Who are the Notch Babies? Why Does It Matter?

Notch babies and all the issues that surround the term are still a part of an issue in American politics that never quite seems to go away. It is also part of one of the most confusing issues that surrounds the American Social Security system and the fact that not everyone even agrees that the issue is even a valid one makes it even more confusing.

The US Social Security System Begins

Throughout history people have faced economic insecurity, especially when they reach an age that no longer allows them to work productively in the way that they did when they were younger. The US Social Security system helps lessen some of that economic security for the elderly and some younger disabled persons as well as provide benefits for the surviving loved ones of a taxpayer who has died.

The Social Security system in America is younger than some people (especially younger generations) might actually realize. In fact, it was not until 1935 that the Social Security Act was signed into law and some real provision was made to try to help protect retired persons and other eligible people from the poverty that had marked the late 1920’s and 1930s.

As the Social Security system exists in the 21st century, any taxpayer who has paid enough in social insurance contributions over the course of their working life is entitled to receive social security benefits once they reach official retirement age or become legally classified as disabled and unable to work at any age. It can sometimes be a struggle for the people in the later categories to get their payments started but fortunately there are lawyers like those at www.socialsecuritylawcenter.info who can help.

The social security system is not income level based. earning over a certain amount does not preclude anyone from receiving their proper social security benefits on reaching retirement age. The idea behind this is that everyone is rewarded for a lifetime of work and paying into the “system”.

Who are the Notch Babies?

The generally agreed definition of a notch baby is an American citizen who was born between 1917 and 1921, people who are, in 2017, aged between 100 and 95, which means that there are not too many of them left, although there actually more than you might imagine.

The notch baby issue arises out of a policy change that was made many years ago that may have resulted in this small group of people receiving lower social security benefits for some time than other people once they retired. Whether or not that is the case is still hotly debated, even though there are fewer than 3 million notch babies still alive to actually debate the issue themselves.

What the Social Security Administration says About Notch Babies

The Social Security administration is more than aware of the notch babies issue and the controversy that surrounds it.

According the SSA the notch issue is real, but it is one that was dealt with a long time ago, in 1977 to be precise. The notch, the SSA says, was caused by a flawed method of benefit calculation that meant that people born earlier than the notch babies — born between 1910 and 1916 received an unintended windfall of extra benefits when they retired.

In 1977 the US Congress set out to try and put the errors straight. They managed to do so (they believed) but so that no one would suffer unduly by having to endure a sudden drop in benefits they factored in a transition period for changing benefit levels.

In doing so the COLA (cost of living allowance) for those born in the notch baby years could be calculated in two different ways and that is where Notch Baby activists believe that some of the Notch Babies were “cheated” out of their rightful full benefit amounts.

Notch Baby Scams

Now that there are very few notch babies left the issue is dying down but there are still enough people left that qualify as Notch Babies (or as the surviving beneficiary of a Notch Baby who might receive their Social Security benefits, usually a spouse) that the issue is still not quite over.

The one thing that has disturbed many people over the last few decades were the number of notch baby scams that sprang up around the issue. There are always going to be one or two bad guys willing to exploit any issue they can for their own financial gain and the Notch Baby issue is no exception.

Most of these scams involved sending letters to Notch Babies — or to their possible beneficiaries — asking them either to contribute to a campaign to change the lawmaker’ minds which does not exist (although there are legitimate ones) or to pay a fee to “receive” the funds that they may have lost as Notch Babies.

Soon the Notch Baby issue will fade into American history, simply because there will be no Notch Babies left. Until then it may still continue to be a source of debate as well as a possible source of income for unscrupulous people.