Senior Citizens’ Freedom to Work Act of 2026

Summary

Eliminates the Social Security and Railroad Retirement earnings-based benefit reductions known as the Retirement Earnings Test so that monthly benefits are no longer reduced when retirees earn income above statutory thresholds. Makes conforming edits across the Social Security Act and the Railroad Retirement Act to update cross‑references and statutory language. All changes apply to taxable years beginning after the date of enactment.

Key Points

• Eliminates the earnings‑based reductions to monthly Social Security retirement benefits (the Retirement Earnings Test).
• Repeals multiple subsections of the Social Security Act that implemented earnings‑related benefit deductions and redesignates remaining text.
• Makes conforming edits across the Social Security Act to update cross‑references and statutory language.
• Amends the Railroad Retirement Act to remove parallel deductions from railroad retirement benefits for earnings and adjusts cross‑references.
• Applies to taxable years beginning after the date of enactment.
• Does not create a new benefit program or appropriate funds in the statutory text, but will affect benefit calculations and federal outlays.
• Requires administrative updates by agencies to reflect new statutory numbering and to stop applying earnings‑based reductions.
• Likely increases net benefit payments to working retirees compared with current law.

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