Social Security benefits replace, in part, earnings lost to a beneficiary or family
because of the beneficiary’s retirement, disability, or death. We use the ET to measure
extent of a beneficiary's retirement and determine the amount, if any, to be deducted
from monthly benefits of the wage earner and auxiliaries, and
earnings of auxiliary and survivor beneficiaries to determine the amount of benefits
payable to them.
The law provides for a two-tier earnings test:
One test for beneficiaries under full retirement age (FRA), and
One test for beneficiaries who attain FRA during the year.
Earnings test does not apply to individuals at or above FRA.
For information on FRA, see RS 00615.003.