Bob Kerrey: “I support the elimination of the earnings test from 65 to 69, and believe the amendment I have offered would be a…”

“I support the elimination of the earnings test from 65 to 69, and believe the amendment I have offered would be a positive conforming change that will make it clear, regarding Social Security at age 65, there is no longer a requirement to be retired. That is what the current law says, you have to be retired. ``Retirement benefit at normal retirement age'' is how it is described in the statute. My amendment would conform the changes we are making in H.R. 5 to alter the program that reduces benefits according to income from one that would no longer offer that reduction to beneficiaries. Beneficiaries evaluate their income versus what Social Security is going to do all the time. One of the interesting things about the program is to observe that nearly 80 percent of beneficiaries take an early benefit. They have a 20-percent reduction in benefits. The baby boomers may come in here 15 years from now and want to get rid of that, for all I know, but right now it is a 20-percent reduction in benefits. Mr. President, 80 percent of Americans, when they become eligible for the old age benefit, will opt to take that 20-percent reduction--not all of them are doing it at 62--some are taking a smaller cut in benefits at 63 or 64--because they calculate the benefits will be greater than retiring at 65 if they survive for 10 years.”