What the Fairness Act does

The Fairness Act is a proposed federal law that would remove the earnings limit that currently reduces Social Security benefits for people who work before reaching full retirement age. Under current rules, if you claim Social Security early and earn above a certain amount, Social Security deducts $1 from your benefit for every $2 you earn above the threshold. The Fairness Act would eliminate this deduction entirely.

The law has been introduced in Congress multiple times but has not passed. It remains a proposal rather than current law. Understanding what it would change — and what it would not — helps you see how your own situation might differ depending on whether this law ever becomes law.

Key Takeaways

  • The Fairness Act would remove the earnings test that reduces benefits for people under full retirement age who work and claim Social Security early.
  • The earnings limit currently stands at $22,320 per year (2024), but this amount changes annually and varies depending on whether you have reached full retirement age.
  • The law would not change the amount of your monthly benefit itself — it would only stop the reduction that happens when you work.
  • The Fairness Act has been proposed multiple times but is not current law; you should plan based on today's rules unless and until Congress passes it.
  • If you claim Social Security before full retirement age and work, you should report your earnings to Social Security to avoid overpayment and debt.

How the earnings test works today

Right now, if you claim Social Security before you reach full retirement age and you work, Social Security reduces your monthly benefit based on how much you earn. For 2024, the limit is $22,320 per year. If you earn more than that, Social Security withholds $1 in benefits for every $2 you earn above the limit.

The year you reach full retirement age, the rules change. In the months before you turn full retirement age, the limit is higher — $59,520 for 2024 — and the deduction is smaller ($1 withheld for every $3 earned above the limit). Once you reach full retirement age, the earnings test stops entirely, and you can work and earn as much as you want without any reduction to your benefit.

This rule exists because Social Security was designed as a retirement program. The earnings test was meant to ensure that benefits went to people who had actually stopped working, not to supplement the income of people still in the workforce.

What the Fairness Act would change

If the Fairness Act became law, the earnings test would disappear for everyone, regardless of age. You could claim Social Security at 62 and work full-time without any reduction to your benefit. Your monthly payment would be the same whether you earned $0 or $100,000 that year.

The law would not change how your benefit amount is calculated in the first place. Claiming at 62 instead of waiting until 67 or 70 would still result in a permanently lower monthly benefit — that reduction is built into the benefit formula itself. The Fairness Act only removes the additional penalty that happens when you work.

Supporters argue this change would help people who need to work in their early 60s — whether by choice or necessity — without being penalized twice: once by claiming early, and again by having their benefit reduced because they work. Critics worry it would cost Social Security more money and could encourage people to claim earlier than they otherwise would.

The difference between the earnings test and the benefit formula

It is important to understand that the Fairness Act addresses only one part of how Social Security calculates your benefit. There are two separate reductions that can affect you:

The benefit formula reduction is permanent. If you claim at 62 instead of waiting until your full retirement age (66 or 67 depending on your birth year), your monthly benefit is reduced by roughly 30 percent for life. This reduction happens no matter what — it is how Social Security calculates your benefit amount. The Fairness Act does not change this.

The earnings test reduction is temporary. It only applies while you are under full retirement age and working. Once you reach full retirement age, it stops. The Fairness Act would eliminate this temporary reduction.

If the Fairness Act passed, you would still receive a lower monthly benefit if you claimed at 62, but you would not lose any additional money because you worked.

Current status and likelihood of passage

The Fairness Act has been introduced in Congress several times, most recently in 2023. It has not advanced to a vote in either chamber. Social Security policy changes require congressional action, and changes to the earnings test are not currently part of any active legislative effort that has momentum.

You should make decisions about when to claim Social Security based on the rules that exist today, not on proposed changes. If the Fairness Act or any other change does pass in the future, it would apply to your benefits going forward, but you cannot count on it happening.

How to report earnings if you claim early and work

If you have already claimed Social Security before full retirement age and you work, you must report your earnings to Social Security. You can report earnings online through your my Social Security account at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office.

Social Security uses your earnings report to calculate whether your benefit should be reduced that year. If you do not report and Social Security later discovers you earned more than the limit, you will owe back the benefits you were not supposed to receive. This debt can be substantial, and Social Security will deduct it from future benefits or pursue other collection methods.

Report your earnings as soon as you know what they will be for the year — you do not have to wait until the end of the year. Reporting early helps Social Security adjust your payments correctly and prevents overpayment.

Frequently Asked Questions

If the Fairness Act passes, would my past benefits be restored?

No. Any law change would apply going forward only. If you already claimed Social Security and had your benefits reduced due to the earnings test, that money would not be returned to you retroactively. The change would only stop future reductions.

Does the Fairness Act affect Medicare or Supplemental Security Income?

No. The Fairness Act addresses only the Social Security earnings test. It does not change Medicare, Medicaid, SSI, or any other program. Your work earnings could still affect other benefits, so check with those programs separately if you receive them.

What should I do if I am thinking about claiming early and working?

Talk to Social Security before you claim. You can call 1-800-772-1213 or visit ssa.gov to speak with a representative. They can show you how your benefit would be reduced under current rules if you work, and help you understand whether claiming early makes sense for your situation. Do not assume a law change will happen.

If I am already at full retirement age, does the Fairness Act matter to me?

No. The earnings test already does not apply to you. You can work and earn as much as you want without any reduction to your Social Security benefit. The Fairness Act would only affect people who claim before reaching full retirement age.