This document is the annual report of the Federal Council on Aging whose purpose is to review and evaluate federal policies and programs affecting older Americans, serve as a spokesperson for older Americans, and inform the public about needs of this group. The first section discusses affiliations and committees of the Council. The second section discusses the activities of the Council in these areas: (1) budget issues; (2) the Older Americans Act; (3) distributing information about the elderly; (4) support for caregivers of the elderly; (5) health issues; (6) coordination with the private sector; (7) intergenerational issues; (8) home equity conversion; and (9) early retirement. The third section includes future developments expected from the caregiver support, housing, health, minorities, and foundations committees with a discussion of the reauthorization of the Older Americans Act. The fourth and final section lists five broadly based recommendations of the Council on procuring demographic data, family caregivers, increasing longevity, intergenerational conflict, and stereotypical labels. (ABL)