Notch Reform Bulletin

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Notch Reform Bulletin

Major Study on the Notch Expected Soon

A new study is expected to bring renewed attention to the Notch controversy. The study says that the disputed Notch disparity not only exists, but especially penalized persons who retired at age 65 instead of age 62. Full details of the study by respected economist, Dr. John Haldi, will be covered in the March issue of this newsletter.

The term “Notch” refers to the disparity in Social Security benefits paid to people born in 1917 and the years immediately thereafter, and those paid to people born before them with similar work/earnings records. Many persons born during the Notch period believe they have not been treated fairly and are not receiving the benefits that Congress intended. The study is particularly significant because the Social Security Administration (SSA) and some in the government, including a 1994 Commission on the Social Security Notch, claim that those born during the Notch period are treated fairly and receiving the benefits that Congress intended. The study says that Congress should reconsider the issue.

New Notch Reform Option Considered

TSCL hopes to work with Members of Congress to improve various Notch Reform Proposals and to discuss new ones. One new idea may be to provide a permanent increase of 10% to monthly Social Security benefits for individuals who receive less than $1,500 per month in benefits and who are born from 1917 through 1926. For example, if a Notch Baby receives $700 per month, that benefit would be increased to $770 per month. As proposed, this new benefit amount would naturally be adjusted by the regular annual COLA increase. The higher amount would be received over the beneficiaries’ lifetime or as survivor’s benefits for those who receive benefits based on the record of a deceased Notch Baby.

In our survey at http://www.tscl.org/NewContent/101738.asp you will find questions about the proposal and the option for Notch Reform you prefer. Your input will help us work with Members of Congress to introduce and strengthen Notch Reform legislation in this new session. These surveys help us show your Members of Congress the importance you place on particular legislative initiatives and help TSCL protect your earned benefits.

For a related story see, “When in Doubt, Examine the Record,” at http://www.tscl.org/NewContent/101524.asp.

February 2003