Social Security announced in 2023 it would overhaul how it calculates SSDI payments, then shelved the plan in 2024

In March 2023, Social Security released a proposal to change the formula used to calculate Supplemental Security Income (SSI) and SSDI payments. The agency said the new method would better reflect the actual cost of living for people with disabilities. In September 2024, Social Security withdrew the proposal without implementing it. The current payment calculation method remains in place.

This matters because many people with disabilities were watching to see whether their monthly payments would increase. The proposal would have affected how Social Security counted income and resources when determining payment amounts. Since the plan was dropped, those changes will not happen, and the rules that determine your payment today are the same rules that will determine it tomorrow.

Key Takeaways

  • Social Security proposed a new payment calculation method in 2023 but withdrew it in 2024, so the current formula for determining SSDI and SSI payments remains unchanged.
  • The original proposal would have altered how the agency counts income and resources, which directly affects the monthly amount you receive.
  • No retroactive payments or adjustments were issued because the plan never took effect.
  • If you are already receiving SSDI or SSI, your payment amount will continue to be calculated using the existing rules.

What the original proposal would have changed

The 2023 proposal focused on how Social Security counts money and possessions when it calculates your SSI payment. Under SSI rules, the agency looks at your income and resources (things you own) to decide how much to pay you each month. The proposal would have modified which types of income count toward your limit and how the agency values certain resources.

Specifically, Social Security suggested changes to the resource limit—the total amount of money and property you can own and still receive SSI. It also proposed adjusting how the agency treats certain types of income, such as gifts or money from family members. The agency framed these changes as a way to make the calculation more accurate for people living with disabilities today.

SSDI payments, by contrast, are based on your work history and the taxes you paid into Social Security, not on how much money you have. The proposal would not have directly changed SSDI payment amounts the way it might have affected SSI. However, Social Security was still reviewing how the two programs interact, which could have had indirect effects for people receiving both.

Why Social Security dropped the plan

Social Security did not publicly release a detailed explanation for withdrawing the proposal. The agency typically shelves policy changes when they face significant opposition from Congress, disability advocacy groups, or the public, or when internal analysis suggests the change would create more problems than it solves.

Disability advocates had raised concerns about the proposal during the public comment period. Some worried that changes to resource limits could harm people who were saving for emergencies or major expenses. Others questioned whether the new calculation method would actually result in higher payments for most recipients, or whether it would straightforward shift money between different groups of beneficiaries.

The withdrawal means Social Security decided not to move forward, at least for now. The agency could propose similar changes in the future, but there is no current plan to do so.

How your SSDI or SSI payment is calculated right now

Your SSDI payment is based on your Primary Insurance Amount (PIA), which Social Security calculates from your lifetime earnings record. The agency looks at your 35 highest-earning years, adjusts them for inflation, and applies a formula that weights earlier earnings more heavily. Your monthly payment is a percentage of this amount.

SSI payments work differently. Social Security starts with a federal base amount (which changes each year) and subtracts any income you have. The 2024 federal SSI payment is $943 per month for an individual, though this amount increases annually. The agency counts most income dollar-for-dollar against your payment, though some types of income are excluded or only partially counted.

Both programs have resource limits. For SSDI, there is no resource limit—you can own as much as you want. For SSI, the resource limit is $2,000 for an individual and $3,000 for a couple (as of 2024). If you own more than these amounts, you lose SSI payments.

What has changed since the proposal was dropped

The only change to SSDI and SSI payments since the proposal was withdrawn has been the annual cost-of-living adjustment (COLA). Each January, Social Security increases all SSDI and SSI payments by a percentage set by federal law. This adjustment is automatic and happens every year, regardless of whether policy proposals move forward or are shelved.

In January 2024, SSDI and SSI payments increased by 3.2 percent. In January 2025, they increased by 2.5 percent. These adjustments are separate from any changes to how the payment is calculated—they straightforward make the existing payment larger to account for inflation.

If you were receiving benefits when the proposal was announced and you are still receiving them now, your payment has only changed due to the annual COLA. No other modifications to your payment method have occurred.

Whether this proposal might return in the future

Social Security does not typically announce whether it plans to revisit a withdrawn proposal. The agency's policy priorities change with new leadership, budget pressures, and shifts in Congress. A future administration might decide to pursue similar changes, or it might focus on different reforms entirely.

If you want to stay informed about potential changes to how SSDI or SSI payments are calculated, you can check the Social Security website or contact your local Social Security office. The agency publishes proposed rule changes in the Federal Register before they take effect, which gives the public a chance to comment.

Frequently Asked Questions

Will I get a retroactive payment now that the proposal is dropped?

No. The proposal never took effect, so there is nothing to reverse or adjust. Your payments have been calculated under the current rules the entire time, and no retroactive changes are owed.

Does this mean my SSDI or SSI payment will never change?

Your payment changes once a year in January due to the cost-of-living adjustment. It can also change if your circumstances change—for example, if you earn more income, if your living situation changes, or if you become ineligible for some reason. The withdrawal of this proposal does not affect those kinds of changes.

Could Social Security propose a similar change to how payments are calculated again?

Yes, it is possible. Social Security could propose changes to payment calculations in the future. If it does, there will be a public comment period where you can share your views. You would be notified through official Social Security channels if a new proposal is announced.

How do I know if a change to SSDI or SSI rules is coming?

Social Security publishes proposed changes in the Federal Register and on its official website. You can also contact your local Social Security office or call 1-800-772-1213 to ask about any upcoming changes to the programs.