Fedweek

The Senate has joined the House in approving legislation to repeal the earnings test that reduces Social Security benefits for those aged 65-69 who continue receiving wages or self-employment income while drawing those benefits. President Clinton has said he will sign the bill, which must now go back to the House for technical amendments. The current limit means a loss of $1 in Social Security benefits for every $3 earned above $17,000 a year. The legislation would not affect a more stringent earnings test applying to those aged 62-64 and drawing Social Security benefits. There is no earnings test at age 70 and above.