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PrintClinton Signs Social Security Earnings Limit Repeal
By Paula Cruickshank, CCH Washington Staff Writer
President Clinton on April 7, 2000, signed legislation to repeal the Social Security earnings limit for retirement-age workers.
Clinton, at a signing ceremony, said that the Senior Citizens Freedom to Work Act of 2000 not only would allow seniors between the ages of 65 and 69 to work without penalty, but also would encourage employers with labor shortages to hire older, experienced workers.
It also would mean more baby boomers will be working longer in the future, Clinton noted at the signing ceremony.
Under current law, if seniors continue to work from normal retirement age (currently 65) to age 70, some of their Social Security benefits are withheld. In 2000, the benefits are reduced $1 for every $3 earned above $17,000. The withheld benefits are then returned, in general with interest, in the form of higher benefits after stopping work or at age 70.
The new law, which was unanimously approved by the House and Senate, will lower the age at which beneficiaries are exempt from the test to 65. The earnings limit would rise to $25,000 in 2001 and $30,000 in 2002. It also contains a provision to ensure that 64-year-old workers would not be subject to the earnings penalty during the months prior to turning 65.
The new law is retroactive to the beginning of the year. This means that "hundred of thousands of older working Americans will get checks next month reimbursing them for all the Social Security benefits withheld this year," Clinton stated.
About 800,000 workers are expected to benefit from the new law, according to a White House release. Social Security Commissioner Ken Apfel, following the White House ceremony, said that "one of the unknowns" is how many new older workers will be drawn into the labor market, but he predicted the new law will have a "modest, positive effect."
Clinton also announced a new link to the Social Security website (www.ssa.gov) which will allow workers to make retirement benefit estimates based on their projected earnings and other plans.
To ensure privacy and protect records from unauthorized users, there is no linkage to individual earnings records in the SSA database. All benefit estimates would be based solely on input from the users, according to White House Press Secretary Joe Lockhart.
