I

104TH CONGRESS

1ST SESSION H. R. 201

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 retirement

age, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 4, 1995

Mr. COBLE introduced the following bill; which was referred to the Committee

on Ways and Means

A BILL

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 retirement age, 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 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Older Workers’ Earn5 ings Protection Act of 1995’’.
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1 SEC. 2. LIBERALIZATION OF EARNINGS TEST OVER THE PE2 RIOD 1997–2001 FOR INDIVIDUALS WHO HAVE

3 ATTAINED RETIREMENT AGE.

4 (a) IN GENERAL.—Effective with respect to taxable

5 years ending after 1996, subparagraph (D) of section

6 203(f)(8) of the Social Security Act is amended to read

7 as follows:

8 ‘‘(D) Notwithstanding any other provision of

9 this subsection, the exempt amount for a taxable

10 year ending in a calendar year after 1996 which is

11 applicable to an individual who has attained retire12 ment age (as defined in section 216(l)) before the

13 close of the taxable year involved shall be an amount

14 equal to the exempt amount which was applicable to

15 individuals described in this subparagraph for tax16 able years ending in the preceding calendar year,

17 plus $3,000.’’.

18 (b) CONFORMING AMENDMENT.—The second sen19 tence of section 223(d)(4)(A) of such Act is amended by

20 striking ‘‘which is applicable to individuals described in

21 subparagraph (D) thereof’’ and inserting ‘‘which would be

22 applicable to individuals who have attained retirement age

23 (as defined in section 216(l)) before the close of the tax24 able year involved if the amendments made by the Social

25 Security Earnings Test Repeal Act of 1995 had not been

26 enacted.’’.
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1 SEC. 3. REPEAL OF EARNINGS TEST IN THE YEAR 2002 FOR

2 INDIVIDUALS WHO HAVE ATTAINED RETIRE3 MENT AGE.

4 Effective with respect to taxable years ending after

5 2001—

6 (1) clause (B) in the third sentence of section

7 203(f)(1) of the Social Security Act is amended by

8 striking ‘‘age seventy’’ and inserting ‘‘retirement age

9 (as defined in section 216(l))’’; and

10 (2) section 203(f)(3) of such Act is amended—

(A) by striking ‘‘331 11 ⁄3 percent’’ and all

12 that follows through ‘‘multiplied by the number

13 of months in such year’’ and inserting ‘‘50 per14 cent of his earnings for such year in excess of

15 the product derived by multiplying the applica16 ble exempt amount as determined under para17 graph (8) by the number of months in such

18 year’’, and

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

20 ‘‘retirement age (as defined in section 216(l))’’.

21 SEC. 4. CONFORMING AND RELATED AMENDMENTS.

22 Effective with respect to taxable years ending after

23 2001—

24 (1) section 203(c)(1) of the Social Security Act

25 is amended by striking ‘‘is under the age of seventy’’
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1 and inserting ‘‘is under retirement age (as defined

2 in section 216(l))’’;

3 (2) the last sentence of subsection (c) of section

4 203 of such Act is amended by striking ‘‘nor shall

5 any deduction’’ and all that follows and inserting

6 ‘‘nor shall any deduction be made under this sub7 section from any widow’s or widower’s insurance

8 benefit if the widow, surviving divorced wife, wid9 ower, or surviving divorced husband involved became

10 entitled to such benefit prior to attaining age 60.’’;

11 (3) paragraphs (1)(A) and (2) of section 203(d)

12 of such Act are each amended by striking ‘‘under

13 the age of seventy’’ and inserting ‘‘under retirement

14 age (as defined in section 216(l))’’;

15 (4) section 203(f)(1) of such Act is amended by

16 striking clause (D) and inserting the following: ‘‘(D)

17 for which such individual is entitled to widow’s or

18 widower’s insurance benefits if such individual be19 came so entitled prior to attaining age 60, or’’;

20 (5) subparagraph (D) of section 203(f)(5) of

21 such Act is amended—

22 (A) by striking ‘‘(D) In the case of’’ and

23 all that follows down through ‘‘(ii) an individ24 ual’’ and inserting the following:

25 ‘‘(D) In the case of an individual’’; and
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1 (B) by striking ‘‘became entitled to such

2 benefits’’ and all that follows and inserting ‘‘be3 came entitled to such benefits, there shall be ex4 cluded from gross income any such other in5 come.’’;

6 (6) section 203(f)(8)(A) of such Act is amended

7 by striking ‘‘the new exempt amounts (separately

8 stated for individuals described in subparagraph (D)

9 and for other individuals) which are to be applica10 ble’’ and inserting ‘‘the new exempt amount which

11 is to be applicable’’;

12 (7) section 203(f)(8)(B) of such Act is amend13 ed—

14 (A) by striking all that precedes clause (i)

15 and inserting the following:

16 ‘‘(B) The exempt amount which is applicable

17 for each month of a particular taxable year shall be

18 whichever of the following is the larger—’’;

19 (B) by striking ‘‘corresponding’’ in clause

20 (i); and

21 (C) by striking ‘‘an exempt amount’’ in the

22 matter following clause (ii) and inserting ‘‘the

23 exempt amount’’;

24 (8) section 203(f)(8)(D) of such Act (as amend25 ed by section 2(a) of this Act) is repealed;
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1 (9) section 203(f)(9) of such Act is repealed;

2 (10) section 203(h)(1)(A) of such Act is amend3 ed by striking ‘‘age 70’’ each place it appears and

4 inserting ‘‘retirement age (as defined in section

5 216(l))’’;

6 (11) section 203(j) of such Act is amended to

7 read as follows:

8 ‘‘Attainment of Retirement Age

9 ‘‘(j) For purposes of this section—

10 ‘‘(1) an individual shall be considered as having

11 attained retirement age (as defined in section

12 216(l)) during the entire month in which he attains

13 such age; and

14 ‘‘(2) the term ‘retirement age (as defined in

15 section 216(l))’, with respect to any individual enti16 tled to monthly insurance benefits under section

17 202, means the retirement age (as so defined) which

18 is applicable in the case of old-age insurance bene19 fits, regardless of whether or not the particular ben20 efits to which the individual is entitled (or the only

21 such benefits) are old-age insurance benefits.’’; and

22 (12) section 202(w)(2)(B)(ii) of such Act is

23 amended—

24 (A) by striking ‘‘either’’; and
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1 (B) by striking ‘‘or suffered deductions

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

3 equal to the amount of such benefit’’.

4 SEC. 5. ACCELERATION OF 8 PERCENT DELAYED RETIRE5 MENT CREDIT.

6 Paragraph (6) of section 202(w) of the Social Secu7 rity Act is amended—

8 (1) by striking ‘‘2005’’ in subparagraph (C)

9 and inserting ‘‘1997’’; and

10 (2) by striking ‘‘2004’’ in subparagraph (D)

11 and inserting ‘‘1996’’.

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