A bill to amend title II of the Social Security Act to increase the amount of outside earnings which (subject to further increases under the automatic adjustment provisions) is permitted each year without any deductions from benefits thereunder, and to revise the method for determining such amount.

States that the annual limitation applicable with respect to any taxable year, in the case of any individual eligible for old-age, survivors, and/or disability benefits under the Social Security Act, shall be the amount by which the sum of the product of $250 multiplied by the number of months in such year, and the maximum total amount of the monthly insurance benefits payable to any person for months in such year by reason of the applicable provision of the Social Security Act exceeds the total of the monthly insurance benefits to which such individual is entitled under the Act for months in such year.

Provides that, for purposes of the Act, the 'monthly earnings limitation' applicable to any individual with respect to any month in a taxable year shall be the applicable annual limitation determined for such individual under this Act, divided by the number of months in such year. (Amends 42 U.S.C. 203)