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PrintHouse Votes Unanimously to Repeal Social Security Earnings Penalty
By John Scorza and Paula Cruickshank, CCH Washington Staff Writers
The House unanimously passed a bill to repeal the Social Security earnings test. The bill (H.R. 5) would allow workers between the ages of 65 and 69 to work without losing Social Security benefits.
"Repealing the earnings penalty is based on the fundamental principals of fairness and freedom: Seniors should be free to work without penalty and be treated fairly by a program they've paid into their entire lives," remarked House Ways and Means Chairman Bill Archer (R-Tex.).
The House approved the bill on March 1, 2000 by a 422-0 vote. The repeal of the earnings penalty also enjoys considerable support in the Senate. "Now is the time for the Senate to act--without delay," said Senate Finance Committee Chairman William V. Roth (R-Del.).
Roth is urging Majority Leader Trent Lott (R-Miss.) to bring up the Senate's earnings-penalty repeal (S. 2074) for a quick vote. Meanwhile, President Clinton restated his support for the measure, if it comes to him without other provisions. Roth said he plans to deliver Clinton a clean bill.
Clinton, in a February 29 letter to congressional leaders, also asked federal lawmakers to pass legislation that would use the interest savings earned by paying down the debt to extend the solvency of Social Security to about 2050. "Moving forward on these two, simple steps would be a substantial down payment on Social Security reform," Clinton stated.
Currently, Social Security benefits for beneficiaries between 65 and 69 are reduced $1 for every $3 earned over $17,000. Beneficiaries over 70 are exempt from the earnings test. H.R. 5 would lower the age at which beneficiaries are exempt from the test from 70 to the full retirement age, which is 65 and is scheduled to rise to 67 by 2007. A separate earnings test would continue to apply to beneficiaries under the age of retirement.
Senior citizens groups praised the House's endorsement of the bill. "The House passage of legislation to get rid of the earnings limit is great news for seniors," said Sandra L. Butler, president of the United Seniors Association.
