking for.”

AARP membership dues are $8 a year, and benefits of belonging include access to a range of products offered by vendors who, through the AARP, sell group health, life and auto insurance, annuities, mutual funds and prescription drugs.

Simpson said he is trying to determine the cash flow of nine AARP “businesses” and the group’s cut on sales of various products.

“They’re going to say that isn’t material . . . and I say: ‘Yeah, it is,’ if you’re just going to drive the American people over a cliff,” he said, claiming the group wants long-term health care for all Americans, regardless of their net worth or income.