Older Workers' Earnings Protection Act of 1993

Summary: Older Workers' Earnings Protection Act of 1993 - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to increase the amount of outside income which beneficiaries who have attained retirement age may earn during 1995 through 1999 without incurring a reduction in benefits. Repeals such income limitation in the year 2000.  Accelerates the effective dates of increases in the delayed retirement credit rate for individuals who work beyond retirement age.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Older Workers' Earnings Protection 
Act of 1993''.

SEC. 2. LIBERALIZATION OF EARNINGS TEST OVER THE PERIOD 1995-1999 FOR 
              INDIVIDUALS WHO HAVE ATTAINED RETIREMENT AGE.

    (a) In General.--Effective with respect to taxable years ending 
after 1994, subparagraph (D) of section 203(f)(8) of the Social 
Security Act is amended to read as follows:
            ``(D) Notwithstanding any other provision of this 
        subsection, the exempt amount for a taxable year ending in a 
        calendar year after 1994 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 shall be an 
        amount equal to the exempt amount which was applicable to 
        individuals described in this subparagraph for taxable years 
        ending in the preceding calendar year, plus $3,000.''.
    (b) Conforming Amendment.--The second sentence of section 223(d)(4) 
of such Act 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)) before the close of the taxable year involved if the 
amendments made by the Social Security Earnings Test Repeal Act of 1993 
had not been enacted.''.

SEC. 3. REPEAL OF EARNINGS TEST IN THE YEAR 2000 FOR INDIVIDUALS WHO 
              HAVE ATTAINED RETIREMENT AGE.

    Effective with respect to taxable years ending after 1999--
            (1) clause (B) in the third sentence of section 203(f)(1) 
        of the Social Security Act is amended by striking ``age 
        seventy'' and inserting ``retirement age (as defined in section 
        216(l))''; and
            (2) section 203(f)(3) of such Act is amended--
                    (A) by striking ``33\1/3\ percent'' and all that 
                follows through ``multiplied by the number of months in 
                such year'' and inserting ``50 percent of his earnings 
                for such year in excess of the product derived by 
                multiplying the applicable exempt amount as determined 
                under paragraph (8) by the number of months in such 
                year'', and
                    (B) by striking ``age 70'' and inserting 
                ``retirement age (as defined in section 216(l))''.

SEC. 4. CONFORMING AND RELATED AMENDMENTS.

    Effective with respect to taxable years ending after 1999--
            (1) section 203(c)(1) of the Social Security Act is amended 
        by striking ``is under the age of seventy'' and inserting ``is 
        under retirement age (as defined in section 216(l))'';
            (2) the last sentence of subsection (c) of section 203 of 
        such Act is amended 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.'';
            (3) paragraphs (1)(A) and (2) of section 203(d) of such Act 
        are each amended by striking ``under the age of seventy'' and 
        inserting ``under retirement age (as defined in section 
        216(l))'';
            (4) section 203(f)(1) of such Act is amended 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, or'';
            (5) subparagraph (D) of section 203(f)(5) of such Act 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''; and
                    (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.'';
            (6) section 203(f)(8)(A) of such Act 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'';
            (7) section 203(f)(8)(B) of such Act 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'';
            (8) section 203(f)(8)(D) of such Act (as amended by section 
        2(a) of this Act) is repealed;
            (9) section 203(f)(9) of such Act is repealed;
            (10) section 203(h)(1)(A) of such Act is amended by 
        striking ``age 70'' each place it appears and inserting 
        ``retirement age (as defined in section 216(l))'';
            (11) section 203(j) of such Act 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
            (12) section 202(w)(2)(B)(ii) of such Act 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. 5. ACCELERATION OF 8 PERCENT DELAYED RETIREMENT CREDIT.

    Paragraph (6) of section 202(w) of the Social Security Act is 
amended--
            (1) by striking ``2005'' in subparagraph (C) and inserting 
        ``1995''; and
            (2) by striking ``2004'' in subparagraph (D) and inserting 
        ``1994''.