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Warren Real Estate expands to the Albany market
ITHACA — Ithaca–based Warren Real Estate is venturing east with a newly opened office in the Capital region town of Guilderland. The new office continues the firm’s expansion, which until now has headed west and south of Warren’s Ithaca base. As with its other expansions, the idea originally came from one of Warren’s agents, who […]
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ITHACA — Ithaca–based Warren Real Estate is venturing east with a newly opened office in the Capital region town of Guilderland.
The new office continues the firm’s expansion, which until now has headed west and south of Warren’s Ithaca base.
As with its other expansions, the idea originally came from one of Warren’s agents, who suggested the market would be a good fit for the agency, Bryan Warren, president and principal broker at Warren Real Estate, says.
“She has been doing quite a bit of business in the Albany market,” he says of the agent. After due diligence, Warren says Guilderland seemed like the perfect fit for a new Warren Real Estate office.
“It’s very similar, I’ll say, to Ithaca,” he says.
Warren Real Estate got its start in Ithaca in 1953 with his grandmother, Ann Warren, at the helm. In its early years, the real-estate agency primarily served Cornell University and industries in the Ithaca area. It remained a family-only business until the late 1970s when Warren’s father, James, joined the business and began hiring other agents outside of the family.
James Warren grew the business throughout the next two decades, and Bryan Warren joined the agency in 1998, starting in sales before taking over when his father retired in 2005.
Warren Real Estate continued to grow, adding new agents and gradually spreading beyond the immediate Ithaca area.
Today, Warren Real Estate has eight offices — two in Ithaca along with locations in Corning, Elmira, Binghamton, Vestal, Watkins Glen, and now Guilderland.
“We purchased a building there,” Warren says of the new location. Located at 2555 Western Ave. in Guilderland, the building was once home to a wheelchair sales and service store. Warren remodeled the 3,000-square-foot space with 1,500 square feet of offices and conference room space for the real-estate agency and has 1,500 square feet available to lease. Ideally, a tenant in a complementary line of business, such as insurance, will rent the space, Warren says.
With the new space, Warren continued a couple of practices. The first was to buy a building because it’s important to invest in the community, he says. Additionally, about half of the real-estate agency’s locations are investment properties that include tenant space.
“We’re very well-funded and cautious to take on any debt,” Warren says, so he carefully considers any expansion projects before taking the next steps.
Warren Real Estate has already hired two new agents for the Guilderland office, while the agent who suggested the expansion is also based in that office. The agency is looking to hire more, but agents must be the right fit, says Tam Warren, regional VP and manager for the company.
Warren Real Estate is unique in a market that’s full of some small brokerages and a lot of big ones. As a mid-sized brokerage, Warren can offer the best of both worlds with all the technology, “but we’re still able to give that quality service and personalized touch,” she says.
The agency also focuses on the success of its agents, wanting them to pursue real estate as a full-time career and not just as a side hustle, she says.
“We have a full-time company trainer,” she notes, that helps agents expand their knowledge base to provide the best possible service. That’s especially important in changing times like now, she adds, when changes by the National Association of Realtors mean that beginning on Aug. 17, everyone working with a realtor will have to sign a buyer-representation agreement.
“We’re staying ahead of the curve with training,” Bryan Warren notes.
While the agency works hard to keep on top of technology and industry changes, one thing that doesn’t change is the way it does business. Warren Real Estate remains family owned and committed to supporting its agents.
Looking ahead to future expansion, Bryan Warren says he’s not ruling anything out, but doesn’t have any plans either.
“As any opportunity comes our way, we’ll consider it,” he says, adding, “We recognize bigger isn’t always better.”
The agency plans to host a ribbon cutting at the Guilderland office at a future date.
Warren Real Estate employs about 175 agents and handles more than $600 million in annual sales.
