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From the Information and Referral Department
by Simone Gaunt and Carol Cizek, I & R Specialists
Elder Services Information and Referral (I & R) department receives many calls during the course of the month from elders with problems or issues they are unable to solve on their own. We would like to share a call we received recently.
Q: WHAT IS THE NOTCH ACT ?
A: The Information and Referral Department at Elder Services has received an inquiry regarding The Notch Act. The term “Notch” refers to the reduction in Social Security benefits paid to people born between 1917 and 1926 compared to those paid to people born before and after those years with similar work and earnings records.
In 1977, Social Security was going bankrupt because of a flawed benefit formula that raised benefits too quickly. That year, congress passed legislation which changed the way benefits were calculated, starting with retirees who were born in 1917 and became eligible for benefits in 1979. The changes were major and the transition between the old and new method of calculating benefits did not work as anticipated. As a result, there was a decrease in benefit payments for retirees born between 1917 and 1926.
When benefits are represented on a chart, the drop in benefits between 1917 and 1926 form a deep “V”, thus the name The Notch Act. Benefits plunged from a peak for retirees born in 1916 and hit the lowest part of the “V” for those who were born in the years 1920-1921. Benefits began to rise for those born in 1922 until they became level with other retirees, starting with those born in 1927.
Many of those born during the notch period feel they have not been treated fairly and are not receiving the benefit that Congress intended. Legislators are in the process of sponsoring several bills which address notch reform.
For further details regarding The Notch Act, you may contact your legislators, the Social Security Office in Pittsfield at 413-499-2432, or the North County Social Security office in North Adams at 413-664-7951.You may also log onto the website, www.tscl.org/NotchReform.asp