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Exempting COVID-19 Premium Pay from Social Security Retirement Test

This act aims to assist retirees who worked in essential sectors during the COVID-19 pandemic. It ensures that any premium pay received for this work will not reduce their Social Security retirement benefits. This means retirees could earn extra income without fear of their benefits being cut.
Key points
Premium pay for essential work performed during the COVID-19 emergency period (March 13, 2020, to December 31, 2021) will not count towards the Social Security retirement earnings limit.
Employers must verify and report premium pay disbursed and inform eligible employees about their option to exclude these earnings from the Social Security earnings test.
The law intends to financially support retirees who undertook essential work during the pandemic, allowing them to maintain their full retirement benefits.
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Additional Information
Print number: 117_S_3659
Sponsor: Sen. Collins, Susan M. [R-ME]
Process start date: 2022-02-16