Commercial market remains on steady heading, banker says
SYRACUSE, N.Y. — The commercial real-estate market in Syracuse and surrounding areas remains stable post-pandemic, bucking the trend some other cities are seeing with increasing vacancy rates. The much-feared recession hasn’t happened, says Lindsay Weichert, senior VP and commercial group practice manager at Community Bank, and the market has avoided any big swings. Across the
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SYRACUSE, N.Y. — The commercial real-estate market in Syracuse and surrounding areas remains stable post-pandemic, bucking the trend some other cities are seeing with increasing vacancy rates.
The much-feared recession hasn’t happened, says Lindsay Weichert, senior VP and commercial group practice manager at Community Bank, and the market has avoided any big swings.
Across the nation, news headlines have decried vacant commercial spaces in urban areas, but Syracuse just isn’t seeing that, she says.
“Generally, it’s been fairly quiet,” Weichert says. There is some movement, much of it is businesses moving between locations, which isn’t impacting the overall vacancy rate.
According to the Downtown Committee of Syracuse’s Spring 2024 commercial occupancy report, the vacancy rate for Class A space is 22.37 percent, 11.7 percent for Class B accommodations, 39.64 percent for Class C space, and 79.36 percent for manufacturing space.
On the flip side, retail space saw an increase in occupancy, dropping its vacancy rate to 19.5 percent.
“We’re definitely starting to see more stores coming in than leaving,” Weichert says of downtown. According to the report, 12 businesses closed between September 2023 and April 2024, but 14 new businesses opened during the same period.
Downtown appears to be bustling, Weichert says, with increased foot traffic and full parking garages. She attributes that in part to more people returning to in-person work at the office following the pandemic.
Looking ahead, Weichert expects the arrival of Micron to have some significant impacts on the greater Syracuse market, with increased demand for commercial space and even more demand on an already competitive housing market.
“In Syracuse and Central New York, the multifamily market is very strong,” she says, adding that Syracuse is becoming one of the most competitive markets with rent growth of about 20 percent in recent years with a vacancy rate of just 1 to 2 percent.
A few class A projects in the region have achieved $3-per-square-foot rents, while the average rent is closer to $1.52 per square foot for all classes of apartments, Weichert says.
Area experts, including CenterState CEO, say the area needs to add 2,500 new housing units annually to meet the current demand, but the average is only 350 units right now.
With Micron coming to the area, population growth of anywhere from 75,000 to 100,000 people is projected, which will definitely crunch the market even more, Weichert says.
Much of the new developments have focused on higher-income tenants, but there is a growing need for workforce housing, she says. “That’s something I think we definitely need to focus on.”
Current higher interest rates may be combining with a wait and see approach that has delayed any real housing development activity so far, Weichert notes. “Once the shovels start, that’ll be a pretty good indicator it’s [Micron] really happening,” she adds.
Another area of growth the market needs to focus on for the future is the hospitality segment, Weichert advises.
“I would say pretty definitively … we do not have enough high-quality rooms here,” she says. With two hotels recently pulling out of the hospitality business to transform into apartments and student housing, the area has lost nearly 500 rooms it couldn’t afford to lose, she says.
“The university can’t solicit NCAA tournaments,” Weichert says. “We may find ourselves off the convention circuit [too].”
She praises the city’s and county’s efforts to head off the crisis by reinvesting occupancy tax dollars into funding opportunities to spur hotel development.
“Our local politicians are definitely trying to do a good job, to be proactive,” she says.
Ashley McGraw expands into Boston area with acquisition
SYRACUSE — Syracuse–based Ashley McGraw Architects, D.P.C. has expanded its footprint into the New England region, acquiring studioMLA Architects of Brookline, Massachusetts, near Boston. Founded in 2006, studioMLA Architects — a 15-person architecture and landscape design firm — focuses on the design of early-education facilities along with nature-inspired playscapes for young children. The acquisition closed
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SYRACUSE — Syracuse–based Ashley McGraw Architects, D.P.C. has expanded its footprint into the New England region, acquiring studioMLA Architects of Brookline, Massachusetts, near Boston.
