IRMAA life-changing events › Loss of pension income
IRMAA after a pension loss or cut
An employer pension (a traditional defined-benefit plan or a cash-balance plan) stopped, was terminated, or was cut in a reorganization. If that lowered your income, Social Security can set your IRMAA from the newer, lower year instead of your income from two years ago. You ask with Form SSA-44 and tick "Loss of Pension Income".
Does it qualify?
Counts
- Your employer's pension plan ended or was taken over and your payments dropped
- Payments were cut in a reorganization
- A scheduled stop, such as a time-limited payout ending
Doesn't count
- Running down a 401(k) or IRA
- Choosing a smaller payout, or moving money out of a plan
- An annuity you bought yourself
Worked example: Marge, pension cut when the plan was taken over
Marge's former employer ended its pension plan, and the government's pension insurer took it over. From January 2026 her pension dropped from $64,000 to $38,000 a year.
| Income | MAGI | IRMAA a month |
|---|---|---|
| 2024 income (used now) | $128,000 | $95.70 |
| 2026 estimate (asked for) | $103,000 | $0.00 |
Saves $95.70 a month
Watch out: Choosing a smaller payout, or moving money out of a plan, is not this event.
Proof of the event: send one
- A letter or statement from the pension plan administrator. Showing the old and new amounts (or that payments stopped) and the date.
- If the plan type isn't clear: the plan description. A page that states it's a defined-benefit or cash-balance plan.
You also need proof of income for the year in Step 2: a signed copy of your Form 1040 or an IRS transcript. For a year you haven't filed yet, your estimate on the form is enough for now.
Don't have it yet?
Check before you send
- The plan is an employer pension, not a 401(k), IRA or annuity you bought
- If the cut started this year, Step 2 is this year as an estimate
- Your name and Social Security number are on every page
- You kept a full copy of everything you sent
Send it online after signing in to your my Social Security account, or to your local Social Security office. The Form SSA-44 guide walks through every step. If Social Security says no, see how to appeal IRMAA.
Marge would save $1,148.40 a year. The kit costs $49 once, with a filled SSA-44 for your exact event.
Everything you need to fill out Form SSA-44, prove your life-changing event, and stop paying a surcharge based on income you no longer have.
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- What gets rejected, and why
- Income estimate worksheet
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The other life-changing events
- Retirement (work stoppage)
- Cutting back hours (work reduction)
- Divorce or annulment
- Death of a spouse
- Marriage
- Loss of income-producing property
- Employer settlement payment
Questions people ask
Does loss of pension income count as a life-changing event for IRMAA?
Yes. "Loss of Pension Income" is one of the 8 life-changing events on Form SSA-44. An employer pension (a traditional defined-benefit plan or a cash-balance plan) stopped, was terminated, or was cut in a reorganization. It lowers IRMAA only if your income dropped enough to move you to a lower bracket.
What proof do I need?
A letter or statement from the pension plan administrator. If the plan type isn't clear: the plan description. You also need proof of income for the year in Step 2: a signed copy of your tax return or an IRS transcript, or your estimate for a year not filed yet.
What date goes in Step 1?
The month and year the payments dropped or stopped.
Which tax year do I put in Step 2?
The first year with the lower income. It must be more recent than the year Social Security used, and not before the event. If this year (the premium year) will be lower than last year, use this year as an estimate.