Seniors who elect to enter or remain in the workforce after claiming Social Security benefits would no longer face a penalty under legislation introduced this week by U.S. Rep. Jackie Walorski (R-IN).
“Older Americans who want to work should be able to do so without having their Social Security benefits reduced or delayed,” said Walorski, a member of the House Ways and Means Committee.
The Senior Citizens’ Freedom to Work Act of 2017 would abolish the Retirement Earnings Test (RET) that is applied to seniors claiming Old-Age and Survivors Insurance (OASI) benefits. RET reduces benefits for seniors earning wages above a predetermined threshold before reaching full retirement age, and then adds those withholdings to monthly benefits after they reach full retirement age.
“Eliminating this unnecessary penalty on seniors in the workforce is an important, common sense reform that will reward work and simplify Social Security for those who depend on it,” Walorski said.
U.S. Rep. Sam Johnson (R-TX) led legislation in 2000 that ended RET for seniors who are at or above retirement age. The bill introduced by Walorski and Johnson on Tuesday would end RET for all OASI beneficiaries.
“In 2000, my bill ended the earnings penalty for seniors once they reach their full retirement age,” said Johnson, the chairman of the House Ways and Means Social Security Subcommittee. “But that’s not enough. Now is the time to eliminate the earnings penalty for all Social Security beneficiaries. It makes no sense to punish hard work, but that is exactly what the earnings test does — it reduces benefits for seniors who choose to work. By eliminating the RET for all beneficiaries, Washington will send a clear message to seniors that their work is valued and that they remain a vital part of our economy.”