Founded in 2006, studioMLA Architects — a 15-person architecture and landscape design firm — focuses on the design of early-education facilities along with nature-inspired playscapes for young children.
The acquisition closed on July 1, Derek Goodroe, director of marketing at Ashley McGraw, tells CNYBJ in an email. The firm didn’t include any financial details of the acquisition agreement in its announcement.
As part of the acquisition, studioMLA Architects will become the early-childhood education studio within Ashley McGraw Architects. In addition, Mike Lindstrom, studioMLA founder, will become the seventh partner of Ashley McGraw.
“As we emerged from the challenges of COVID, a vital component of our strategic plan was to build a more resilient business by diversifying our markets,” Matthew Broderick, president and CEO of Ashley McGraw Architects, said in a statement. “We aimed to build one of the best community-focused design practice in the Northeast and Mid-Atlantic, expanding our capacity to make an impact and creating more opportunities for staff. This strategic acquisition provides Ashley McGraw a Boston–based office and a national practice centered on early childhood education, expanding our demographic diversity to include a much younger age group and anchoring our geographic diversity in New England.”
“To acknowledge studioMLA’s national reputation and longstanding partnerships,” the firm will use a dual logo during the transition, Goodroe tells CNYBJ. As the integration progresses, the studioMLA name will “gradually phase out, culminating in full alignment” under the Ashley McGraw Architects brand and logo, he adds.
As the founding principal of studioMLA Architects, Lindstrom has more than 30 years of experience and specializes in the design of play and learning environments for children. He has been a member of the National Association for the Education of Young Children (NAEYC) and regularly presents at the group’s annual conferences nationwide.
“We are excited about the new opportunities and resources that this strategic partnership provides to our clients and to the studioMLA team,” Lindstrom said in reaction to the acquisition. “Given the similarities in cultures and shared focus on high-quality design, I anticipate a seamless transition and look forward to a host of new possibilities.”
The acquisition furthers Ashley McGraw Architects’ geographic footprint in the Northeast and Mid-Atlantic, the firm said. The new Boston–area office joins the firm’s headquarters in Syracuse and its office in Washington, D.C. to bring Ashley McGraw Architects’ total employee count to 79.
Kirk Park overlook closed for kayak/canoe launch construction
Should reopen in September SYRACUSE — The overlook at Kirk Park in Syracuse is closed temporarily for construction of a kayak and canoe launch. The closure was scheduled to begin on July 15 with an anticipated reopening in September, the City of Syracuse said in announcing the project on July 9. The Kirk Park kayak
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SYRACUSE — The overlook at Kirk Park in Syracuse is closed temporarily for construction of a kayak and canoe launch.
The closure was scheduled to begin on July 15 with an anticipated reopening in September, the City of Syracuse said in announcing the project on July 9.
The Kirk Park kayak and canoe launch will be located at the end of the Creekwalk near Hunt Avenue and will serve as one of three access points for water enthusiasts, providing opportunities for kayaking and canoeing on Onondaga Creek.
The city’s department of engineering is the lead agency on the project, which is valued at under $1 million with JMR Excavation listed as the contractor, per the City of Syracuse website.
During the reconstruction period, the overlook area will undergo “significant upgrades,” including the construction of an American Disability Act (ADA)-compliant launch ramp. The project will also include enhanced safety features such as the installation of updated safety rails, lockable gate, and signage for improved visibility and security.
The launch project also encompasses a stilling basin designed to provide safe entry and exit from the creek.
The nearby portion of the Creekwalk is expected to remain open during construction with “minimal interruptions.” Construction vehicles and materials will be stored between the Hunt Avenue parking lot and the creekbank, the city said.
Construction of grape-research lab in Geneva to start this fall
GENEVA — Cornell University says that construction of the National Grape Improvement Center at the Cornell AgriTech campus in Geneva is expected to start this fall. Cornell and the U.S. Department of Agriculture’s (USDA) Agricultural Research Service (ARS) broke ground for construction on June 26, the office of U.S. Senate Majority Leader Charles Schumer (D–N.Y.)
