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. |
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Topics
BeneficiariesCongressional oversightCost of livingRetireesCost overrunsFinancial managementFunds managementInflationProposed legislationSocial security benefitsStatistical methods