II

106TH CONGRESS

1ST SESSION S. 1168

To eliminate the social security earnings test for individuals who have attained

retirement age, to protect and preserve the social security trust funds,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 27, 1999

Mr. MCCAIN introduced the following bill; which was read twice and referred

to the Committee on Finance

A BILL

To eliminate the social security earnings test for individuals

who have attained retirement age, to protect and preserve the social security trust funds, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 TITLE I—ELIMINATION OF SO4 CIAL SECURITY EARNINGS

5 TEST

6 SEC. 101. SHORT TITLE.

7 This title may be cited as the ‘‘Older Americans Free8 dom to Work Act’’.
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1 SEC. 102. ELIMINATION OF EARNINGS TEST FOR INDIVID2 UALS WHO HAVE ATTAINED RETIREMENT

3 AGE.

4 (a) IN GENERAL.—Section 203 of the Social Security

5 Act (42 U.S.C. 403) is amended—

6 (1) in subsection (c)(1), by striking ‘‘the age of

7 seventy’’ and inserting ‘‘retirement age (as defined

8 in section 216(l))’’;

9 (2) in paragraphs (1)(A) and (2) of subsection

10 (d), by striking ‘‘the age of seventy’’ each place it

11 appears and inserting ‘‘retirement age (as defined in

12 section 216(l))’’;

13 (3) in subsection (f)(1)(B), by striking ‘‘was

14 age seventy or over’’ and inserting ‘‘was at or above

15 retirement age (as defined in section 216(l))’’;

16 (4) in subsection (f)(3)—

(A) by striking ‘‘331 17 ⁄3 percent’’ and all

18 that follows through ‘‘any other individual,’’

19 and inserting ‘‘50 percent of such individual’s

20 earnings for such year in excess of the product

21 of the exempt amount as determined under

22 paragraph (8),’’; and

23 (B) by striking ‘‘age 70’’ and inserting

24 ‘‘retirement age (as defined in section 216(l))’’;
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1 (5) in subsection (h)(1)(A), by striking ‘‘age

2 70’’ each place it appears and inserting ‘‘retirement

3 age (as defined in section 216(l))’’; and

4 (6) in subsection (j)—

5 (A) in the heading, by striking ‘‘Age Sev6 enty’’ and inserting ‘‘Retirement Age’’; and

7 (B) by striking ‘‘seventy years of age’’ and

8 inserting ‘‘having attained retirement age (as

9 defined in section 216(l))’’.

10 (b) CONFORMING AMENDMENTS ELIMINATING THE

11 SPECIAL EXEMPT AMOUNT FOR INDIVIDUALS WHO HAVE

12 ATTAINED RETIREMENT AGE.—

13 (1) UNIFORM EXEMPT AMOUNT.—Section

14 203(f)(8)(A) of the Social Security Act (42 U.S.C.

15 403(f)(8)(A)) is amended by striking ‘‘the new ex16 empt amounts (separately stated for individuals de17 scribed in subparagraph (D) and for other individ18 uals) which are to be applicable’’ and inserting ‘‘a

19 new exempt amount which shall be applicable’’.

20 (2) CONFORMING AMENDMENTS.—Section

21 203(f)(8)(B) of the Social Security Act (42 U.S.C.

22 403(f)(8)(B)) is amended—

23 (A) in the matter preceding clause (i), by

24 striking ‘‘Except’’ and all that follows through

25 ‘‘whichever’’ and inserting ‘‘The exempt amount
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1 which is applicable for each month of a par2 ticular taxable year shall be whichever’’;

3 (B) in clauses (i) and (ii), by striking ‘‘cor4 responding’’ each place it appears; and

5 (C) in the last sentence, by striking ‘‘an

6 exempt amount’’ and inserting ‘‘the exempt

7 amount’’.

8 (3) REPEAL OF BASIS FOR COMPUTATION OF

9 SPECIAL EXEMPT AMOUNT.—Section 203(f)(8)(D) of

10 the Social Security Act (42 U.S.C. (f)(8)(D)) is re11 pealed.