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GENEVA — Cornell University says that construction of the National Grape Improvement Center at the Cornell AgriTech campus in Geneva is expected to start this fall.
Cornell and the U.S. Department of Agriculture’s (USDA) Agricultural Research Service (ARS) broke ground for construction on June 26, the office of U.S. Senate Majority Leader Charles Schumer (D–N.Y.) said in a separate announcement that same day.
Cornell anticipates the project will be completed in early 2027.
The project is happening a few years after Schumer secured a nearly $69 million federal investment for it, the senator’s office said in announcing the project.
The upcoming facility — which will cover more than 70,000 square feet — will help establish Geneva and the Finger Lakes as the “center of innovation and [research and development (R&D)] for wine and viticulture,” Schumer’s office said.
It will bring new technology and top scientists to ensure New York’s and America’s wine grapes are the “highest quality, hardy against diseases, and thrive in diverse climate conditions in order to produce wines that will be renowned worldwide,” the office added.
“From the wines made here on Seneca Lake to concords grown for juice & jelly, this region has time and time again proven itself as the leader in innovation when it comes to America’s grape culture,” Schumer said in the announcement. “This massive 70,000 square foot lab will help cement the Finger Lakes legacy within the global wine industry and marks the start of a new chapter for something greater. In 2018, I promised to push for this center and secured the $70 million federal investment to make today possible. Now with shovels hitting the ground we can finally pop the cork to say the future of America’s wine will flow through the Finger Lakes.”
The facility will house and enhance the USDA’s Grape Genetics Research Unit, which for years was limited by its small, leased space from Cornell, Schumer’s office said. It’ll also house the USDA’s Plant Genetic Resources Unit, which will improve the cultivation of other vital New York crops like apples and tart cherries and new crops like hemp.
Schumer’s office cited the National Association of American Wineries’ 2022 National Economic Impact Study of the Wine Industry as indicating the New York wine industry has created 92,731 jobs, generating $5.64 billion in annual wages, and contributing nearly $15 billion in direct economic impact to New York state.
NYSDOT closes Spencer Street bridge over I-81
Part of project on Syracuse’s North side, Inner Harbor areas SYRACUSE — The Spencer Street bridge over Interstate 81 (I-81) in Syracuse is now closed, and a newly constructed bridge will open next summer. The closure is necessary to construct a longer bridge
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SYRACUSE — The Spencer Street bridge over Interstate 81 (I-81) in Syracuse is now closed, and a newly constructed bridge will open next summer.
The closure is necessary to construct a longer bridge that will accommodate the expanded future Business Loop 81 (existing I-81) as part of the I-81 viaduct-replacement project, the New York State Department of Transportation (NYSDOT) said in its announcement.
The bridge closure is part of the third construction contract of the I-81 viaduct-replacement project that is targeting Syracuse’s North side and Inner Harbor area.
New York State awarded the nearly $219 million contract to Salt City Constructors, LLC, per the office of Gov. Kathy Hochul.
NYSDOT says the third contract includes the construction of new on and off ramps to North Clinton Street from southbound I-81 (future Business Loop 81). It also involves a new bridge that will connect Bear Street to future Business Loop 81, improving access to the North side and Inner Harbor.
The work will also involve replacing three bridges at Bear, Court, and Spencer Streets, which will be longer to accommodate the expanded future Business Loop 81.
All three new bridges will include sidewalks, while shared-use paths will be included on the Court and Spencer Street bridges to accommodate both bicyclists and pedestrians, connecting them from the North side to the Inner Harbor.
Additional contract elements include more than 700 new trees, decorative street lighting, improved access to the Empire State Trail, new traffic signals and safety improvements at the on-ramp from Bear Street to Interstate 690 westbound, NYSDOT said.
In its announcement, NYSDOT advised drivers of the signed detours associated with the bridge closure.
