Section 1 Short title
This Act may be cited as the “Senior Independence Act of 2023”.
Senior Independence Act of 2023
A BILL
To amend title II of the Social Security Act to increase the monthly exempt amount for individuals not attaining full retirement age, and for other purposes.
Sec. 2 Purpose and findings
Purpose— The purpose of this Act is to increase the base exemption used by the Social Security Administration in determining the annual earnings limit for early retirees before monthly benefits are reduced. This legislation would increase the annual earnings limitation to $30,000 (or $2,500 per month for less than full year calculations) for the year 2024 and adjusted for wage inflation in the following years as required by current law.
Findings— Congress finds the following:
Allowing early retirees to earn more while retaining their Social Security benefits will have no impact on the solvency of the program because, under current law, any reductions in benefits for excess earnings are returned to the beneficiary after attaining full retirement age through increased monthly benefits.
Increasing the earning limit for Social Security beneficiaries will result in the potential for increased collection of FICA taxes used to fund the program.
Sec. 3 Increase in monthly exempt amount for individuals not attaining retirement age
In general— Section 203(f)(8) of the Social Security Act (42 U.S.C. 403(f)(8)) is amended by adding at the end the following:
“(F) Notwithstanding any other provision of this subsection, the exempt amount which is applicable to an individual other than an individual described in subparagraph (D) shall be, for months in any taxable year ending after 2023 and before 2025, $2,500.”
Conforming amendments— Section 203(f)(8) of the Social Security Act (42 U.S.C. 403(f)(8)) is further amended—
in subparagraph (B)(ii)—
in the matter preceding subclause (I), by striking “the taxable year ending after 1993 and before 1995” and inserting “the taxable year ending after 2023 and before 2025”; and
in subclause (II), by striking “1992” and inserting “2022”.
Effective date— The amendments made by this Act shall apply with respect to months in taxable years ending in any calendar year after 2023.