Trent Lott: “I am reintroducing the Older Americans Freedom To Work Act and request my colleagues' support. This legislation would…”

“I am reintroducing the Older Americans Freedom To Work Act and request my colleagues' support. This legislation would remove the limitation on the amount of outside income which Social Security beneficiaries, who have reached retirement age, may earn without incurring a reduction in benefits. It would abolish the onerous earnings test and allow senior citizens to work without being penalized. As you know, the Social Security retirement earnings test reduces benefits to persons between ages 65 and 69 who earn more than $13,500. These reductions amount to $1 in reduced benefits for every $3 in earnings above the limit. This limitation is unfair and poses a serious threat to the labor work force. Demographers tell us, that between the years 2000 and 2010, the baby boom generation will be in their retirement years. With fewer babies being born, this Nation is looking at a severe labor shortage. We need the skills, wisdom, and experience of our older workers, and this measure will encourage them to remain in the labor force. Elimination of the retirement earnings test begins the process of providing employment opportunities for older Americans without punishing them for their efforts. In the 1930's when the earned income limit was devised, encouraging senior citizens to leave the workplace was seen as a positive act, designed to increase job opportunities for younger workers. Today, with our shrinking labor force, such a policy is senseless.”