‘‘(D) Notwithstanding any other provision of
this subsection, the exempt amount which is applica-
ble to an individual who has attained retirement age
(as defined in section 216(l)) before the close of the
taxable year involved—
‘‘(i) shall be $1,140 for each month of any
taxable year ending after 1995 and before
1997,
‘‘(ii) shall be $1,390 for each month of any
taxable year ending after 1996 and before
1998,
‘‘(iii) shall be $1,640 for each month of
any taxable year ending after 1997 and before
1999,
‘‘(iv) shall be $1,890 for each month of
any taxable year ending after 1998 and before
2000, and
‘‘(v) shall be $2,140 for each month of any
taxable year ending after 1999 and before
2001.’’.
(b) CONFORMING AMENDMENT.—The second sen-
tence of section 223(d)(4) of such Act (42 U.S.C.
423(d)(4)) is amended by striking ‘‘which is applicable to
individuals described in subparagraph (D) thereof’’ and
inserting ‘‘which would be applicable to individuals who
have attained retirement age (as defined in section 216(l))
without regard to any increase in such amount resulting
from a law enacted in 1995’’.
SEC. 2. REPEAL OF EARNINGS TEST IN 2001 FOR INDIVID-
UALS WHO HAVE ATTAINED RETIREMENT
AGE.
Effective with respect to taxable years ending after
2000—
(1) clause (B) in the third sentence of section
203(f)(1) of the Social Security Act (42 U.S.C.
403(f)(1)) is amended to read as follows: ‘‘(B) in
any taxable year before the close of which such indi-
vidual has attained retirement age (as defined in
section 216(l)),’’; and
(2) the first sentence of section 203(f)(3) of
such Act (42 U.S.C. 403(f)(3)) is amended to read
as follows: ‘‘For purposes of paragraph (1) and sub-
section (h), an individual’s excess earnings for a tax-
able year shall be 50 percent of his earnings for
such year in excess of the product of (A) the appli-
cable exempt amount as determined under para-
graph (8), and (B) the number of months in such
year; except that no part of the earnings of an indi-
vidual for any taxable year shall constitute excess
earnings for such purposes if the individual has at-
tained retirement age (as defined in section 216(l))
before the close of that year.’’.
SEC. 3. ACCELERATION OF 8 PERCENT DELAYED RETIRE-
MENT CREDIT.
Effective with respect to taxable years ending after
2000, paragraph (6) of section 202(w) of the Social Secu-
rity Act (42 U.S.C. 402(w)(6)) is amended—
(1) by striking ‘‘2005’’ in subparagraph (C)
and inserting ‘‘1995’’; and
(2) by striking ‘‘2004’’ in subparagraph (D)
and inserting ‘‘1994’’.
SEC. 4. CONFORMING AND RELATED AMENDMENTS.
Effective with respect to taxable years ending after
1993—
(1) section 203(c)(1) of the Social Security Act
(42 U.S.C. 403(c)(1)) is amended by striking ‘‘is
under the age of seventy’’ and inserting ‘‘is under
retirement age (as defined in section 216(l))’’;
(2) paragraphs (1)(A) and (2) of section 203(d)
of such Act (42 U.S.C. 403(d)(1)(A), (2)) are each
amended by striking ‘‘under the age of seventy’’ and
inserting ‘‘under retirement age (as defined in sec-
tion 216(l))’’;
(3) subparagraph (D) of section 203(f)(5) of
such Act (42 U.S.C. 403(f)(5)(D)) is amended—
(A) by striking ‘‘(D) In the case of’’ and
all that follows down through ‘‘(ii) an individ-
ual’’ and inserting the following:
‘‘(D) In the case of an individual’’;
(B) by striking ‘‘became entitled to such
benefits’’ and all that follows and inserting ‘‘be-
came entitled to such benefits, there shall be ex-
cluded from gross income any such other in-
come.’’; and
(C) by shifting such subparagraph as so
amended to the left to the extent necessary to
align its left margin with that of subparagraphs
(A) through (C) of such section;
(4) section 203(f)(8)(A) of such Act (42 U.S.C.
403(f)(8)(A)) is amended by striking ‘‘the new ex-
empt amounts (separately stated for individuals de-
scribed in subparagraph (D) and for other individ-
uals) which are to be applicable’’ and inserting ‘‘the
new exempt amount which is to be applicable’’;
(5) section 203(f)(8)(B) of such Act (42 U.S.C.
403(f)(8)(B)) is amended—
(A) by striking all that precedes clause (i)
and inserting the following: