[Congressional Record Volume 143, Number 6 (Thursday, January 23, 1997)]
[Senate]
[Pages S680-S681]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LOTT:
  S. 202. A bill to amend title II of the Social Security Act to 
eliminate the earnings test for individuals who have attained 
retirement age; to the Committee on Finance.


            THE OLDER AMERICANS FREEDOM TO WORK ACT OF 1997

  Mr. LOTT. Mr. President, I am reintroducing the Older Americans 
Freedom To Work Act and request my colleagues' support. This 
legislation

[[Page S681]]

would remove the limitation on the amount of outside income which 
Social Security beneficiaries, who have reached retirement age, may 
earn without incurring a reduction in benefits. It would abolish the 
onerous earnings best and allow senior citizens to work without being 
penalized.
  As you know, the Social Security retirement earnings test reduces 
benefits to persons between ages 65 and 69 who earn more than $13,500. 
These reductions amount to $1 in reduced benefits for every $3 in 
earnings above the limit.
  This limitation is unfair and poses a serious threat to the labor 
work force. Demographers tell us, that between the years 2000 and 2010, 
the baby boom generation will be in their retirement years. With fewer 
babies being born, this Nation is looking at a severe labor shortage. 
We need the skills, wisdom, and experience of our older workers, and 
this measure will encourage them to remain in the labor force.
  Elimination of the retirement earnings test begins the process of 
providing employment opportunities for older Americans without 
punishing them for their efforts. In the 1930's when the earned income 
limit was devised, encouraging senior citizens to leave the workplace 
was seen as a positive act, designed to increase job opportunities for 
younger workers. Today, with our shrinking labor force, such a policy 
is senseless.
  It is a pleasure to again sponsor legislation in the Senate to 
abolish the onerous retirement earnings test. I urge my colleagues to 
join me in supporting this vitally important legislation. I ask 
unanimous consent that the text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 202

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, 

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Older Americans' Freedom to 
     Work Act of 1997''.

     SEC. 2. ELIMINATION OF EARNINGS TEST FOR INDIVIDUALS WHO HAVE 
                   ATTAINED RETIREMENT AGE.

       Section 203 of the Social Security Act (42 U.S.C. 403) is 
     amended--
       (1) in subsection (c)(1), by striking ``the age of 
     seventy'' and inserting ``retirement age (as defined in 
     section 216(l))'';
       (2) in paragraphs (1)(A) and (2) of subsection (d), by 
     striking ``the age of seventy'' each place it appears and 
     inserting ``retirement age (as defined in section 216(l))'';
       (3) in subsection (f)(1)(B), by striking ``was age seventy 
     or over'' and inserting ``was at or above retirement age (as 
     defined in section 216(l))'';
       (4) in subsection (f)(3)--
       (A) by striking ``33\1/3\ percent'' and all that follows 
     through ``any other individual,'' and inserting ``50 percent 
     of such individual's earnings for such year in excess of the 
     product of the exempt amount as determined under paragraph 
     (8),''; and
       (B) by striking ``age 70'' and inserting ``retirement age 
     (as defined in section 216(l))'';
       (5) in subsection (h)(1)(A), by striking ``age 70'' each 
     place it appears and inserting ``retirement age (as defined 
     in section 216(l))''; and
       (6) in subsection (j)--
       (A) in the heading, by striking ``Age Seventy'' and 
     inserting ``Retirement Age''; and
       (B) by striking ``seventy years of age'' and inserting 
     ``having attained retirement age (as defined in section 
     216(l))''.

     SEC. 3. CONFORMING AMENDMENTS ELIMINATING THE SPECIAL EXEMPT 
                   AMOUNT FOR INDIVIDUALS WHO HAVE ATTAINED 
                   RETIREMENT AGE.

       (a) Uniform Exempt Amount.--Section 203(f)(8)(A) of the 
     Social Security Act (42 U.S.C. 403(f)(8)(A)) is amended by 
     striking ``the new exempt amounts (separately stated for 
     individuals described in subparagraph (D) and for other 
     individuals) which are to be applicable'' and inserting ``a 
     new exempt amount which shall be applicable''.
       (b) Conforming Amendments.--Section 203(f)(8)(B) of the 
     Social Security Act (42 U.S.C. 403(f)(8)(B)) is amended--
       (1) in the matter preceding clause (i), by striking 
     ``Except'' and all that follows through ``whichever'' and 
     inserting ``The exempt amount which is applicable for each 
     month of a particular taxable year shall be whichever'';
       (2) in clauses (i) and (ii), by striking ``corresponding'' 
     each place it appears; and
       (3) in the last sentence, by striking ``an exempt amount'' 
     and inserting ``the exempt amount''.
       (c) Repeal of Basis for Computation of Special Exempt 
     Amount.--Section 203(f)(8)(D) of the Social Security Act (42 
     U.S.C. (f)(8)(D)) is repealed.

     SEC. 4. ADDITIONAL CONFORMING AMENDMENTS.

       (a) Elimination of Redundant References to Retirement 
     Age.--Section 203 of the Social Security Act (42 U.S.C. 403) 
     is amended--
       (1) in subsection (c), in the last sentence, by striking 
     ``nor shall any deduction'' and all that follows and 
     inserting ``nor shall any deduction be made under this 
     subsection from any widow's or widower's insurance benefit if 
     the widow, surviving divorced wife, widower, or surviving 
     divorced husband involved became entitled to such benefit 
     prior to attaining age 60.''; and
       (2) in subsection (f)(1), by striking clause (D) and 
     inserting the following: ``(D) for which such individual is 
     entitled to widow's or widower's insurance benefits if such 
     individual became so entitled prior to attaining age 60,''.
       (b) Conforming Amendment to Provisions for Determining 
     Amount of Increase on Account of Delayed Retirement.--Section 
     202(w)(2)(B)(ii) of the Social Security Act (42 U.S.C. 
     402(w)(2)(B)(ii)) is amended--
       (1) by striking ``either''; and
       (2) by striking ``or suffered deductions under section 
     203(b) or 203(c) in amounts equal to the amount of such 
     benefit''.
       (c) Application to Blind Beneficiaries.--Section 
     223(d)(4)(A) of the Social Security Act (42 U.S.C. 
     423(d)(4)(A)) is amended by striking the second sentence.

     SEC. 5. EFFECTIVE DATE.

       The amendments made by this Act shall apply only with 
     respect to taxable years ending after December 31, 1996.
                                 ______