Senior Citizens' Freedom to Work Act of 1998

Summary: Senior Citizens' Freedom to Work Act of 1998 - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act to repeal the limitation on the amount of outside income which beneficiaries who have attained retirement age may earn (earnings test) without incurring a reduction in benefits.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Senior Citizens' Freedom to Work Act 
of 1998''.

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) Provisions Relating to Earnings Taken Into Account in 
Determining Substantial Gainful Activity of Blind Individuals.--The 
second sentence of section 223(d)(4) of such Act (42 U.S.C. 423(d)(4)) 
is amended by striking ``if section 102 of the Senior Citizens' Right 
to Work Act of 1996 had not been enacted'' and inserting the following: 
``if the amendments to section 203 made by section 102 of the Senior 
Citizens' Right to Work Act of 1996 and by the Senior Citizens' Freedom 
to Work Act of 1998 had not been enacted''.

SEC. 5. EFFECTIVE DATE.

    The amendments and repeals made by this Act shall apply with 
respect to taxable years ending after December 31, 1997.