FOR IMMEDIATE RELEASE: MARCH 28, 2000
CONTACT: LINDA MACIAS/TIM SECHRIST (202) 225-6161

REP. JOE BACA VOTES TO REPEAL
SOCIAL SECURITY EARNINGS LIMIT

Measure Cleared for President's Signature

WASHINGTON, D.C. - Representative Joe Baca (D-Rialto) voted on Tuesday to give final Congressional approval to granting nearly three-quarters of a million American seniors a break by eliminating the onerous earnings limitation that penalizes Social Security beneficiaries between the ages of 65 and 69.

Under current law, seniors who claim Social Security benefits before they reach age 69 are subject to a reduction in benefits if they continue to work. For seniors age 65 to 69, benefits are reduced $1 for every $3 that their earnings exceed $17,000. Under current law, the earnings limitation will increase to $30,000 in 2002, and would be indexed after that. The change will affect 83,000 senior citizens in California.

"With a booming economy and with many seniors either wanting to work or needing to work, we shouldn't be punishing them simply because they get a paycheck," Baca said. "This bill completely repeals the earnings limit and gives hundreds of thousands of seniors incentives to stay on the job."

The measure, H.R. 5, passed the Senate last week and will now be sent to the White House for President Clinton's signature. Although the repeal measure is projected to cost the Social Security account $22.7 billion over ten years, the long-term impact likely will be minimal due to the increased number of seniors who will be working and paying into the system.

"This is an important first step in bringing about reforms of Social Security and Medicare in order to safeguard their solvency well into the 21st Century," Baca said. "This year, Congress must act in dedicating all of the budget surplus to protecting Social Security and Medicare before we spend it on anything else. This should be a bipartisan effort in doing what's right for the American people."

Congressman Baca supports a White House proposal to provide a voluntary prescription drug benefit for Medicare recipients. He has also co-authored legislation in the House to give seniors access to reduced-cost medications.

"We're talking about many people who can barely afford to put food on the table," Baca added. "They shouldn't be forced to choose between eating, staying warm, or staying healthy. It's outrageous that millions of Americans are subjected to such pain and suffering every day."