Senior Citizens’ Freedom to Work Act of 2021
Bill: S.3101 | Sponsor: Sen. Scott, Tim (R-SC)
Policy area: Social Welfare

Summary:
Senior Citizens' Freedom to Work Act of 2021
This bill eliminates provisions that reduce Social Security retirement benefits for certain beneficiaries who have outside income. Currently, benefits are reduced for beneficiaries who are younger than full retirement age if they earn more than $18,960 in outside income in a year.

To amend title II of the Social Security Act to repeal the retirement 
                 earnings test, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Senior Citizens' Freedom to Work Act 
of 2021''.

SEC. 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) are 
repealed.
    (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''; and
                    (D) by striking the last sentence;
            (3) in subsection (c) (as so redesignated), by striking 
        ``subsections (c) and (d)'' and inserting ``subsection (b)'';
            (4) in subsection (d) (as so redesignated), by striking 
        ``subsection (c)'' each place it appears and inserting 
        ``subsection (b)''; and
            (5) in subsection (e) (as so redesignated), by striking 
        ``subsection (g) or (h)(1)(A)'' and inserting ``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)) is amended by striking ``Section 203(b), (c), 
        and (d)'' and inserting ``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)) is amended--
                    (A) in paragraph (5)(B), by striking ``section 
                203(c)(2)'' and inserting ``section 203(b)(1)''; and
                    (B) in paragraph (7)(A), by striking ``deductions 
                under section 203(b), 203(c)(1), 203(d)(1), or 222(b)'' 
                and inserting ``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 2021) or deductions under section 222(b)''.
            (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)) is 
        amended--
                    (A) in paragraph (1), by striking ``paragraphs (2), 
                (3), and (4) of section 203(c)'' and inserting 
                ``paragraphs (1), (2), and (3) of section 203(b)''; and
                    (B) in paragraph (3), by striking ``The last 
                sentence of subsection (c) of section 203, subsection 
                (f)(1)(C) of section 203, and subsections'' and 
                inserting ``Subsections''.
            (4) Provisions relating to suspension of aliens' 
        benefits.--Section 202(t)(7) of such Act (42 U.S.C. 402(t)(7)) 
        is amended by striking ``Subsections (b), (c), and (d)'' and 
        inserting ``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)) is amended by striking ``and 
        subsections (b), (c), and (d)'' and inserting ``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)) is amended by striking ``under section 203(f) of 
        this title for purposes of deductions from benefits'' and 
        inserting ``under section 203 (as in effect on the day before 
        the date of the enactment of the Senior Citizens' Freedom to 
        Work Act of 2021) for purposes of deductions from benefits on 
        account of work''.
            (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)) is amended by striking ``no earnings as described 
        in section 203(f)(5) in such year'' and inserting ``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)) is amended by striking 
        ``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)) is amended--
                    (A) in paragraph (1)(A), by striking ``as 
                determined under section 203(f)(5)(C)'' and inserting 
                ``as defined in the last two sentences of this 
                subsection''; and
                    (B) by adding at the end (after and below paragraph 
                (2)(H)) the following:
``For purposes of paragraph (1)(A), the term `wages' means wages as 
defined in section 209, but computed without regard to the limitations 
as to amounts of remuneration specified in paragraphs (1), (6)(B), 
(6)(C), (7)(B), and (8) of section 209(a). In making the computation 
under the preceding sentence, (A) services which do not constitute 
employment as defined in section 210, performed within the United 
States by an individual as an employee or performed outside the United 
States in the active military or naval services of the United States, 
shall be deemed to be employment as so defined if the remuneration for 
such services is not includible in computing the individual's net 
earnings or net loss from self-employment for purposes of title II, and 
(B) the term `wages' shall be deemed not to include (i) the amount of 
any payment made to, or on behalf of, an employee or any of his or her 
dependents (including any amount paid by an employer for insurance or 
annuities, or into a fund, to provide for any such payment) on account 
of retirement, or (ii) any payment or series of payments by an employer 
to an employee or any of his or her dependents upon or after the 
termination of the employee's employment relationship because of 
retirement after attaining an age specified in a plan referred to in 
section 209(a)(11)(B) or in a pension plan of the employer.''.
    (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) is amended--
                    (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)) is amended in the first sentence by 
                striking ``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)) is amended--
                            (i) in clause (i), by striking ``shall, 
                        before any deductions under section 2(g) of 
                        this Act,'' and inserting ``shall''; and
                            (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, 2021.
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