Do 2026 SSDI rule changes modify the way average indexed monthly earnings (AIME) or primary insurance amount (PIA) are calculated?
Executive summary
The Social Security Administration’s formulas for AIME and PIA remain the same in structure for 2026: AIME is computed from indexed past earnings and PIA is the three-part formula applying 90%, 32% and 15% to AIME segments defined by annually adjusted bend points; for 2026 the bend points are $1,286 and $7,749 (the portions used in the PIA formula) [1]. Separate administrative determinations for 2026—like the retirement earnings test exempt amounts—were also published, but available sources do not report a fundamental statutory change in how AIME or PIA are calculated for new beneficiaries beyond the ordinary annual bend‑point adjustments [1] [2].
1. What exactly changed for 2026 — bend points moved, not formula rewritten
The key technical change for 2026 reported by the Federal Register is numeric: SSA computed new bend points by indexing the 1979 base amounts to the national average wage index, yielding 2026 bend points at $1,286 and $7,749 that partition AIME for the PIA calculation [1]. That is a routine, statutory annual update of thresholds; the underlying method—the three-segment formula applying fixed percentages (90%, 32%, 15%) to portions of AIME—remains in effect [1] [3].
2. How AIME is still determined — indexing past earnings and averaging highest years
Multiple sources summarize that AIME is derived by indexing a worker’s historical earnings to national wage growth, selecting the highest earning years (typically up to 35 years), summing them and dividing by the relevant months to create an average indexed monthly earnings figure [4] [5]. The 2026 materials do not describe any procedural change to that indexing-and-averaging step; they focus on publishing the bend points and other annual determinates [1].
3. PIA mechanics stayed constant — percentages and progressive structure unchanged
Authoritative descriptions reiterate that PIA is the sum of three separate percentage applications to AIME segments—90% of the first segment, 32% of the middle segment, and 15% of the upper segment—and that those percentage factors are constant under current law [3] [2]. The Federal Register explicitly lays out the portions of AIME for 2026 and indicates the PIA will be the sum of the percentages applied to those portions for workers first eligible in 2026 [1].
4. Where confusion about “rule changes” commonly arises
Public discussion sometimes conflates annual numeric updates (bend points, COLA, exempt amounts) with structural “rule changes.” The Federal Register shows SSA published the 2026 bend points and the higher monthly exempt amount under the retirement earnings test ($5,430) as part of routine annual determinations [1]. Proposals to alter PIA structure (for example, changing bend‑point factors or adding new brackets) appear in policy option papers such as those from the Congressional Budget Office, but those are not the same as enacted 2026 rules and would affect only scenarios where Congress changes law [6] [7].
5. Policy debate — proposals to alter PIA exist but were not adopted for 2026
CBO and SSA solvency-option materials document proposals to change PIA bend points or factors to reduce benefits for future beneficiaries; these are policy options under debate, not current formula changes for 2026 beneficiaries [6] [7]. For instance, CBO describes alternatives that would lower the percentages applied in higher brackets and notes such options could take effect in 2026 if enacted—highlighting why careful reading matters: a proposal “effective in 2026” differs from the SSA’s routine 2026 bend‑point publication [6].
6. Practical implications for claimants — modest numeric shifts, not a new method
For claimants the practical effect is numeric: updated bend points and any COLA alter dollar outcomes for PIA and monthly benefits in 2026, but the method—index earnings to compute AIME, then apply the three‑part PIA formula—remains intact [1] [2]. Online guides and law‑firm calculators echo this, showing the 90/32/15 structure and updated dollar thresholds used in 2026 calculations [8] [2].
Limitations and next steps
This account relies on published SSA/Federal Register determinations and explanatory analyses in the supplied items; available sources do not mention any other administrative rulemaking in 2026 that changes the basic AIME indexing process or the three‑part PIA formula beyond the annual bend point and related numeric updates [1]. If you want a concrete estimate of your 2026 PIA, provide your indexed‑earnings summary or ask to walk through a numeric example using the 2026 bend points and known percentages [1] [2].