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Senior Citizen's Freedom to Work Act of 2000

Complete text of H.R. 5, The Senior Citizens' Freedom to Work Act of 2000. This bill eliminates the Social Security "earnings test" which currently limits the amount of outside income retirees can make without suffering a reduction in Social Security benefits.


Union Calendar No. 284

106th CONGRESS

2d Session

H. R. 5

[Report No. 106-507]

To amend title II of the Social Security Act to eliminate the earnings test for individuals who have attained retirement age.

IN THE HOUSE OF REPRESENTATIVES

Cosponsors (204) Omitted

March 1, 2000

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on March 1, 1999]

A BILL

To amend title II of the Social Security Act to eliminate the earnings test for individuals who have attained retirement age.

    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 2000'.

SEC. 2. ELIMINATION OF EARNINGS TEST FOR INDIVIDUALS WHO HAVE ATTAINED RETIREMENT AGE.

    Section 203 of the Social Security Act (42 U.S.C. 403) is amended--
      (1) in subsection (c)(1), by striking `the age of seventy' and inserting `retirement age (as defined in section 216(l))';
      (2) in paragraphs (1)(A) and (2) of subsection (d), by striking `the age of seventy' each place it appears and inserting `retirement age (as defined in section 216(l))';
      (3) in subsection (f)(1)(B), by striking `was age seventy or over' and inserting `was at or above retirement age (as defined in section 216(l))';
      (4) in subsection (f)(3)--
        (A) by striking `33 1/3 percent' and all that follows through `any other individual,' and inserting `50 percent of such individual's earnings for such year in excess of the product of the exempt amount as determined under paragraph (8),'; and
        (B) by striking `age 70' and inserting `retirement age (as defined in section 216(l))';
      (5) in subsection (h)(1)(A), by striking `age 70' each place it appears and inserting `retirement age (as defined in section 216(l))'; and
      (6) in subsection (j)--
        (A) in the heading, by striking `Age Seventy' and inserting `Retirement Age'; and
        (B) by striking `seventy years of age' and inserting `having attained retirement age (as defined in section 216(l))'.

SEC. 3. CONFORMING AMENDMENTS ELIMINATING THE EXEMPT AMOUNT FOR INDIVIDUALS WHO HAVE ATTAINED RETIREMENT AGE.

    (a) UNIFORM EXEMPT AMOUNT- Section 203(f)(8)(A) of the Social Security Act (42 U.S.C. 403(f)(8)(A)) is amended by striking `the new exempt amounts (separately stated for individuals described in subparagraph (D) and for other individuals) which are to be applicable' and inserting `a new exempt amount which shall be applicable'.
    (b) CONFORMING AMENDMENTS- Section 203(f)(8)(B) of the Social Security Act (42 U.S.C. 403(f)(8)(B)) is amended--
      (1) in the matter preceding clause (i), by striking `Except' and all that follows through `whichever' and inserting `The exempt amount which is applicable for each month of a particular taxable year shall be whichever';
      (2) in clause (i), by striking `corresponding';
      (3) in clause (ii), in the matter preceding subclause (I), by striking `corresponding' and all that follows through `individuals)' and inserting `exempt amount which is in effect with respect to months in the taxable year ending after 1993 and before 1995 with respect to individuals who have not attained retirement age (as defined in section 216(l))';
      (4) in subclause (II) of clause (ii), by striking `2000' and all that follows and inserting `1992,'; and
      (5) in the last sentence, by striking `an exempt amount' and inserting `the exempt amount'.
    (c) REPEAL OF BASIS FOR COMPUTATION OF EXEMPT AMOUNT AFFECTING INDIVIDUALS WHO HAVE ATTAINED RETIREMENT AGE- Section 203(f)(8)(D) of the Social Security Act (42 U.S.C. 403(f)(8)(D)) is repealed.

SEC. 4. ADDITIONAL CONFORMING AMENDMENTS.

    (a) ELIMINATION OF REDUNDANT REFERENCES TO RETIREMENT AGE- Section 203 of the Social Security Act (42 U.S.C. 403) is amended--
      (1) in subsection (c), in the last sentence, by striking `nor shall any deduction' and all that follows and inserting `nor shall any deduction be made under this subsection from any widow's or widower's insurance benefit if the widow, surviving divorced wife, widower, or surviving divorced husband involved became entitled to such benefit prior to attaining age 60.'; and
      (2) in subsection (f)(1), by striking clause (D) and inserting the following: `(D) for which such individual is entitled to widow's or widower's insurance benefits if such individual became so entitled prior to attaining age 60,'.
    (b) CONFORMING AMENDMENT TO PROVISIONS FOR DETERMINING AMOUNT OF INCREASE ON ACCOUNT OF DELAYED RETIREMENT- Section 202(w)(2)(B)(ii) of the Social Security Act (42 U.S.C. 402(w)(2)(B)(ii)) is amended--
      (1) by striking `either'; and
      (2) by striking `or suffered deductions under section 203(b) or 203(c) in amounts equal to the amount of such benefit'.
    (c) PROVISIONS RELATING TO EARNINGS TAKEN INTO ACCOUNT IN DETERMINING SUBSTANTIAL GAINFUL ACTIVITY OF BLIND INDIVIDUALS- The second sentence of section 223(d)(4) of such Act (42 U.S.C. 423(d)(4)) is amended by striking `if section 102 of the Senior Citizens' Right to Work Act of 1996 had not been enacted' and inserting the following: `if the amendments to section 203 made by section 102 of the Senior Citizens' Right to Work Act of 1996 and by the Senior Citizens' Freedom to Work Act of 2000 had not been enacted'.

SEC. 5. EFFECTIVE DATE.

    (a) IN GENERAL- The amendments and repeals made by this Act shall apply with respect to taxable years ending after December 31, 1999.
    (b) SPECIAL RULE APPLICABLE TO INDIVIDUALS WHO ATTAIN NORMAL RETIREMENT AGE DURING THE FIRST TAXABLE YEAR ENDING AFTER DECEMBER 31, 1999- Sections 202 and 203 of the Social Security Act, as in effect immediately prior to the amendments and repeals made by this Act, shall apply to any individual who attains retirement age (as defined in section 216(l) of such Act) during the first taxable year ending after December 31, 1999 (and to any person receiving benefits under title II of the Social Security Act on the basis of the wages and self-employment income of such individual), but only with respect to earnings for so much of such taxable year as precedes the month in which such individual attains retirement age (as so defined).

Union Calendar No. 284


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