Comments on the Social Security Notch Issue
T-HRD-92-46: Published: Jul 23, 1992. Publicly Released: Jul 23, 1992.
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GAO discussed its: (1) work on the "notch" disparity in Social Security benefits; and (2) belief that Congress made the right decision in not advancing notch legislation. GAO noted that: (1) other studies have confirmed and supported its original analysis and findings; (2) the notch group is not worse off compared to other beneficiaries; (3) the notch is an artifact of the corrected wage-indexed formula which restored the historical pattern of initial benefits; (4) beneficiaries immediately preceding the notch group received unintended overcompensation because of the flawed old formula; (5) successive cohorts received higher benefits because their wage base was larger; (6) proposed notch legislation would require additional revenue-raising measures; (7) increased payroll taxes on current workers, who already will receive a lower return on their social security contributions than previous beneficiaries, would be inequitable; (8) the Social Security Administration estimated that the cost of the proposed notch legislation would be $4.6 billion per year in added benefit costs; (9) the Old Age and Survivors Trust Fund has not yet reached minimum long-term solvency, and additional unfunded costs would weaken it further; and (10) due to current economic conditions and adverse trends in all Social Security trust funds, the costs of the notch legislation would exacerbate financial pressures on the social security system.
Feb 24, 2021
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Financial Services:
Fair Lending, Access, and Retirement SecurityGAO-21-399T: Published: Feb 24, 2021. Publicly Released: Feb 24, 2021.
Jan 19, 2021
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Elder Justice:
HHS Could Do More to Encourage State Reporting on the Costs of Financial ExploitationGAO-21-90: Published: Dec 18, 2020. Publicly Released: Jan 19, 2021.
Oct 30, 2020
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Retirement Security:
Other Countries' Experiences with Caregiver PoliciesGAO-20-623: Published: Sep 30, 2020. Publicly Released: Oct 30, 2020.
Sep 24, 2020
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Retirement Security:
Older Women Report Facing a Financially Uncertain FutureGAO-20-718T: Published: Sep 24, 2020. Publicly Released: Sep 24, 2020.
Aug 28, 2020
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Retirement Security:
DOL Could Better Inform Divorcing Parties About Dividing SavingsGAO-20-541: Published: Jul 31, 2020. Publicly Released: Aug 28, 2020.
Aug 13, 2020
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Retirement Security:
Older Women Report Facing a Financially Uncertain FutureGAO-20-435: Published: Jul 14, 2020. Publicly Released: Aug 13, 2020.
Jun 16, 2020
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Retirement Security:
BLS Should Explore Ways to Improve the Accuracy, Timeliness, and Relevance of Its Cost-of-Living MeasurementsGAO-20-422: Published: Jun 16, 2020. Publicly Released: Jun 16, 2020.
Feb 27, 2020
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Private Pensions:
IRS and DOL Should Strengthen Oversight of Executive Retirement PlansGAO-20-70: Published: Jan 28, 2020. Publicly Released: Feb 27, 2020.
Jan 9, 2020
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Social Security Disability:
Action Needed to Help Agency Staff Understand and Follow Policies Related to Prescription Opioid MisuseGAO-20-120: Published: Jan 9, 2020. Publicly Released: Jan 9, 2020.
Dec 18, 2019
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Capitol Police:
Potential Effects of Raising the Mandatory Retirement AgeGAO-20-137R: Published: Dec 18, 2019. Publicly Released: Dec 18, 2019.
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