To amend title II of the Social Security Act to phase out the earnings test over a 5-year period for individuals who have attained age 65, and for other purposes.

Summary: Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to increase for each year from 1994 through 1998 the amount of outside income which beneficiaries who have attained retirement age may earn without incurring a reduction in benefits.  Removes such income limitation thereafter.  Accelerates the effective dates of increases in the delayed retirement credit rate for individuals who work beyond retirement age.

SECTION 1. LIBERALIZATION OF EARNINGS TEST FOR INDIVIDUALS WHO HAVE 
              ATTAINED RETIREMENT AGE.

    (a) In General.--Effective with respect to taxable years ending 
after 1993, subparagraph (D) of section 203(f)(8) of the Social 
Security Act (42 U.S.C. 403(f)(8)) is amended to read as follows:
            ``(D) Notwithstanding any other provision of this 
        subsection, the exempt amount which is applicable to an 
        individual who has attained retirement age (as defined in 
        section 216(l)) before the close of the taxable year involved--
                    ``(i) shall be $1,130 for each month of any taxable 
                year ending after 1993 and before 1995,
                    ``(ii) shall be $1,380 for each month of any 
                taxable year ending after 1994 and before 1996,
                    ``(iii) shall be $1,630 for each month of any 
                taxable year ending after 1995 and before 1997,
                    ``(iv) shall be $1,880 for each month of any 
                taxable year ending after 1996 and before 1998, and
                    ``(v) shall be $2,130 for each month of any taxable 
                year ending after 1997 and before 1999.''.
    (b) Conforming Amendment.--The second sentence of 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 who have attained 
retirement age (as defined in section 216(l)) without regard to any 
increase in such amount resulting from a law enacted in 1993''.

SEC. 2. REPEAL OF EARNINGS TEST IN 1999 FOR INDIVIDUALS WHO HAVE 
              ATTAINED RETIREMENT AGE.

    Effective with respect to taxable years ending after 1998--
            (1) clause (B) in the third sentence of section 203(f)(1) 
        of the Social Security Act (42 U.S.C. 403(f)(1)) is amended to 
        read as follows: ``(B) in any taxable year before the close of 
        which such individual has attained retirement age (as defined 
        in section 216(l)),''; and
            (2) the first sentence of section 203(f)(3) of such Act (42 
        U.S.C. 403(f)(3)) is amended to read as follows: ``For purposes 
        of paragraph (1) and subsection (h), an individual's excess 
        earnings for a taxable year shall be 50 percent of his earnings 
        for such year in excess of the product of (A) the applicable 
        exempt amount as determined under paragraph (8), and (B) the 
        number of months in such year; except that no part of the 
        earnings of an individual for any taxable year shall constitute 
        excess earnings for such purposes if the individual has 
        attained retirement age (as defined in section 216(l)) before 
        the close of that year.''.

SEC. 3. ACCELERATION OF 8 PERCENT DELAYED RETIREMENT CREDIT.

    Effective with respect to taxable years ending after 1998, 
paragraph (6) of section 202(w) of the Social Security Act (42 U.S.C. 
402(w)(6)) is amended--
            (1) by striking ``2005'' in subparagraph (C) and inserting 
        ``1993''; and
            (2) by striking ``2004'' in subparagraph (D) and inserting 
        ``1992''.

SEC. 4. CONFORMING AND RELATED AMENDMENTS.

    Effective with respect to taxable years ending after 1991--
            (1) section 203(c)(1) of the Social Security Act (42 U.S.C. 
        403(c)(1)) is amended by striking ``is under the age of 
        seventy'' and inserting ``is under retirement age (as defined 
        in section 216(l))'';
            (2) paragraphs (1)(A) and (2) of section 203(d) of such Act 
        (42 U.S.C. 403(d)(1)(A), (2)) are each amended by striking 
        ``under the age of seventy'' and inserting ``under retirement 
        age (as defined in section 216(l))'';
            (3) subparagraph (D) of section 203(f)(5) of such Act (42 
        U.S.C. 403(f)(5)(D)) is amended--
                    (A) by striking ``(D) In the case of'' and all that 
                follows down through ``(ii) an individual'' and 
                inserting the following:
            ``(D) In the case of an individual'';
                    (B) by striking ``became entitled to such 
                benefits'' and all that follows and inserting ``became 
                entitled to such benefits, there shall be excluded from 
                gross income any such other income.''; and
                    (C) by shifting such subparagraph as so amended to 
                the left to the extent necessary to align its left 
                margin with that of subparagraphs (A) through (C) of 
                such section;
            (4) section 203(f)(8)(A) of such 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 ``the new exempt amount which is to be applicable'';
            (5) section 203(f)(8)(B) of such Act (42 U.S.C. 
        403(f)(8)(B)) is amended--
                    (A) by striking all that precedes clause (i) and 
                inserting the following:
            ``(B) The exempt amount which is applicable for each month 
        of a particular taxable year shall be whichever of the 
        following is the larger--'';
                    (B) by striking ``corresponding'' in clause (i); 
                and
                    (C) by striking ``an exempt amount'' in the matter 
                following clause (ii) and inserting ``the exempt 
                amount'';
            (6) section 203(f)(8)(D) of such Act (42 U.S.C. 
        403(f)(8)(D)) (as amended by section 1 of this Act) is 
        repealed;
            (7) section 203(f)(9) of such Act (42 U.S.C. 403(f)(9)) is 
        repealed;
            (8) section 203(h)(1)(A) of such Act (42 U.S.C. 
        403(h)(1)(A)) is amended by striking ``age 70'' each place it 
        appears and inserting ``retirement age (as defined in section 
        216(l))'';
            (9) section 203(j) of such Act (42 U.S.C. 403(j)) is 
        amended to read as follows:

                     ``Attainment of Retirement Age

    ``(j) For purposes of this section--
            ``(1) an individual shall be considered as having attained 
        retirement age (as defined in section 216(l)) during the entire 
        month in which he attains such age; and
            ``(2) the term `retirement age (as defined in section 
        216(l))', with respect to any individual entitled to monthly 
        insurance benefits under section 202, means the retirement age 
        (as so defined) which is applicable in the case of old-age 
        insurance benefits, regardless of whether or not the particular 
        benefits to which the individual is entitled (or the only such 
        benefits) are old-age insurance benefits.''; and
            (10) the second sentence of section 223(d)(4) of such Act 
        (42 U.S.C. 423(d)(4)) (as amended by section 1(b) of this Act) 
        is further amended by striking ``without regard to any increase 
        in such amount resulting from a law enacted in 1993'' and 
        inserting ``but for the liberalization and repeal of the 
        earnings test for such individuals in 1993''.