Notch Legislation 2009

Notch Bulletin: March 2009 Advisor | Print | E-mail
Notch Reform Tops List Of Bills Introduced In New Congress
Notch Babies and their families often feel that Congress plays a waiting game. The longer Congress drags its feet on Notch Reform, the greater the chance the Notch will just quietly “die away.” But with the start of the new Congress and with an overwhelming desire among voters for change, TSCL has high hopes for enactment of Notch Reform.

The Notch Fairness Act (S. 81) was one of the first pieces of legislation to be introduced in the opening days of the new 111th Congress. And for the first time in more than four years, the bill was introduced in the Senate, by Senator David Vitter (LA). The Notch Fairness Act would allow Notch Babies born from 1917 through 1926, and beneficiaries on their accounts, a choice of $5,000 payable in four annual installments, or an improved monthly benefit.

Support the Notch Fairness Act today.

Notch Reform legislation was also introduced in the House. Representative Jo Ann Emerson (MO) re-introduced her bill H.R. 238 that would provide an improved monthly benefit for Notch Babies born from 1917 through 1926.

The Social Security Notch refers to a disparity in the amount of Social Security benefits received by retirees who were born during 1917 through 1926 and other retirees having similar work and earnings record born outside those years. Due to changes in the benefit formula enacted by Congress in 1977, seniors born during the Notch period receive lower benefits than other retirees having similar records. Studies for TSCL have found that Notch Babies appear to receive about $1,000 to $3,000 per year less in benefits than other retirees.

Based on Social Security data through December 2008, TSCL estimates that about 5.3 million Notch Babies could benefit if Congress enacts the The Notch Fairness Act in 2009. We also estimate that the cost of that legislation would be about $24 billion. As of January 31, 2009, payroll taxes earmarked to pay retirement benefits are estimated to be enough to pay benefits for all current retirees and still have extra left over to afford Notch benefits. In addition, TSCL believes the increased Notch benefit payments could even have a stimulative effect on the economy because reform paments would be spent right away.

TSCL hopes you will continue to join our efforts to educate Members of Congress about the need for putting an end to the Notch. Please send a letter or e-mail to your Members of Congress asking them to co-sponsor Notch reform legislation.


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