Earnings Test
Earnings Test
Pursuant to Section 144 of the Social Security Act (the Act) found at 49 MIRC 144, recipients of retirement benefits who are under 62 and are working, the benefit amount shall be reduced by $1.00 for every $3.00 earned in a quarter in excess of $1,500. The adjustment in benefits will be applied as soon as practicable following the quarter in which the earnings were made and reported. No adjustment is made for claimants who have attained the age of 62 years.
Example
If a retiree earns a total of $2,000 for a quarter, while receiving a monthly retirement benefit of $300, the benefit shall be reduced during the 3-month period, beginning with the first month after the quarter in which the earnings were made and reported. The computation follows:
However, the application of Earnings Test shall be extended to 65 years for those retiring on March 6, 2017 and onward while all those who retired before March 6, 2017 will be grandfathered.