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Social Security: The Notch Issue

HRD-88-62 Published: Mar 24, 1988. Publicly Released: Mar 24, 1988.
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Highlights

Pursuant to a congressional request, GAO reviewed the disparity of social security benefits, known as the notch, between classes of recipients, resulting from the Social Security Amendments of 1977, specifically: (1) how the notch arose; (2) its effect on beneficiaries; (3) the financial implications of some proposed notch legislation; and (4) the socioeconomic characteristics of affected social security recipients.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
In evaluating legislative proposals concerning the notch issue, Congress may wish to consider: (1) financing notch legislation which would be as neutral as possible in its effect on the Social Security Trust Funds and, where relevant, the federal budget; (2) the feasibility of implementing the legislation; and (3) not lengthening the transition period.
Closed – Implemented
Congress has responded to this recommendation by not advancing legislation that would raise Social Security benefit payments and incur additional costs to the Trust Fund.

Full Report

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Topics

BeneficiariesCongressional oversightCost of livingRetireesCost overrunsFinancial managementFunds managementInflationProposed legislationSocial security benefitsStatistical methods