Eliminates windfall Social Security benefits for workers who are first eligible after 1985 for both a pension from non-covered employment and Social Security retirement or disability benefits. Advances scheduled increases in Social Security tax rates. Accelerates to twice monthly the frequency with which States are required to deposit withheld Social Security contributions. Reauthorizes interfund borrowing among the three Social Security trust funds for calendar years 1983 through 1987 with repayment by the end of 1989. Required the Chairmen of the House Ways and Means Committee and the Senate Finance Committee to appoint a panel to conduct a study concerning the establishment of the Social Security Administration as an independent agency.
Benefits received by married taxpayers filing separately are taxable without regard to other income.
Appropriates amounts equal to estimated tax liability to the Social Security trust funds. Raises the age of eligibility for unreduced retirement benefits in two stages to 67 by the year 2027. Workers born in 1938 will be the first group affected by the gradual increase. Benefits will still be available at age 62, but with greater reduction. Requires the Secretary of HHS to conduct a comprehensive study and analysis of the implications of the changes in retirement age for those individuals affected by the provision for increasing full retirement age who, because they are engaging in physically demanding employment or because they are unable to extend their working careers for health reasons, may not find their work lifetimes are increased as a result of general improvements in longevity.