Westbound traffic will be directed to North State Street, north on Lodi Street, west on Court Street, south on North Clinton Street, and west on Spencer Street.
Eastbound traffic will be directed to North Clinton Street, east on Court Street, south on Lodi Street, south on North State Street, and east on Spencer Street.
To access I-81 southbound, motorists traveling westbound on Spencer Street should follow the signed detour to North State Street, north on Lodi Street, west on Court Street, south on North Clinton Street, east on West Division Street, south on Genant Drive, to I-81 southbound.
Labrador Lumber upgrades infrastructure with NYSEG grant
BERKSHIRE — Labrador Lumber Company, Inc. — based in the town of Berkshire in Tioga County — has received a $57,667 Agriculture Capital Investment Incentive Program Grant from New York State Electric & Gas (NYSEG) to help upgrade its electrical infrastructure and add new jobs, NYSEG announced. The upgrades will support economic growth in Tioga
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BERKSHIRE — Labrador Lumber Company, Inc. — based in the town of Berkshire in Tioga County — has received a $57,667 Agriculture Capital Investment Incentive Program Grant from New York State Electric & Gas (NYSEG) to help upgrade its electrical infrastructure and add new jobs, NYSEG announced.
The upgrades will support economic growth in Tioga County by providing jobs and expanding local business operations.
“We understand the importance of investing in the communities in which our employees live and work,” NYSEG Manager of Economic Development Joe Sayre said in a news release. “By supporting Labrador Lumber, we’re contributing to the community development and economic prosperity.”
With the electrical infrastructure upgrades, Labrador Lumber will increase its load capacity, allowing the business to revitalize a vacant industrial sawmill site and add finished milling to its operation.
The grant-funded project will retain four jobs at Labrador Lumber and create 3-5 new jobs.
“NYSEG made the growth and expansion of our business possible,” Labrador Lumber co-owner Shannon Etienne said. “Their involvement in the community through this grant is truly remarkable.”
Labrador Lumber is a provider of wood products for log homes. It supplies wood products made with sustainable practices by using every part of the raw log with no waste. Customers include log homebuyers, builders, general contractors, and do-it-yourselfers.
“We are happy to see NYSEG investing in Tioga County,” Martha Sauerbrey, Tioga County Legislature Chairwoman, said in the release. “Supporting local businesses in our community promotes a stronger and healthier economy.”
Through the Agriculture Capital Investment Incentive Program, NYSEG provides agricultural businesses with financial support toward electric-related infrastructure improvements on company-owned or customer-owned equipment up to $100,000. In many instances, the goal of the program is to help the agricultural industry by converting single-phase to three-phase power to grow businesses and install new technology.
New York State Electric & Gas Corporation is a subsidiary of Avangrid, Inc., an Orange, Connecticut–based sustainable-energy company. NYSEG operates about 35,000 miles of electric distribution lines and 4,500 miles of electric transmission lines across more than 40 percent of upstate New York. It also operates 8,150 miles of natural gas distribution pipelines and 20 miles of gas transmission pipelines. It serves 894,000 electricity customers and 266,000 natural gas customers.
OPINION: New York State’s Raise the Age Policy is Putting Lives at Risk
New York’s effort to relieve burdens on the criminal-justice system by “raising the age” of criminal responsibility is a flawed and failing policy. Young offenders committing violent crimes face little to no repercussions and are emboldened by a policy that has fallen woefully short of delivering the “reform” it was supposed to provide. For example,
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New York’s effort to relieve burdens on the criminal-justice system by “raising the age” of criminal responsibility is a flawed and failing policy. Young offenders committing violent crimes face little to no repercussions and are emboldened by a policy that has fallen woefully short of delivering the “reform” it was supposed to provide.
