Earnings Test Also Targeted

Shaw also proposed in his bill to eliminate the Social Security earnings test that reduces Social Security benefits by $1 for every $2 earned above a threshold ($12,000 this year) for beneficiaries who continue working after drawing benefits before their “full” Social Security retirement age (65 and six months this year). The proposals, which mirror those Shaw has made in the past, came as part of a general Social Security overhaul measure that includes a private investment account feature. Shaw is no longer chair of the House Social Security subcommittee but is still a major player on the program.