II

104TH CONGRESS

1ST SESSION S. 31

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 4, 1995

Mr. MCCAIN (for himself, Mr. BRYAN, Mr. COATS, Mr. GORTON, Mr. HEFLIN,

Mr. HELMS, Mr. KYL, Mr. LOTT, Mr. MACK, Mr. REID, Mr. SHELBY,

Mr. SMITH, Mr. STEVENS, Mr. WARNER, and Mr. GRAMS) 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 1993’’.
2

•S 31 IS

1 SEC. 2. ELIMINATION OF EARNINGS TEST FOR INDIVID2 UALS WHO HAVE ATTAINED RETIREMENT

3 AGE.

4 Section 203 of the Social Security Act is amended—

5 (1) in paragraph (1) of subsection (c) and para6 graphs (1)(A) and (2) of subsection (d), by striking

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

8 (as defined in section 216(l))’’;

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

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

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

(3) in subsection (f)(3), by striking ‘‘331 12 ⁄3 per13 cent’’ and all that follows through ‘‘any other indi14 vidual,’’ and inserting ‘‘50 percent of such individ15 ual’s earnings for such year in excess of the product

16 of the exempt amount as determined under para17 graph (8),’’ and by striking ‘‘age 70’’ and inserting

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

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

20 70’’ each place it appears and inserting ‘‘retirement

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

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

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

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

25 ‘‘having attained retirement age (as defined in sec26 tion 216(l))’’.
3

•S 31 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 is amended by

6 striking ‘‘the new exempt amounts (separately stated for

7 individuals described in subparagraph (D) and for other

8 individuals) which are to be applicable’’ and inserting ‘‘a

9 new exempt amount which shall be applicable’’.

10 (b) CONFORMING AMENDMENTS.—Section

11 203(f)(8)(B) of such Act is amended—

12 (1) in the matter preceding clause (i), by strik13 ing ‘‘Except’’ and all that follows through ‘‘which14 ever’’ and inserting ‘‘The exempt amount which is

15 applicable for each month of a particular taxable

16 year shall be whichever’’;

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

18 and

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

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

21 (c) REPEAL OF BASIS FOR COMPUTATION OF SPE22 CIAL EXEMPT AMOUNT.—Section 203(f)(8)(D) of such

23 Act is repealed.
4

•S 31 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 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 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 31 IS

1 (c) CONTINUED APPLICATION OF RULE GOVERNING

2 ENTITLEMENT OF BLIND BENEFICIARIES.—The second

3 sentence of section 223(d)(4) of such Act is amended by

4 inserting after ‘‘subparagraph (D) thereof’’ where it first

5 appears the following: ‘‘(or would be applicable to such

6 individuals but for the amendments made by the Older

7 Americans’ Freedom to Work Act of 1990)’’.

8 SEC. 5. EFFECTIVE DATE.

9 The amendments made by this Act shall apply only

10 with respect to taxable years beginning after December

11 31, 1993.

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