Social Security Earnings Test Amendments of 1993

Summary: Social Security Earnings Test Amendments of 1993 - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act to remove the limitation on the amount of outside income which beneficiaries who have attained retirement age may earn without incurring a reduction in benefits. 
Sets a monthly limit on the amount other OASDI beneficiaries may earn in a taxable year ending in 1994 before incurring a benefit reduction.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Earnings Test 
Amendments of 1993''.

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

    (a) In General.--Section 203 of the Social Security Act (42 U.S.C. 
403) is amended--
            (1) in paragraph (1) of subsection (c) and paragraphs 
        (1)(A) and (2) of subsection (d), by striking ``the age of 
        seventy'' and inserting ``retirement age (as defined in section 
        216(1))'';
            (2) 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(1))'';
            (3) in subsection (f)(3), 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 by striking ``age 70'' 
        and inserting ``(retirement age (as defined in section 
        216(1))'';
            (4) in subsection (h)(1)(A), by striking ``age 70'' each 
        place it appears and inserting ``(retirement age (as defined in 
        section 216(1))''; and
            (5) in subsection (j), by striking ``Age Seventy'' in the 
        heading and inserting ``Retirement Age'', and by striking 
        ``seventy years of age'' and inserting ``having attained 
        retirement age (as defined in section 216(1))''.
    (b) Conforming Amendments.--
            (1) Elimination of redundant references to retirement 
        age.--Section 203 of the Social Security Act (42 U.S.C. 403) is 
        amended--
                    (A) in the last sentence of subsection (c), 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
                    (B) 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,''.
            (2) Conforming amendment to provisions for determining 
        amount of increase on account of delayed retirement.--Section 
        202(w)(2)(B)(ii) of such Act (42 U.S.C. 402(w)(2)(B)(ii)) is 
        amended--
                    (A) by striking ``either''; and
                    (B) by striking ``or suffered deductions under 
                section 203(b) or 203(c) in amounts equal to the amount 
                of such benefit''.

SEC. 3. INCREASE IN EXEMPT AMOUNT UNDER EARNINGS TEST FOR BENEFICIARIES 
              UNDER RETIREMENT AGE.

    (a) In General.--Section 203(f)(8)(D) of the Social Security Act 
(42 U.S.C. 403(f)(8)(D)) is amended to read as follows:
    ``(D)(i) Notwithstanding any other provision of this subsection, 
the exempt amount which is applicable to an individual shall be $829.16 
for each month of the individual's taxable year ending after 1993 and 
before 1995.
    ``(ii) For purposes of subparagraph (B)(ii)(II), the increase in 
the exempt amount provided under clause (i) shall be deemed to have 
resulted from a determination which shall be deemed to have been made 
under subparagraph (A) in 1993.''.
    (b) Conforming Amendments.--
            (1) Section 203(f) of such Act (42 U.S.C. 403(f)) is 
        further amended--
                    (A) in paragraphs (1), (3), and (4)(B), by striking 
                ``the applicable exempt amount'' and inserting ``the 
                exempt amount'';
                    (B) in paragraph (8)(A), 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 effective''; and
                    (C) in paragraph (8)(B)--
                            (i) by striking ``the exempt amount'' and 
                        all that follows through ``whichever'' in the 
                        matter preceding clause (i) and inserting ``the 
                        exempt amount for each month of a particular 
                        taxable year shall be whichever'';
                            (ii) by striking ``corresponding'' in 
                        clause (i); and
                            (iii) by striking ``an exempt amount'' in 
                        the last sentence and inserting ``the exempt 
                        amount''.
            (2) Section 203(h)(1)(A) of such Act (42 U.S.C. 
        403(h)(1)(A)) is amended by striking ``the applicable exempt 
        amount'' and inserting ``the exempt amount''.
            (3) Section 223(d)(4) of such Act (42 U.S.C. 423(d)(4)) is 
        amended by striking ``which is applicable to individuals 
        described in subparagraph (D) thereof'' and inserting ``which 
        would be applicable to individuals described in subparagraph 
        (D) thereof as in effect on December 31, 1993, but for the 
        amendments made by the Social Security Earnings Test Amendments 
        of 1993''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to taxable 
years beginning after December 31, 1993.