12 (c) ADDITIONAL CONFORMING AMENDMENTS.—

13 (1) ELIMINATION OF REDUNDANT REFERENCES

14 TO RETIREMENT AGE.—Section 203 of the Social

15 Security Act (42 U.S.C. 403) is amended—

16 (A) in subsection (c), in the last sentence,

17 by striking ‘‘nor shall any deduction’’ and all

18 that follows and inserting ‘‘nor shall any deduc19 tion be made under this subsection from any

20 widow’s or widower’s insurance benefit if the

21 widow, surviving divorced wife, widower, or sur22 viving divorced husband involved became enti23 tled to such benefit prior to attaining age 60.’’;

24 and
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1 (B) in subsection (f)(1), by striking clause

2 (D) and inserting the following: ‘‘(D) for which

3 such individual is entitled to widow’s or wid4 ower’s insurance benefits if such individual be5 came so entitled prior to attaining age 60,’’.

6 (2) CONFORMING AMENDMENT TO PROVISIONS

7 FOR DETERMINING AMOUNT OF INCREASE ON AC8 COUNT OF DELAYED RETIREMENT.—Section

9 202(w)(2)(B)(ii) of the Social Security Act (42

10 U.S.C. 402(w)(2)(B)(ii)) is amended—

11 (A) by striking ‘‘either’’; and

12 (B) by striking ‘‘or suffered deductions

13 under section 203(b) or 203(c) in amounts

14 equal to the amount of such benefit’’.

15 (3) PROVISIONS RELATING TO EARNINGS

16 TAKEN INTO ACCOUNT IN DETERMINING SUBSTAN17 TIAL GAINFUL ACTIVITY OF BLIND INDIVIDUALS.—

18 The second sentence of section 223(d)(4)(A) of the

19 Social Security Act (42 U.S.C. 423(d)(4)(A)) is

20 amended by striking ‘‘if section 102 of the Senior

21 Citizens’ Right to Work Act of 1996 had not been

22 enacted’’ and inserting the following: ‘‘if the amend23 ments to section 203 made by section 102 of the

24 Senior Citizens’ Right to Work Act of 1996 and by
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1 the Senior Citizens’ Freedom to Work Act of 1999

2 had not been enacted’’.

3 (d) EFFECTIVE DATE.—The amendments and re4 peals made by this section shall apply with respect to tax5 able years ending after December 31, 1998.

6 TITLE II—PROTECTING AND

7 PRESERVING THE SOCIAL SE8 CURITY TRUST FUNDS

9 SEC. 201. SHORT TITLE.

10 This title may be cited as the ‘‘Protecting and Pre11 serving the Social Security Trust Funds Act’’.

12 SEC. 202. FINDINGS.

13 Congress finds that—

14 (1) the $69,246,000,000 unified budget surplus

15 achieved in fiscal year 1998 was entirely due to sur16 pluses generated by the social security trust funds

17 and the cumulative unified budget surpluses pro18 jected for subsequent fiscal years are primarily due

19 to surpluses generated by the social security trust

20 funds;

21 (2) Congress and the President should not use

22 the social security trust funds surpluses to balance

23 the budget or fund existing or new non-social secu24 rity programs;
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1 (3) all surpluses generated by the social secu2 rity trust funds must go towards saving and

3 strengthening the social security system; and

4 (4) at least 62 percent of the on-budget (non5 social security) surplus should be reserved and ap6 plied to the social security trust funds.

7 SEC. 203. PROTECTION OF THE SOCIAL SECURITY TRUST

8 FUNDS.

9 (a) PROTECTION BY CONGRESS.—

10 (1) REAFFIRMATION OF SUPPORT.—Congress

11 reaffirms its support for the provisions of section

12 13301 of the Budget Enforcement Act of 1990 that

13 provides that the receipts and disbursements of the

14 social security trust funds shall not be counted for

15 the purposes of the budget submitted by the Presi16 dent, the congressional budget, or the Balanced

17 Budget and Emergency Deficit Control Act of 1985.

18 (2) PROTECTION OF SOCIAL SECURITY BENE19 FITS.—Balances in the Federal Old-Age and Sur20 vivors Insurance Trust Fund and the Federal Dis21 ability Insurance Trust Fund shall be used solely for

22 paying social security benefit payments as promised

23 to be paid by law.
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1 (b) POINTS OF ORDER.—Section 301 of the Congres2 sional Budget Act of 1974 is amended by adding at the

3 end the following:

4 ‘‘(j) SOCIAL SECURITY POINT OF ORDER.—It shall

5 not be in order in the Senate to consider a concurrent

6 resolution on the budget, an amendment thereto, or a con7 ference report thereon that violates section 13301 of the

8 Budget Enforcement Act of 1990.

9 ‘‘(k) SOCIAL SECURITY SURPLUS PROTECTION

10 POINT OF ORDER.—It shall not be in order in the Senate

11 to consider a concurrent resolution on the budget, an

12 amendment thereto, or a conference report thereon that

13 would cause or increase an on-budget deficit for any fiscal

14 year.

