Now with the repeal, those affected members can earn as much as they can and not have their SS benefits reduced. "While members should take advantage of the new law, they should also be mindful that their higher earnings and/or SS benefits may result in part of their SS benefits being subject to federal income taxes," cautions Counsel Bill Rehrey.

According to the Internal Revenue Service, your SS benefits could be taxed federally if one half of your SS benefits and all of your other income, including tax exempt interest, exceeds a $25,000 threshold. If married and filing jointly, your joint income and one-half of your combined SS benefits can't exceed $32,000. Once over the $25,000/$32,000 thresholds, then some of your SS benefits may be included as taxable income on your federal tax return.

Usually no more than 50% of your SS can be taxed. However, if half of your SS and other income exceeds $34,000 ($44,000 if married filing jointly), then up to 85% of your SS benefits could be subject to federal taxes.

"It's quite possible that even though a portion of one's SS benefit is included in taxable income, any resulting increase in federal taxes would be much less than eliminating benefits entirely under the old earnings limit," points out Rehrey. "Again, retirees, helped by the repeal, should at least be aware of this now, before next year."