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Barbara Quirk: Beware of notch baby scam

Barbara Quirk  —  5/13/2008 8:11 am

These guys are not exactly snake oil salesmen, but their tactics are verifiably shady. They prey on vulnerable older Americans with misinformation and solicitation of money. They also misrepresent the positions of government leaders while promising to influence hikes in Social Security payments.

Congresswoman Tammy Baldwin's office has recently received a number of calls from Social Security beneficiaries who believe they are not receiving fair Social Security payment. These people have been asked through mailings to send money to organizations that are working to change the law. Often, these mailings mention Congresswoman Baldwin and suggest that she supports this fundraising effort.

"This is not the case," says Baldwin.

In a press release from Baldwin's office, she cautions seniors to beware of solicitations that ask them to send money to change legislation to increase their Social Security benefits. The primary targets of this solicitation are the so-called "notch babies," beneficiaries born from 1917 to 1921.

"The notch issue resulted from legislative changes to Social Security during the 1970s that first established cost of living adjustments (COLAs) for Social Security benefits, but used a flawed formula that caused benefits to rise substantially faster than inflation," Baldwin explains. "Congress corrected the error in 1977, but beneficiaries born from 1910 to 1916 were calculated using the flawed formula, giving them unintended windfall benefits."

The notch babies, born from 1917 to 1921 (now ages 87 to 91), became eligible for benefits during the period in which the corrected formula was phased in, so their benefits are lower than those who received the windfall benefits. The term "notch" comes from graphs of benefit levels over time; there is a v-shaped dip for these individuals, occurring during the transition period to the corrected new formula.

Congresswoman Baldwin, who has been a consistent champion of older adults, says, "I want to make it perfectly clear that every citizen is welcome to contact me about legislation or federal issues that concern them without cost and without the need for a middleman. I'm aware of solicitations that, while not illegal, are certainly misleading. 'Notch babies,' in particular, are vulnerable to fundraising schemes that take advantage of their unique status under complex law."

It is complex, and many legislative attempts have been made over the years to give notch babies additional benefits, but none has been successful. Bills are introduced each session, according to Baldwin, but no legislative action is expected. A congressionally mandated commission studied the issue and concluded in its 1994 report that benefits paid to those in the "notch" years are equitable and that no remedial legislation is in order.

Baldwin advises, "While there are some legitimate advocacy organizations that use contributions judiciously, I strongly urge my constituents to research any organization that asks them to send money to lobby on this, or any issue. I suggest that anyone who is approached by these organizations ask if most of their donations go toward lobbying efforts or toward their own administrative costs, salaries, and other expenses.

"My constituents can always advise me of their opinions simply by calling my office, writing, or e-mailing me."

Congresswoman Tammy Baldwin can be reached at 10 E. Doty St. No. 405, Madison, WI 53703. Phone: 608-258-9800.

Older adults may receive hundreds of requests a year for donations, and some of the gimmicks are pretty convincing. If eyesight or memory is impaired, the older person may contribute to the same appeal several times in the same month. Checking that person's bank statement can signal that more oversight may be in order.

Please, if you notice your elder relative is sending frequent donations to charitable or political appeals, pay attention. The authenticity of these organizations can be verified through the American Institute of Philanthropy Charity Guide, www.charitywatch.org. Your local public library can assist you.

Barbara Quirk is a Madison geriatric nurse practitioner.

Barbara Quirk  —  5/13/2008 8:11 am