Walorski Reintroduces Bill to Repeal Social Security Penalty on Working Seniors

Tuesday, June 15, 2021

Walorski Reintroduces Bill to Repeal Social Security Penalty on Working Seniors

Senior Citizens’ Freedom to Work Act Would Stop Penalizing Social Security Recipients Who Continue to Work

WASHINGTON – U.S. Rep. Jackie Walorski (R-Ind.) today reintroduced the Senior Citizens’ Freedom to Work Act, legislation to end a penalty on seniors who continue working or return to work after claiming Social Security benefits.

“Older Americans who stay on the job or return to work after claiming Social Security shouldn’t have their benefits reduced or delayed as a result,” Congresswoman Walorski said. “With small businesses across the country struggling to hire workers, our economic recovery depends on encouraging work, not penalizing it. By eliminating an unnecessary Social Security penalty, the Senior Citizens’ Freedom to Work Act is a simple but important fix to ensure working seniors get the full benefits they’re counting on.”

BACKGROUND

H.R. 3921, the Senior Citizens’ Freedom to Work Act, would eliminate the Retirement Earnings Test (RET), a penalty on Social Security Old-Age and Survivors Insurance (OASI) beneficiaries who choose to enter, remain in, or return to the labor force. The RET penalty primarily affects younger seniors who choose to work after claiming Social Security benefits.

The full text of the bill is available here.

The legislation is supported by the National Taxpayers Union (NTU).

“Social Security beneficiaries deserve the freedom to continue earning a paycheck in retirement,” said Andrew Lautz, NTU Director of Federal Policy. “Representative Walorski’s bill to repeal the Retirement Earnings Test (RET) would correct long-running inequities in the Social Security program and offer more flexibility for working seniors. National Taxpayers Union applauds Representative Walorski for introducing the Senior Citizens’ Freedom to Work Act.”

In March, Walorski introduced H.R. 1601, the Pandemic Relief for Working Seniors Act, which would effectively suspend RET penalties for the vast majority of working Social Security recipients for 2020 and 2021.

Walorski represents the 2nd Congressional District of Indiana, serving as a member of the House Ways and Means Committee and the Ranking Member of the House Ethics Committee.

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