Washington, D.C. — Congressman Greg Murphy, M.D. (NC-03), introduced the Senior Citizens’ Freedom to Work Act to repeal the retirement earnings test (RET), which reduces benefits for Social Security beneficiaries who claim early retirement but choose to continue working and make above a certain threshold.
“American seniors’ ability to earn income and enjoy the dignity of work should not be penalized by arbitrary parameters to receive Social Security benefits,” said Congressman Greg Murphy, M.D. “Current law unnecessarily complicates seniors’ right to access the benefits they paid into for the entirety of their careers and must be done away with. While certain guardrails are in place to ensure the viability of Social Security and incentivize participation in the workforce, the Retirement Earnings Test does neither and is a bureaucratic hurdle that does more harm than good.”
Background
- The Retirement Earnings Test (RET) reduces Social Security benefits that early retirees are eligible to receive by nearly fifty percent for earning more than $21,240 annually.
- Although the reduction in benefits is returned to seniors upon reaching Full Retirement Age (FRA), many seniors are unaware of this and choose to earn below the income threshold.
- Senator Rick Scott, Chairman of the Senate Aging Committee, has introduced companion legislation in the Senate.