| FOR IMMEDIATE RELEASE | Contact: Michael Gorges |
| March 1, 2000 | 202-225-3611 |
The U.S. House of Representatives approved H.R. 5, a bill that repeals the earnings test for Social Security beneficiaries over the age of 65. The earnings limit originated in the 1930's and it remains despite the vast changes in the economy and the lives of senior citizens that have taken place over the last 60 years. Congressman Dale Kildee voted in favor of H.R. 5.
Under current law, seniors who claim Social Security benefits before they reach 69 are subject to a reduction in benefits if they choose to continue to work. For seniors 65 to 69, benefits are reduced by $1 for every $3 that their earnings exceed the limit - $17,000 in 2000, rising to $30,000 in 2002 and indexed after that.
H.R. 5 would repeal the Social Security earnings limit entirely, effective
immediately.
"The Senior Citizens Freedom to Work Act would help the 21,011 senior citizens
in Michigan who are being penalized for working," Rep. Kildee said. "It
makes no sense to penalize senior citizens for participating in the workforce.
People remain healthy and vigorous longer than they did in the 1930's and it
makes sense to repeal this obsolete and punitive limit.
"I have supported raising the limit in past years and support repealing it now. I also believe that it is important to consider it as part of a broader plan - one that uses the opportunity of a surplus to extend the life of Social Security and Medicare and pay down the debt.
"Today, we took the first step towards strengthening retirement security for all seniors. But this step was just the start of what we must do in order to put Social Security on a firm financial footing well into this century.
"I hope the House of Representatives - who showed such passion today when talking about removing the earnings limit - will show the same kind of passion over the next few months when we debate the proper use of the surplus. We must use the budget surplus to strengthen Social Security and Medicare."
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