Summary

GAO has been studying the Notch issue for more than eight years and has testified before Congress many times. This testimony briefing covers the critical matters that GAO believes the Commission on the Social Security Notch Issue must deal with in addressing the Notch issue in 1994. In summary, GAO concludes that retirees in the notch group who claim an inequity are comparing themselves to a group of retirees who received benefits based on an overgenerous formula. In Congress chooses to pursue legislation, it should consider several factors, particularly the cost of financing any legislation.