I work with several senior citizens that are part of the Notch group. We have found the TSCL web site with information on Notch legislation, but we can't find any information on how much their benefits would increase per month. If they chose not to take the $5,000 Lump-Sum, then how will they find out what their monthly increase will be? —J.C.
From the Editor:
Under “The Notch Fairness Act,” Notch Babies born from 1917 through 1926 would have a choice of receiving a Lump-Sum of $5,000, payable in four annual installments, or improved monthly benefits. No information is posted about how much an individual’s benefit would increase per month because each person’s benefit would be different.
In determining the improved monthly benefit, the Social Security Administration will compute a Notch Baby’s benefit under the “old law” (pre-1977 changes) and the “new law” (post-1977 changes). If the old law yields a higher benefit, a percentage of the difference would be added to their monthly benefit. The percentage varies depending upon the year in which the person is born.
If the Notch Fairness Act is passed and becomes law, (the legislation HAS NOT passed yet), Notch Babies or survivors receiving benefits based on a Notch Baby’s account will have a certain period of time in which to contact the Social Security Administration in order to make their choice of either the Lump-Sum or the improved monthly benefit. At that time Notch Babies will be able to ask for a calculation of what their improved monthly benefit will be. To take the Lump-Sum benefit option Notch Babies or their survivors will have to apply. If the Social Security Administration does not receive an election for the Lump-Sum by the deadline, the individual will automatically receive the improved monthly benefit.
Because the period in which Notch Babies must make their choice is likely to be relatively short (perhaps 90 days or less) I recommend checking the TSCL web site at http://www.tscl.org on a regular weekly basis if the legislation passes. That way Notch Babies can keep up with the latest news on Notch Reform (and other news of interest to seniors). Signing up for TSCL’s Notch Victim Register and to receive The Social Security & Medicare Advisor (a free online newsletter) is another way to stay informed of the latest developments. Sign up at: http://newsletter.tscl.org.
The following 1996 chart illustrates improved monthly benefits under “The Notch Fairness Act.” The chart is for illustrative use only and actual benefit amounts will differ.
Year of Birth | Social Security Benefit | Notch Fairness Act Benefit |
1913 | $859 | $859 |
1914 | $881 | $881 |
1915 | $903 | $903 |
1916 | $933 | $933 |
1917* | $843 | $907 |
1918* | $811 | $889 |
1919* | $769 | $854 |
1920* | $751 | $840 |
1921* | $765 | $840 |
1922* | $778 | $840 |
1923* | $788 | $840 |
1924* | $808 | $840 |
1925* | $832 | $840 |
1926* | $823 | $840 |
1927 | $840 | $840 |
1928 | $842 | $842 |
*Notch years
Source: (Former) Representative Mark. W. Neumann (R-WI), “The Notch Fairness Act of 1996.”
April 2003
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