II

104TH CONGRESS

1ST SESSION S. 252

To amend title II of the Social Security Act to eliminate the earnings

test for individuals who have attained retirement age.

IN THE SENATE OF THE UNITED STATES

JANUARY 20 (legislative day, JANUARY 10), 1995

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

the Committee on Finance

A BILL

To amend title II of the Social Security Act to eliminate

the earnings test for individuals who have attained retirement age.

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 Americans’

5 Freedom to Work Act of 1995’’.

6 SEC. 2. ELIMINATION OF EARNINGS TEST FOR INDIVID7 UALS WHO HAVE ATTAINED RETIREMENT

8 AGE.

9 Section 203 of the Social Security Act (42 U.S.C.

10 403) is amended—
2

•S 252 IS

1 (1) in paragraph (1) of subsection (c) and para2 graphs (1)(A) and (2) of subsection (d), by striking

3 ‘‘the age of seventy’’ and inserting ‘‘retirement age

4 (as defined in section 216(l))’’;

5 (2) in subsection (f)(1)(B), by striking ‘‘was

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

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

(3) in subsection (f)(3), by striking ‘‘331 8 ⁄3 per9 cent’’ and all that follows through ‘‘any other indi10 vidual,’’ and inserting ‘‘50 percent of such individ11 ual’s earnings for such year in excess of the product

12 of the exempt amount as determined under para13 graph (8),’’ and by striking ‘‘age 70’’ and inserting

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

15 (4) in subsection (h)(1)(A), by striking ‘‘age

16 70’’ each place it appears and inserting ‘‘retirement

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

18 (5) in subsection (j), by striking ‘‘Age Seventy’’

19 in the heading and inserting ‘‘Retirement Age’’, and

20 by striking ‘‘seventy years of age’’ and inserting

21 ‘‘having attained retirement age (as defined in sec22 tion 216(l))’’.
3

•S 252 IS

1 SEC. 3. CONFORMING AMENDMENTS ELIMINATING THE

2 SPECIAL EXEMPT AMOUNT FOR INDIVIDUALS

3 WHO HAVE ATTAINED RETIREMENT AGE.

4 (a) UNIFORM EXEMPT AMOUNT.—Section

5 203(f)(8)(A) of the Social Security Act (42 U.S.C.

6 403(f)(8)(A)) is amended by striking ‘‘the new exempt

7 amounts (separately stated for individuals described in

8 subparagraph (D) and for other individuals) which are to

9 be applicable’’ and inserting ‘‘a new exempt amount which

10 shall be applicable’’.

11 (b) CONFORMING AMENDMENTS.—Section

12 203(f)(8)(B) of such Act (42 U.S.C. 403(f)(8)(B)) is

13 amended—

14 (1) in the matter preceding clause (i), by strik15 ing ‘‘Except’’ and all that follows through ‘‘which16 ever’’ and inserting ‘‘The exempt amount which is

17 applicable for each month of a particular taxable

18 year shall be whichever’’;

19 (2) in clause (i), by striking ‘‘corresponding’’;

20 and

21 (3) in the last sentence, by striking ‘‘an exempt

22 amount’’ and inserting ‘‘the exempt amount’’.

23 (c) REPEAL OF BASIS FOR COMPUTATION OF SPE24 CIAL EXEMPT AMOUNT.—Section 203(f)(8)(D) of such

25 Act (42 U.S.C. (f)(8)(D)) is repealed.
4

•S 252 IS

1 SEC. 4. ADDITIONAL CONFORMING AMENDMENTS.

2 (a) ELIMINATION OF REDUNDANT REFERENCES TO

3 RETIREMENT AGE.—Section 203 of the Social Security

4 Act (42 U.S.C. 403) is amended—

5 (1) in the last sentence of subsection (c), by

6 striking ‘‘nor shall any deduction’’ and all that fol7 lows and inserting ‘‘nor shall any deduction be made

8 under this subsection from any widow’s or widower’s

9 insurance benefit if the widow, surviving divorced

10 wife, widower, or surviving divorced husband in11 volved became entitled to such benefit prior to at12 taining age 60.’’; and

13 (2) in subsection (f)(1), by striking clause (D)

14 and inserting the following: ‘‘(D) for which such in15 dividual is entitled to widow’s or widower’s insurance

16 benefits if such individual became so entitled prior

17 to attaining age 60, or’’.

18 (b) CONFORMING AMENDMENT TO PROVISIONS FOR

19 DETERMINING AMOUNT OF INCREASE ON ACCOUNT OF

20 DELAYED RETIREMENT.—Section 202(w)(2)(B)(ii) of

21 such Act (42 U.S.C. 402(w)(2)(B)(ii)) is amended—

22 (1) by striking ‘‘either’’; and

23 (2) by striking ‘‘or suffered deductions under

24 section 203(b) or 203(c) in amounts equal to the

25 amount of such benefit’’.
5

•S 252 IS

1 SEC. 5. EFFECTIVE DATE.

2 The amendments made by this Act shall apply only

3 with respect to taxable years ending after December 31,

4 1995.

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