Sponsors (2)
Introduced March 24, 2026 by Richard Lynn Scott · Last progress March 24, 2026
The bill removes work penalties so retirees can keep all earned income and clarifies rules for administrators, but it increases Social Security costs and may shift tax burdens or create rule interactions that could pressure program finances and affect some workers' net pay or benefit outcomes.
Seniors and railroad retirees can work after retirement and keep all earnings without reductions to their Social Security or railroad retirement benefits.
Seniors, retirees and administering agencies will have clearer rules because cross‑references and definitions are clarified, simplifying benefit administration and beneficiary understanding.
Removing the earnings test will modestly increase Social Security outlays, which could add pressure to program finances and risk future benefit reductions or higher taxes for taxpayers and beneficiaries.
Workers who are under full retirement age may pay more in Social Security taxes on earnings without offsetting benefit increases, reducing take‑home pay for some working households.
Some beneficiaries who timed work to optimize benefits may face unexpected interactions with other benefit rules (for example, benefit computation years), creating confusion or reducing expected benefits for those individuals.
Based on analysis of 2 sections of legislative text.
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.