The Washington Report
October 29, 2025
While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.
Other HR/Employment
SSA Releases 2026 Indexed Figures; Announces 2.8% Benefit Increase
The Social Security Administration (SSA) released the Social Security 2026 indexed figures on October 24, 2025. The SSA announced that there will be a 2.8% Cost-of-Living Adjustment (COLA) for 2026. Some other changes that take effect in January of each year are based on the increase in average wages. Relevant figures are shown below.
COLA: Based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, Social Security and Supplemental Security Income beneficiaries will receive a 2.8% COLA for 2026. (The 2025 COLA was 2.5%.)
Wage Base: The 2026 Social Security wage base is $184,500. (The 2025 amount was $176,100.)
FICA/Medicare Tax Rate: The FICA tax rate remains at 7.65%: 6.20% for Social Security and 1.45% for Medicare combined.
Beginning in 2013, the Affordable Care Act increased the Medicare tax rate on wages by 0.9% (from 1.45% to 2.35%) for higher-income individuals. The payroll tax increase applies to wages over $200,000 for single tax filers and $250,000 for couples filing jointly ($125,000 for a married individual filing separately). The tax rates above do not include the 0.9%. The Internal Revenue Service has provided frequently asked questions on the Medicare tax increase, available here.
Maximum Monthly Benefit: For someone retiring at full retirement age in 2026, the maximum monthly benefit is $4,152. (The 2025 amount was $4,018.)
Annual Earnings Test Limit: For individuals under full retirement age, the 2026 annual earnings test limit is $24,480. (The 2025 amount was $23,400.) For individuals attaining full retirement age in 2026, the annual earnings test limit for the months prior to attaining full retirement age is $65,160. (The 2025 amount was $62,160.) There is no annual earnings test for individuals who have attained full retirement age.
A more detailed Aon bulletin, SSA Releases 2026 Indexed Figures; Announces 2.8% Benefit Increase, is available in the Publications section of the newsletter.
More information on the SSA COLA is available here.
A Fact Sheet on the SSA's 2026 Social Security changes is available here.
The October 24, 2025, news release is available here.
Aon Publications
SSA Releases 2026 Indexed Figures; Announces 2.8% Benefit Increase
The Social Security Administration (SSA) released the Social Security 2026 indexed figures on October 24, 2025. The SSA announced that there will be a 2.8% Cost-of-Living Adjustment for 2026. Some other changes that take effect in January of each year are based on the increase in average wages.
The Aon bulletin is available here.
Trump Administration Announces Actions Related to IVF Coverage
President Trump announced a series of actions related to in vitro fertilization (IVF) and fertility coverage, including agreements with a manufacturer of fertility drugs and specialty pharmacies to provide discounts for the costs of certain fertility drugs. The Administration also issued guidance designed to encourage and make it easier for employers to provide access to fertility benefits. The announcement and guidance do not require health plans to provide coverage for fertility benefits and do not provide any subsidies for employers to provide the coverage or for individuals to access coverage.
While these actions may result in lower costs for IVF-related drugs and confirm the ability of employers to offer stand-alone fertility coverage under certain circumstances, the impact of the announcement on group health plan sponsors may be minimal.
The Aon bulletin is available here.
Aon’s Year-End Update: Opportunities for Retirement Plan Sponsors and Fiduciaries
Aon’s Retirement Legal Consulting & Compliance practice is pleased to present its Year-End Update: Opportunities for Retirement Plan Sponsors and Fiduciaries. This Update focuses on many of the plan sponsor and fiduciary issues that may be of concern for the remainder of 2025 while presenting some risk mitigation and planning opportunities to consider for 2026. These areas can include planning ahead for required and discretionary plan amendments, as well as risk mitigation and other “best practice” strategies.
Aon’s Year-End Update: Opportunities for Retirement Plan Sponsors and Fiduciaries is available here.