For example, consider Eric Chapman, Jr., an 18-year-old with a long criminal history recently chronicled by the Times Union. Chapman has been arrested for crimes like assault, robbery, and weapon possession, and he was given little more than a slap on the wrist by family court judges for each of those offenses. A combination of ineffective rehabilitation programs and laws designed to make it as difficult as possible to prosecute youth offenders clearly failed Chapman, like many others; now he is accused of murdering a young man and critically wounding another when he was 17 years old.
The unfortunate reality is family court is not the proper place to adjudicate serious crimes like armed robbery and criminal possession of a weapon. Attempts by prosecutors to keep these cases from being moved out of family court are repeatedly thwarted by convoluted policies that do not clearly define what belongs there and what should stay in criminal courts. Why? Who do these policies, as they stand, really serve? These measures do not protect the public, and they certainly don’t protect individuals like Eric Chapman, who is on a path of violence that rarely ends well.
For these reasons, the Assembly Minority Conference has offered a number of solutions. Our plan to fix “Raise the Age” includes the following proposals:
• Requiring any violent felony offense — especially gang assault and criminal possession of a weapon — committed by a 16-year-old or 17-year-old adolescent offender to be maintained in the youth part of criminal court unless all parties agree to remove the case to family court;
• Expanding the “circumstances” preventing a non-violent felony case from being moved to family court, removing the current “extraordinary circumstances” threshold that only applies to “one in 1,000 cases”;
• Amending Criminal Procedure Law and the Family Court Act to ensure judges, prosecutors and defense counsel can access documents pertaining to arrests and juvenile delinquency proceedings;
• Requiring the victim of a crime committed by a person under the age of 18 to be notified of the outcome of the case; and
• Including the possession of a loaded firearm as one of the requirements that permits an adolescent-offender defendant to be tried in the youth part of criminal court and not escape criminal responsibility by being removed to family court or juvenile probation intake.
There are plenty of times when it makes sense for an individual to be tried outside traditional criminal courts. In order to reduce instances where young people are incarcerated, which will have major impacts on the rest of their lives, sometimes family court is the proper path to justice. However, 16-year-olds and 17-year-olds firing weapons at each other in the street do not qualify for that lenience, and everybody knows it. By the end of high school, there is little doubt armed robbery is wrong.
These laws do not make sense, and they’re not working. We must fix these ill-conceived laws and protect those who cannot protect themselves. If we don’t, we will continue to see the devastating impact of cases like Eric Chapman’s.
William (Will) A. Barclay, 55, Republican, is the New York Assembly minority leader and represents the 120th New York Assembly District, which encompasses all of Oswego County, as well as parts of Jefferson and Cayuga counties.
OPINION: Fractional HR Support: the Benefit of HR Outsourcing
For business owners and executive leadership, we understand that turnover in your organization can be frustrating, especially in human resources (HR). Fractional HR support refers to the practice of outsourcing or utilizing part-time HR professionals or services rather than hiring full-time HR staff. There are several reasons why fractional HR support can be advantageous for
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For business owners and executive leadership, we understand that turnover in your organization can be frustrating, especially in human resources (HR).
Fractional HR support refers to the practice of outsourcing or utilizing part-time HR professionals or services rather than hiring full-time HR staff. There are several reasons why fractional HR support can be advantageous for businesses.
Cost-effectiveness: Hiring full-time HR staff can be expensive, especially for small and medium-sized businesses. Fractional HR support allows companies to access HR expertise without the financial burden of a full-time salary, benefits, and overhead costs.
Flexibility: This support offers flexibility in terms of the services provided and the duration of engagement.
Access to expertise: Fractional HR providers often bring a breadth of experience and expertise across different industries and HR functions. This can be beneficial for businesses that lack internal HR capabilities or need specialized knowledge for certain projects or initiatives.
Focus on core activities: By outsourcing HR functions, businesses can free up internal resources and focus on core activities that drive revenue and growth. This support allows companies to delegate administrative tasks and compliance responsibilities, enabling them to concentrate on strategic priorities.
