Senate okays bill to increase
earnings test requirement
By Rhealyn C. Pojas
The Senate passed a bill that increases the earnings test requirement from $3,000 to $12,000 per quarter during the 5th regular session of the 10th Olbiil Era Kelulau on Wednesday.
The test only applies to people who are below the normal retirement age and it simply determines whether the person who is receiving benefit is retired or otherwise dependent on the Social Security benefit. [restrict]
The Senate cited in the bill that the Social Security system requires updating in order to comport with the current economic trends of the country and address other issues faced by the citizens.
The passed bill, which is also known as the Senate Bill No. 10-108, stipulated that the person who is receiving retirement benefits shall have his or her “retirement benefits reduced to $1 for each $3 of wages earned during a quarter in excess of $12,000.”
Meanwhile, those who are entitled to a surviving spouse benefit after December 31, 2013 shall also have it reduced by $1 for every $3 earned in a quarter in excess of $12,000.
The bill was introduced by Senators Mark. U. Rudimch, Kerai Mariur, Hokkons Baules, John B. Skebong, Aric M. Nakamura, Frank Kyota, Stevenson J. Kuartei and Phillip P. Reklai. [/restrict]