Purple Heart Freedom to Work Act

To amend title II of the Social Security Act to establish a disability benefit offset for Purple Heart recipients, and for other purposes. 1. Short title This Act may be cited as the Purple Heart Freedom to Work Act 2. Disability benefit offset for Purple Heart recipients (a) In general Section 223(e) of such Act ( 42 U.S.C. 423(e) (1) in paragraph (1), by striking (1) No benefit (1) (A) Except as provided in paragraph (2), No benefit (2) in paragraph (2)— (A) by striking (2) No benefit (B) No benefit (B) by striking paragraph (1) subparagraph (A) (3) by adding at the end the following: (2) (A) Notwithstanding subsection (a)(1) of this section, in any case in which an individual is entitled to a monthly insurance benefit under such subsection based on a disability that is attributable to an injury for which the individual was awarded the Purple Heart, such individual shall be deemed to continue to be entitled to such benefit without regard to the individual’s termination month, except that payment of such benefit for any month shall be subject to the reduction described in subparagraph (B). (B) (i) Any benefit described in subparagraph (A) otherwise payable to an individual described in such subparagraph for a month shall be reduced by $1 for each $4 by which the individual’s earnings derived from services for such month exceeds the amount specified for such month in clause (ii), except that such benefit may not be reduced below $0. (ii) The amount specified in this clause with respect to an individual for a month is the amount of earnings derived from services, applicable to the individual for such month under subsection (d)(4)(A), sufficient to demonstrate the individual’s ability to engage in substantial gainful activity. (C) In the case of a benefit otherwise payable to an individual for a month under section 202 on the basis of the wages and self-employment income of an individual whose benefit is reduced pursuant to subparagraph (B), such benefit shall be reduced for such month by the same proportion as the reduction made pursuant to subparagraph (B). . (b) Conforming amendments Section 223(a)(2) of such Act ( 42 U.S.C. 423(a)(2) and section 215(b)(2)(A)(ii) , section 215(b)(2)(A)(ii), and subsection (e) of this section (c) Effective date The amendments made by this section shall apply with respect to benefits payable for months beginning after the date that is 6 months after the date of the enactment of this Act. 3. Application of higher SGA amount for Purple Heart recipients (a) In general Section 223(d)(4)(A) of the Social Security Act ( 42 U.S.C. 423(d)(4)(A) who is blind or who is entitled to a monthly insurance benefit under subsection (a)(1) based on a disability that is attributable to an injury for which the individual was awarded the Purple Heart (b) Effective date The amendments made by this subsection (a) shall apply with respect to benefits payable for months beginning after the date that is 6 months after the date of the enactment of this Act.

Summary: Purple Heart Freedom to Work Act This bill increases the monthly income limit that is used to determine whether certain Purple Heart recipients are eligible for Social Security Disability Insurance (SSDI) benefits. Specifically, when making such determinations with respect to Purple Heart recipients who are entitled to SSDI benefits based on combat-related injuries, the Social Security Administration must use the limit that applies to individuals who are blind rather than the lower limit that applies to other SSDI recipients. In addition, the bill phases out SSDI benefits for these Purple Heart recipients, with benefits reduced by $1 for every $4 of earnings in excess of the limit.