Scalability: Fractional HR support can easily scale up or down based on business needs and fluctuations in workload. Whether it’s handling seasonal hiring spikes or supporting business expansion, fractional HR providers can adapt their services accordingly.
Risk mitigation: HR compliance is a complex and constantly evolving area, and non-compliance can result in legal issues and financial penalties. This support can help mitigate these risks by ensuring that businesses stay up to date with labor laws, regulations, and best practices.
Anthony LaPolla is president and CEO of Empower Business Strategies. Contact him at anthony@gowithempower.com.
Ask Rusty: Why is there a Social Security Earnings Limit?
Dear Rusty: I am age 62 and considering my retirement options and when I should do that to get the most benefits. I understand my full retirement age is 67, but what I don’t understand, and I hope you can answer, is why there is such a thing as the Social Security (SS) earnings limit?
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Dear Rusty: I am age 62 and considering my retirement options and when I should do that to get the most benefits. I understand my full retirement age is 67, but what I don’t understand, and I hope you can answer, is why there is such a thing as the Social Security (SS) earnings limit? I know that if I was to retire before age 67, my benefits would be reduced. But since I have been paying into SS for 45-plus years, and that money is technically money I have earned, why does the Social Security Administration (SSA) care if I make more than the earnings limit? It doesn’t affect them or my benefits. Can you tell me about the reasoning behind the earnings limit? I will, for many years after “retiring,” continue working in my field.
Signed: Working American
Dear Working American: This is a great question and, as a point of interest, our parent organization, the Association of Mature American Citizens (AMAC), advocates doing away with the Social Security earnings test which affects those collecting benefits before reaching their SS full retirement age (FRA). In AMAC’s view, it discourages people from working and, thus, paying Social Security taxes on their earnings. It is, after all, SS taxes from the earnings of working Americans which largely pays for the benefits provided to Social Security beneficiaries. Eliminating the restriction would tend to improve Social Security revenue and help ease Social Security’s current financial stress.
The reasoning behind the earnings test? Well, when Social Security was first enacted in the 1930s, the intent was that Social Security was for retired workers, meant to keep them from poverty in old age. The logic back then was that if people worked, they didn’t need Social Security to sustain them, so those who worked could not collect Social Security at all. The current rule, after many adjustments over the years, says that annual earnings for those who collect early SS benefits are limited. If each year’s earnings limit ($22,320 for 2024) is exceeded, the SSA will take away $1 in benefits for every $2 over the limit (FYI, the penalty is less severe in the year you attain FRA).
Historical accounts suggest that the reasoning behind the wording in the original Social Security Act — that “No person shall receive such old-age annuity unless . . . he is not employed by another in a gainful occupation” — was quite controversial, except for the fundamental thought that if individuals worked, they didn’t need Social Security. Over the ensuing decades, the rule has been softened to provide that only those who collect benefits before their full retirement age (FRA) would have a portion of their SS benefits offset by their work earnings. In any case, the earnings test, in its mitigated form, still persists today. FYI, H.R. 5193, the Senior Citizens Freedom to Work Act, was recently introduced in Congress proposing to repeal the SS earnings test but has not advanced in the legislative process since introduced in August 2023.
In any case, under current rules, if you continue working after your FRA, the earnings test will not apply to you. And, if you lose any benefits before your FRA due to the earnings test, when you reach your FRA, you’ll get time credit for any months that benefits were withheld, resulting in a slightly higher monthly payment after your full retirement age.
One final point: if you continue to work after starting your Social Security benefits and your recent earnings are higher than any of those in the inflation-adjusted 35 years used to originally calculate your benefit, your entitlement will be recalculated to give you credit for those higher recent earnings
Russell Gloor is a national Social Security advisor at the AMAC Foundation, the nonprofit arm of the Association of Mature American Citizens (AMAC). The 2.4-million-member AMAC says it is a senior advocacy organization. Send your questions to: ssadvisor@amacfoundation.org.
Author’s note: This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained, and accredited by the National Social Security Association (NSSA). The NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity.
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