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Congressional Response: Representative Gene Green (D-29th, Texas) Responds To Your Notch Reform Petition
Social Security, Notch Compensation I am pleased to post my views on HR 97: a bill designed to amend title II of the Social Security Act to allow workers who attain age 65 after 1981 and before 1992 to choose either lump sum payments over four years totalling $5,000 or an improved benefit computation formula under a new 10-year rule governing the transition to the changes in benefit computation rules enacted in the Social Security Amendments of 1977, and for other purposes. I am a long-time supporter of Notch compensation bills, and am happy to share my views. In 1977, in response to projections of insolvency within 3 or 4 years, Congress passed legislation to revise the way Social Security benefits were calculated for future retirees. Rather than decreasing benefits to those already receiving Social Security, Congress began the reductions for those born on or after January 1, 1917. As a result, seniors born in the 1910s and 1920s received lower Social Security benefits than they would have if they were calculated under the old law. While it may come as small consolation to Notch recipients, two facts must be mentioned. First, comparing the Social Security taxes paid into the system, Notch recipients generally recover the retirement portion of Social Security more quickly than subsequent retirees. Also, the replacement rate for Notch recipients - the level of pre-retirement earnings replaced by benefit payments - is higher than the rate baby boom retirees will receive. Nonetheless, Congress should address this issue. That is why I am a cosponsor of H.R. 97, the Notch Fairness Act of 2001. This legislation would allow Notch recipients to choose either lump sum payments over four years totaling $5,000 or an improved benefit computation formula under a new 10-year rule governing the transition to the changes in benefit computation rules enacted in the Social Security Amendments of 1977. Please be assured that I will do all I can to see that Notch victims receive fair compensation. Thank you again for the opportunity to post my views on the TREA Senior Citizens League website. Please do not hesitate to contact me with your concerns on any other issue or if you think I can be of service. September 2002 | ||||||||
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