Social Security: GAO's Analysis of the Notch Issue

GAO discussed the differences in Social Security benefits for retirees with similar work histories. GAO noted that: (1) retirees in the notch group who claim an inequity are comparing themselves to a group of retirees that receive benefits based on an overgenerous formula; (2) proposed legislative remedies for providing additional benefits to the notch group will be costly; (3) further diminishing Old Age and Survivors' Insurance trust fund reserves to finance a notch remedy is not a prudent course of action considering the current weaknesses in Social Security financing; (4) increasing costs to today's workers to finance notch legislation may erode public confidence in the Social Security system; and (5) the administrative complexity of implementing notch legislation will place additional burdens on the Social Security Administration.