II

106TH CONGRESS

1ST SESSION S. 279

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 21, 1999

Mr. MCCAIN (for himself, Mr. KYL, and Mr. HELMS) 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 ‘‘Senior Citizens’ Free5 dom to Work Act of 1999’’.

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 279 IS

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

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

3 in section 216(l))’’;

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

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

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

7 section 216(l))’’;

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

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

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

11 (4) in subsection (f)(3)—

(A) by striking ‘‘331 12 ⁄3 percent’’ and all

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

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

15 earnings for such year in excess of the product

16 of the exempt amount as determined under

17 paragraph (8),’’; and

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

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

20 (5) in subsection (h)(1)(A), by striking ‘‘age

21 70’’ each place it appears and inserting ‘‘retirement

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

23 (6) in subsection (j)—

24 (A) in the heading, by striking ‘‘Age Sev25 enty’’ and inserting ‘‘Retirement Age’’; and
3

•S 279 IS

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

2 inserting ‘‘having attained retirement age (as

3 defined in section 216(l))’’.

4 SEC. 3. CONFORMING AMENDMENTS ELIMINATING THE

5 SPECIAL EXEMPT AMOUNT FOR INDIVIDUALS

6 WHO HAVE ATTAINED RETIREMENT AGE.

7 (a) UNIFORM EXEMPT AMOUNT.—Section

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

9 403(f)(8)(A)) is amended by striking ‘‘the new exempt

10 amounts (separately stated for individuals described in

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

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

13 shall be applicable’’.

14 (b) CONFORMING AMENDMENTS.—Section

15 203(f)(8)(B) of the Social Security Act (42 U.S.C.

16 403(f)(8)(B)) is amended—

17 (1) in the matter preceding clause (i), by strik18 ing ‘‘Except’’ and all that follows through ‘‘which19 ever’’ and inserting ‘‘The exempt amount which is

20 applicable for each month of a particular taxable

21 year shall be whichever’’;

22 (2) in clauses (i) and (ii), by striking ‘‘cor23 responding’’ each place it appears; and

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

25 amount’’ and inserting ‘‘the exempt amount’’.
4

•S 279 IS

1 (c) REPEAL OF BASIS FOR COMPUTATION OF SPE2 CIAL EXEMPT AMOUNT.—Section 203(f)(8)(D) of the So3 cial Security Act (42 U.S.C. (f)(8)(D)) is repealed.

4 SEC. 4. ADDITIONAL CONFORMING AMENDMENTS.

5 (a) ELIMINATION OF REDUNDANT REFERENCES TO

6 RETIREMENT AGE.—Section 203 of the Social Security

7 Act (42 U.S.C. 403) is amended—

8 (1) in subsection (c), in the last sentence, by

9 striking ‘‘nor shall any deduction’’ and all that fol10 lows and inserting ‘‘nor shall any deduction be made

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

12 insurance benefit if the widow, surviving divorced

13 wife, widower, or surviving divorced husband in14 volved became entitled to such benefit prior to at15 taining age 60.’’; and

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

17 and inserting the following: ‘‘(D) for which such in18 dividual is entitled to widow’s or widower’s insurance

19 benefits if such individual became so entitled prior

20 to attaining age 60,’’.

21 (b) CONFORMING AMENDMENT TO PROVISIONS FOR

22 DETERMINING AMOUNT OF INCREASE ON ACCOUNT OF

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

24 Social Security Act (42 U.S.C. 402(w)(2)(B)(ii)) is

25 amended—
5

•S 279 IS

1 (1) by striking ‘‘either’’; and

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

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

4 amount of such benefit’’.

5 (c) PROVISIONS RELATING TO EARNINGS TAKEN

6 INTO ACCOUNT IN DETERMINING SUBSTANTIAL GAINFUL

7 ACTIVITY OF BLIND INDIVIDUALS.—The second sentence

8 of section 223(d)(4)(A) of the Social Security Act (42

9 U.S.C. 423(d)(4)(A)) is amended by striking ‘‘if section

10 102 of the Senior Citizens’ Right to Work Act of 1996

11 had not been enacted’’ and inserting the following: ‘‘if the

12 amendments to section 203 made by section 102 of the

13 Senior Citizens’ Right to Work Act of 1996 and by the

14 Senior Citizens’ Freedom to Work Act of 1999 had not

15 been enacted’’.

16 SEC. 5. EFFECTIVE DATE.

17 The amendments and repeals made by this Act shall

18 apply with respect to taxable years ending after December

19 31, 1998.

Æ