Just as important is the question of whether a group that makes millions selling financial services to its members is quite as impartial a player in the debate over private accounts as it would appear. While wearing its policy hat, AARP, headed by CEO William D. Novelli, presents itself as a nonpartisan organization serving the interests of its over-50 members. And there's little doubt that most do not want to see any change to the current system for fear of benefits cuts.
But it is equally clear that AARP makes a substantial sum of money from its partners' sales of mutual funds and other investment products to members. That raises the appearance of a potential conflict of interest. Whatever version of reform passes -- whether Bush's accounts carved out from payroll taxes, or the "add-on" accounts that many liberals favor to encourage retirement savings -- the overhaul is likely to create new markets and opportunities for some suppliers of financial products and lead to diminished opportunities for others. AARP has a stake in that debate. Unlike financial firms, however, AARP has the flexibility to drop waning products and team up with other partners on any new alternatives that emerge.
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http://www.businessweek.com/magazine/content/05_11/b3924050_mz011.htm