Senior Citizens’ Freedom to Work Act of 2023

To amend title II of the Social Security Act to repeal the retirement earnings test, and for other purposes. 1. Short title This Act may be cited as the Senior Citizens’ Freedom to Work Act of 2023 2. Repeal of the Retirement Earnings Test (a) In general Subsections (b), (c)(1), (d), (f), (h), (j), and (k) of section 203 of the Social Security Act ( 42 U.S.C. 403 (b) Conforming amendments Section 203 of such Act (as amended by subsection (a)) is further amended— (1) by redesignating subsections (c), (e), (g), and (l) as subsections (b), (c), (d), and (e), respectively; (2) in subsection (b) (as so redesignated)— (A) by striking Noncovered Work Outside the United States or (B) by redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively; (C) by striking paragraphs (2), (3), and (4) of (D) by striking the last sentence; (3) in subsection (c) (as so redesignated), by striking subsections (c) and (d) subsection (b) (4) in subsection (d) (as so redesignated), by striking subsection (c) subsection (b) (5) in subsection (e) (as so redesignated), by striking subsection (g) or (h)(1)(A) subsection (d) (c) Additional conforming amendments (1) Provisions relating to benefits terminated upon deportation Section 202(n)(1) of the Social Security Act ( 42 U.S.C. 402(n)(1) Section 203(b), (c), and (d) Section 203(b) (2) Provisions relating to exemptions from reductions based on early retirement Section 202(q) of such Act ( 42 U.S.C. 402(q) (A) in paragraph (5)(B), by striking section 203(c)(2) section 203(b)(1) (B) in paragraph (7)(A), by striking deductions under section 203(b), 203(c)(1), 203(d)(1), or 222(b) deductions on account of work under section 203 (as in effect on the day before the date of the enactment of the Senior Citizens’ Freedom to Work Act of 2023 (3) Provisions relating to exemptions from reductions based on disregard of certain entitlements to child’s insurance benefits Section 202(s) of such Act ( 42 U.S.C. 402(s) (A) in paragraph (1), by striking paragraphs (2), (3), and (4) of section 203(c) paragraphs (1), (2), and (3) of section 203(b) (B) in paragraph (3), by striking The last sentence of subsection (c) of section 203, subsection (f)(1)(C) of section 203, and subsections Subsections (4) Provisions relating to suspension of aliens' benefits Section 202(t)(7) of such Act ( 42 U.S.C. 402(t)(7) Subsections (b), (c), and (d) Subsection (b) (5) Provisions relating to reductions in benefits based on maximum benefits Section 203(a)(3)(B)(iii) of such Act ( 42 U.S.C. 403(a)(3)(B)(iii) and subsections (b), (c), and (d) and subsection (b) (6) Provisions relating to penalties for misrepresentations concerning earnings for periods subject to deductions on account of work Section 208(a)(1)(C) of such Act ( 42 U.S.C. 408(a)(1)(C) under section 203(f) of this title for purposes of deductions from benefits under section 203 (as in effect on the day before the date of the enactment of the Senior Citizens’ Freedom to Work Act of 2023 (7) Provisions taking into account earnings in determining benefit computation years Clause (I) in the next to last sentence of section 215(b)(2)(A) of such Act ( 42 U.S.C. 415(b)(2)(A) no earnings as described in section 203(f)(5) in such year no wages, and no net earnings from self-employment (in excess of net loss from self-employment), in such year (8) Provisions relating to rounding of benefits Section 215(g) of such Act ( 42 U.S.C. 415(g) and any deduction under section 203(b) (9) Provisions defining income for purposes of SSI Section 1612(a) of such Act ( 42 U.S.C. 1382a(a) (A) in paragraph (1)(A), by striking as determined under section 203(f)(5)(C) as defined in the last two sentences of this subsection (B) by adding at the end (after and below paragraph (2)(H)) the following: For purposes of paragraph (1)(A), the term wages wages . (d) Repeal of deductions on account of work under the Railroad Retirement Program (1) In general Section 2 of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231a (A) by striking subsection (f); and (B) by striking subsection (g)(2) and by redesignating subsection (g)(1) as subsection (g). (2) Conforming amendments (A) Section 3(f)(1) of such Act ( 45 U.S.C. 231b(f)(1) before any reductions under the provisions of section 2(f) of this Act, (B) Section 4(g)(2) of such Act ( 45 U.S.C. 231c(g)(2) (i) in clause (i), by striking shall, before any deductions under section 2(g) of this Act, shall (ii) in clause (ii), by striking any deductions under section 2(g) of this Act and before (e) Effective date The amendments made by this section shall apply with respect to taxable years ending after December 31, 2023.

Summary: Senior Citizens' Freedom to Work Act of 2023 This bill eliminates provisions that reduce Social Security retirement benefits for certain beneficiaries who are younger than full retirement age and who have outside income above a certain threshold, also known as the Retirement Earnings Test (RET). Under the RET, benefits are reduced for beneficiaries who are younger than full retirement age if they earn more than the annual limit ($21,240 for 2023). Withheld benefits are subsequently added to monthly benefits once the beneficiary reaches full retirement age.