H.R. 7120: Purple Heart Freedom to Work Act

This bill, known as the Purple Heart Freedom to Work Act, proposes changes to the Social Security Act specifically aimed at helping Purple Heart recipients who are receiving disability benefits. Here’s a summary of what the bill intends to do:

Disability Benefit Offset for Purple Heart Recipients

The bill introduces a provision that would allow individuals who have received a Purple Heart and are entitled to Social Security disability benefits to continue receiving these benefits even if they work. Specifically, the bill states:

• If a Purple Heart recipient has a disability linked to their combat injury, they can keep their benefits without losing eligibility when they exceed certain earnings thresholds.
• However, their benefits will be reduced based on their earnings:
  • For every $4 earned above a certain amount, their benefit would be reduced by $1.
  • The benefit cannot be reduced below $0, meaning they will not owe any money back if they exceed the earnings threshold.

Conforming Amendments

The bill also includes amendments to ensure that these changes are aligned with existing laws regarding Social Security benefits. This means that other related sections of the law would be updated to reference these new provisions for Purple Heart recipients.

Application of Higher Substantial Gainful Activity (SGA) Amount

The bill proposes to increase the earnings limit for Purple Heart recipients regarding what is considered Substantial Gainful Activity (SGA). This would allow these individuals to have a higher level of earnings while still qualifying for their disability benefits. The new wording aims to include Purple Heart recipients in the categories of individuals who can earn higher amounts while still retaining their benefits.

Effective Date

The changes made by this bill would take effect for benefits payable for months beginning six months after the bill is enacted.

Relevant Companies

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