The retirement earnings test, which sets income thresholds and temporarily withholds part of benefits once those limits are exceeded, affects millions of Americans collecting Social Security before full retirement age. The rule, which dates back to 1935, applies to retirees who earn up to $24,480 from a job without triggering a reduction. For every $2 earned above this limit, the Social Security Administration withholds $1 in benefits. The test operates as a functional tax on work for people who claimed early. Despite this, many retirees are unaware of the policy when they return to the workforce. The provision costs the Social Safety Administration roughly $70 million annually to administer and often triggers improper payment errors. The Senior Citizens’ Freedom to Work Act, introduced by Sen. Rick Scott (R-Florida) and Rep. Greg Murphy (R.-N.C.), would repeal the retirement earnings rule and allow retirees to earn unlimited income without facing benefit reductions.