15 ‘‘(l) SUBSEQUENT LEGISLATION.—

16 ‘‘(1) IN GENERAL.—It shall not be in order in

17 the Senate to consider any bill, joint resolution,

18 amendment, motion, or conference report if—

19 ‘‘(A) the enactment of the bill or resolution

20 as reported;

21 ‘‘(B) the adoption and enactment of that

22 amendment; or

23 ‘‘(C) the enactment of the bill or resolution

24 in the form recommended in the conference re25 port;
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1 would cause or increase an on-budget deficit for any

2 fiscal year.

3 ‘‘(2) EXCEPTION TO POINT OF ORDER.—This

4 subsection shall not apply to social security reform

5 legislation that would protect the social security sys6 tem from insolvency and preserve benefits as prom7 ised to beneficiaries.’’.

8 (c) SUPERMAJORITY WAIVER AND APPEAL.—Sub9 sections (c)(1) and (d)(2) of section 904 of the Congres10 sional Budget Act of 1974 are amended by striking

11 ‘‘305(b)(2),’’ and inserting ‘‘301(j), 301(k), 301(l),

12 305(b)(2)’’.

13 SEC. 204. SEPARATE BUDGET FOR SOCIAL SECURITY.

14 (a) EXCLUSION.—The outlays and receipts of the so15 cial security program under title II of the Social Security

16 Act, including the Federal Old-Age and Survivors Insur17 ance Trust Fund and the Federal Disability Insurance

18 Trust Fund and the related provisions of the Internal Rev19 enue Code of 1986, shall be excluded from—

20 (1) any official documents by Federal agencies

21 regarding the surplus or deficit totals of the budget

22 of the Federal Government as submitted by the

23 President or of the surplus or deficit totals of the

24 congressional budget; and
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1 (2) any description or reference in any official

2 publication or material issued by any other agency

3 or instrumentality of the Federal Government.

4 (b) SEPARATE BUDGET.—The outlays and receipts of

5 the social security program under title II of the Social Se6 curity Act, including the Federal Old-Age and Survivors

7 Insurance Trust Fund and the Federal Disability Insur8 ance Trust Fund and the related provisions of the Internal

9 Revenue Code of 1986, shall be submitted as a separate

10 budget.

11 SEC. 205. PRESIDENT’S BUDGET.

12 Section 1105(f) of title 31, United States Code, is

13 amended by striking ‘‘in a manner consistent’’ and insert14 ing ‘‘in compliance’’.

15 TITLE III—SAVING SOCIAL

16 SECURITY FIRST

17 SEC. 301. DESIGNATION OF ON-BUDGET SURPLUS.

18 (a) IN GENERAL.—Notwithstanding any other provi19 sion of law, not less than the amount referred to in sub20 section (b) for a fiscal year shall be reserved for and ap21 plied to the social security trust funds for that fiscal year

22 in addition to the social security trust fund surpluses.

23 (b) AMOUNT RESERVED.—The amount referred to in

24 this subsection is—

25 (1) for fiscal year 2001, $6,820,000,000;
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1 (2) for fiscal year 2002, $36,580,000,000;

2 (3) for fiscal year 2003, $31,620,000,000;

3 (4) for fiscal year 2004, $42,160,000,000;

4 (5) for fiscal year 2005, $48,980,000,000;

5 (6) for fiscal year 2006, $71,920,000,000;

6 (7) for fiscal year 2007, $83,080,000,000;

7 (8) for fiscal year 2008, $90,520,000,000; and

8 (9) for fiscal year 2009, $102,300,000,000.

9 SEC. 302. SENSE OF THE SENATE ON DEDICATING ADDI10 TIONAL SURPLUS AMOUNTS.

11 It is the sense of the Senate if the budget surplus

12 in future years is greater than the currently projected sur13 plus, serious consideration should be given to directing

14 more of the surplus to strengthening the social security

15 trust funds.

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