Notch Bulletin: Notch Reform May Be Considered As Part of Social Security Reform

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Notch Bulletin: Notch Reform May Be Considered As Part of Social Security Reform

Is Congress waiting for all the Notch Babies to die so that the government wonï¿½t have to fix the Notch disparity? This is one of the most commonly shared beliefs that we hear from those of you who are affected by the Notch. In 2004, however, Notch Babies gained the largest number of co-sponsors for The Notch Fairness Act since the legislation was first introduced. Clearly Members of Congress have not forgotten about Notch Babies, and Notch reform may be closer than you think.

TSCL is increasingly hearing from Members of Congress that Notch reform will be addressed as part of more comprehensive Social Security reform. Congress is likely to take up the debate this year. After his reelection, President Bush announced his plans to start to work immediately on a Social Security overhaul.

The two are closely related. The Notch disparity was created by legislation that was part of Social Security reforms enacted in the late 1970s through early 1980s. Legislation in 1977 abruptly changed the benefit formula affecting persons who became eligible to retire just two years later. Similar changes to the Social Security benefit formula are once again under consideration. The Congressional Budget Office analyzed proposals just last year.

To build consensus for a resolution of the Notch, however, it will take sustained effort and pressure from millions of Notch Babies and their families. Itï¿½s especially important to educate the generation born during the 1950ï¿½s who could be among the first wave of Baby Boomers affected by new Social Security reforms ï¿½ and who could become the Notch Baby Boomers.

This does not have to happen, but it could ï¿½unless Congress takes action in a timely manner. In order to avoid sudden drops and disparities in benefits, Social Security reforms must be phased in gradually, over a long period of time. Also, Congress can find much of the money to pay Notch Reform benefits without increasing taxes or jeopardizing the Social Security Trust Fund by clamping down on fraud, waste and abuse in government programs.

A strong ally in the Senate is Minority Leader Harry Reid (NV), who is one of the most influential, respected members of the U.S. Senate on both sides of the asile. He is a long-time, outspoken and loyal supporter of Notch Reform and the $5,000 settlement. Never before have Notch Victims been so close to success!

We need to keep up the momentum so that Notch reform is kept on the front burner as other Social Security reforms are debated and move through the Congress. Urge support not only for Notch Reform but ask your lawmakers to begin the process of enacting gradual reforms to strengthen Social Security for our future.

January 2005