Congress Proposes Ending Social Security Penalties for Working Early Retirees
Washington, Tuesday, 28 April 2026.
Proposed this April, a new bill seeks to abolish the Social Security earnings test, allowing early retirees to earn unlimited income without benefit reductions and potentially easing labor shortages.
The Mechanics of the Proposed Legislation
Introduced in the Senate (S.4184) on March 24, 2026, by Senator Rick Scott (R-Fla.) and in the House (HR-8344) on April 16, 2026, by Representative Greg Murphy (R-N.C.), the Bicameral Senior Citizens’ Freedom to Work Act targets a Depression-era policy [1][2]. The U.S. Congress, the bicameral legislature of the federal government, frequently uses companion bills to expedite the legislative process [GPT]. The legislation, currently sitting with the Senate Committee on Finance and the House Committee on Ways and Means, seeks to entirely repeal the retirement earnings test (RET) [1][2]. This test currently reduces Social Security retirement payments for individuals who claim benefits before their full retirement age—typically between 66 and 67, depending on the year of birth—and choose to continue working [1]. As of late April 2026, no votes have been scheduled [alert! ‘Legislative calendars are subject to sudden changes, and committee vote dates were not explicitly confirmed for the future’][2].
Labor Market Dynamics and Retiree Behavior
The proposed repeal arrives at a critical juncture for the American labor force