The SSA announced in July that it had made back payments to some 2.8 million persons after the GPO and WEP were repealed. Image: OmaB/Shutterstock.com
By: FEDweek StaffSeveral key figures are increasing for 2026 in the Social Security program affecting both current employees and retirees.
For the former group, the 6.2 percent Social Security payroll tax will apply on up to $184,500 of earnings, up from $176,100. For FERS employees, that tax cuts off at that threshold and from there on they pay only the civil service retirement contribution (which is 0.8, 3.1 or 4.4 percent, depending on when they were hired).
Above the cutoff CSRS Offset employees continue to pay their same 7 percent total (6.2 into Social Security and 0.8 into the federal retirement fund) but all the money after that point goes into the federal retirement fund instead. Employees under “pure” CSRS don’t pay the Social Security payroll tax.
For those drawing Social Security benefits, the earnings test applying to beneficiaries aged 62 through their “full” retirement age (65-67, depending on year of birth; 67 for those retiring in 2026), will rise from $23,400 to $24,480. Those beneficiaries lose $1 in Social Security benefits for every $2 in earnings through employment or self-employment earnings above the limit.
A separate earnings test applies only to earnings for months in the year an individual reaches full retirement age but prior to the individual attaining that age. One dollar in benefits will be withheld for every $3 in earnings above $65,160, up from $62,160. There is no limit on earnings beginning the month an individual attains full retirement age.
As a reminder, CSRS annuities no longer are affected by the government pension offset or windfall elimination provision, which were repealed by a late 2024 law, retroactive to the start of that year.
The GPO had reduced, and in many cases eliminated, spousal or survivor Social Security benefits of those who receive an annuity from a system that does not include Social Security, such as the federal CSRS system and some state and local government systems. The WEP had reduced the personally earned Social Security benefits of such persons based on other earnings for which they did pay into Social Security—unless those earnings exceeded for at least 30 years an annual threshold.
The SSA announced in July that it had completed recalculating benefits and had made back payments to some 2.8 million persons affected by one or both of those reductions.
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See also,
Calculating Service Credit for Sick Leave At Retirement
FERS Supplement vs The 10% Pension Bonus
How Your FERS, Social Security and TSP Payments Get Taxed
