Statement of Administration Policy: H.R. 2684 - Senior Citizens' Right to Work Act of 1995

(House)
(Bunning (R) KY and 96 cosponsors)

The Administration welcomes congressional action to increase the Social Security Earnings Test. Currently, retired workers between the age of 65 and 69 who earn wages above the exempt amount have their Social Security benefit reduced by $1 for every $3 in earnings. This reduction in benefits discourages work by senior citizens who are able and willing to stay in the workforce. Raising the earnings test will increase the standard of living of the elderly and help the Nation's economy by increasing the supply of workers to the labor force. Over 900,000 Social Security beneficiaries lose some or all of their benefits as a result of the earnings test that applies at age 65.

While the Administration strongly supports increasing the Social Security earnings limit for senior citizens, its full support is contingent on accomplishing this in a deficit-neutral manner. One item of particular concern is that H.R. 2684 now achieves deficit neutrality in part by a provision that saves $3 billion in the Supplemental Security Income (SSI) program which is already assumed in balanced budget proposals put forth by both the Administration and the Congress. Using a proposal as an offset in this bill that both the Administration and the Congress have earmarked to reduce the deficit simply exacerbates the deficit reduction problem and is therefore not appropriate. The Administration recommends that the bill achieve deficit neutrality without including the savings from the SSI provision.

The Administration also has misgivings about some of the other provisions in the bill and their impact on benefit recipients. We would like to work with the Congress in these areas. For example, the Administration wants to explore options with Congress for modifying the attorneys' fees provision.in ways that still meet the Administration's REGO II goals. In addition, with respect to the provisions of H.R. 2684 concerning continuing disability reviews, the Administration would not object to a mechanism that retains the oversight of-the Executive Office and the appropriations committees that is inherent in the annual appropriations process. Such a mechanism could be similar to that used for the Internal Revenue Service by the 1990 Budget-Enforcement Act.

H.R. 2684 would affect both direct spending and receipts; therefore, it is subject to the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act of 1990. Office of Management and Budget scoring of this legislation is under development.