FOR IMMEDIATE RELEASE, Contact: (202) 225-9263
February 8, 2000
No. SS-10
Congressman E. Clay Shaw, Jr., (R-FL), Chairman, Subcommittee on Social Security of the Committee on Ways and Means, announced today that the Subcommittee will hold a hearing on improving Social Security work incentives. The hearing will take place on Tuesday, February 15, 2000, in room B-318 of the Rayburn House Office Building, beginning at 10:00 a.m.
In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. Witnesses will include academics and policy experts who have studied Social Security work disincentives, including the current Social Security earnings test; other witnesses will include seniors affected by this earnings test. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.
BACKGROUND:
Social Security has included a retirement earnings test since the 1930s. Under this provision, working seniors with earnings above a certain threshold lose part or all of their Social Security benefits in the year of the earnings.
In calendar year 2000, recipients aged 65 (currently the normal retirement age) through 69 can earn up to $17,000 without penalty; seniors earning more than that amount lose $1 of benefits for every $3 of earnings above the limit. Some people believe that this provision discourages work, especially among seniors who reach the normal retirement age. A separate earnings test applies to beneficiaries under the age of 65; which reduces benefits by $1 for every $2 of earnings above $10,080 in 2000.
The aging of the population has implications for productivity and economic growth. Providing seniors with the appropriate incentives and opportunities to work will be important to the future prosperity of the country.
In announcing the hearing, Chairman Shaw stated: "Welfare Reform and the new Ticket to Work law cleared the path to work for millions of poor parents and disabled individuals. This hearing will investigate remaining Social Security barriers to work, including the earnings penalty affecting some 400,000 hardworking seniors each year. Especially in a strong economy, Social Security rules should encourage seniors' contributions, not force them to the sidelines."
FOCUS OF THE HEARING:
The hearing will focus on work disincentives in Social Security programs, including the current Social Security earnings penalty.
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Any person or organization wishing to submit a written statement for the printed record of the hearing should submit six (6) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, with their name, address, and hearing date noted on a label, by the close of business, Tuesday, February 29, 2000, to A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Subcommittee on Social Security office, room B-316 Rayburn House Office Building, by close of business the day before the hearing.
FORMATTING REQUIREMENTS:
Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.
1. All statements and any accompanying exhibits for printing must be submitted on an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, typed in single space and may not exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.
2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.
3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.
4. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers where the witness or the designated representative may be reached. This supplemental sheet will not be included in the printed record.
The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press, and the public during the course of a public hearing may be submitted in other forms.
The Committee seeks to make its facilities accessible to
persons with disabilities. If you are in need of special accommodations, please
call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business
days notice is requested). Questions with regard to special accommodation needs
in general (including availability of Committee materials in alternative
formats) may be directed to the Committee as noted above.