Earnings Test

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Earnings Test

In Social Security in the United States, a test to determine whether a person under normal retirement age (between 62 and 67) is eligible for reduced benefits. The test sets two levels of income (which vary year to year); if one's own income is above the lower level but below the upper level, one may receive benefits at a $1 reduction for every $2 in wages. One receives full benefits in later years after one has passed proper retirement age.
References in periodicals archive ?
The complication that arises in applying the earnings tests discussed above is that, in many cases, both spouses in a marriage have their own independent earnings records upon which Social Security benefits can be based.
t]) affects the benefit calculation in three ways: First, there is age of eligibility for OA benefits; second, an individual who claims OA benefits before reaching NRA (and after ERA) will receive reduced benefits for early claiming and an individual who delays claiming until after reaching NRA will have her/his benefits increased by actuarial adjustment factors; third, earnings tests for OA benefits are age specific.
A frequent topic discussed in this literature is the effect of Social Security earnings tests on labor force participation.
The Senior Citizens' Freedom to Work Act (SCFWA) of 2000 repealed the Social Security earnings tests for individuals between normal retirement age (NRA, which currently ranges from age 65 to 67 depending on year of birth) and age 70.
The multiple regression framework also shows how democracies and nondemocracies are quite similar in terms of their use of retirement tests, earnings tests, or in their splitting of the payroll tax between employer and employee.
These older workers can now continue to work beyond their NRA and receive their full SSA retirement benefits, without suffering the prior "take-back" effects flowing from the repealed earnings tests for eligibility.
His domestic agenda, as he outlined it before the ASAE audience, is to promote choice and opportunity through * education and educational flexibility, * home ownership for low-income people, * business enterprise zones, * anti-discrimination laws, * community opportunity areas, * social security earnings tests, and * anti-crime efforts.
The earnings tests are made on the basis of absolute numbers, regardless of whether either or both are positive (profits) or negative (losses).