The House is likely to move quickly on a Social Security-related measure (H.R. 5) that would eliminate a provision affecting the benefit levels of some retirees. Under the existing earnings limit provision, Social Security payments are reduced for retirees age 65 to 69 whose annual earnings exceed a certain threshold.
Currently, retirees in that age group lose $1 in benefits for every $3 they earn beyond $17,000. It is estimated that 800,000 to 1 million retirees will be affected by the restriction this year.
The bill was originally approved, 422-0, by the House on March 1. The Senate then took up the measure on March 21, adding an amendment by Sen. William Roth (R-DE).
Described by Sen. Roth as a “technical correction,” the amendment pertains to a provision in current law affecting retirees age 62 to 64. Under that provision, Social Security beneficiaries in that age group receive $1 less for every $2 they earn over $10,080 in a year.
Sen. Roth’s amendment would ensure that earnings limit is waived starting in January of the year that each retiree turns 65.
With the amendment, the Senate unanimously approved the bill by a 100-0 vote on March 22. Sen. Roth called the earnings limit “a relic of the Depression,” adding: “It is the product of…a time when folks believed that an individual should retire completely and make room for others to work. It is antiquated and antiproductive.”
Sen. Roth also highlighted the bill’s effect on women, who usually earn less money in their lifetimes and have fewer retirement assets than men. “As Americans live longer, work will likely be more and more important to the financial security of seniors, especially for women,” he said.
When the House reconsiders H.R. 5 with the amendment, it is expected to gain easy approval. The President has indicated that he will sign the bill into law.
