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Congressional Response: Representative Gene Green (D-29th, TX) Responds to Your Notch Petition
Thank you for your recent petition in support of Notch fairness. I am a long-time supporter of Notch compensation bills, and appreciate your taking the time to share your views on this issue.
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. 615, the Notch Fairness Act of 2005. 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.
Sincerely,
Gene Green
September 2005
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