II

105TH CONGRESS

1ST SESSION S. 202

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 23, 1997

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 1997’’.

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—
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•S 202 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
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•S 202 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’’.
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•S 202 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—
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•S 202 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) APPLICATION TO BLIND BENEFICIARIES.—Sec6 tion 223(d)(4)(A) of the Social Security Act (42 U.S.C.

7 423(d)(4)(A)) is amended by striking the second sentence.

8 SEC. 5. EFFECTIVE DATE.

9 The amendments made by this Act shall apply only

10 with respect to taxable years ending after December 31,

11 1996.

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