When do SS payments adjust for 2020 earnings?

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munemaker
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When do SS payments adjust for 2020 earnings?

Post by munemaker »

Wife drew SS early, starting at 62. She is 65 now and continues to work part time. She has not worked 35 years, so there are zeros in her record. Last year, she earned about $4,500. Her online SS account shows these earnings. However, her current benefits have not increased due to 2020 earnings, as they have in previous years. When I say "current benefits have not increased," I mean the gross number before Medicare.

Is the SS just behind, or is there some reason I could be overlooking?

Thanks
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RickBoglehead
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Re: When do SS payments adjust for 2020 earnings?

Post by RickBoglehead »

December 2021.

From the brochure entitled "How Work Affects Your Benefits". https://www.ssa.gov/pubs/EN-05-10069.pdf

Each year we review the records for all Social Security recipients who work. If your latest year of earnings turns out to be one of your highest years, we refigure your benefit and pay you any increase due. This is an automatic process, and benefits are paid in December of the following year. For example, in December 2021, you should get an increase for your 2020 earnings if those earnings raised your benefit. The increase would be retroactive to January 2021.
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munemaker
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Re: When do SS payments adjust for 2020 earnings?

Post by munemaker »

Rick,

This seems to be a change from last year. In April, 2020, SS sent her an extra payment to cover the revised amount for February and March of 2020. She was expecting a similar payment in April 2021. From your post, they now apparently do this in December.

Thanks

Mun
Cruise
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Re: When do SS payments adjust for 2020 earnings?

Post by Cruise »

For anyone that knows, how is one notified that their payments are being adjusted due to the increased years of relevant contributions?
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HueyLD
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Re: When do SS payments adjust for 2020 earnings?

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Cruise wrote: Sun May 09, 2021 7:30 pm For anyone that knows, how is one notified that their payments are being adjusted due to the increased years of relevant contributions?
AERO adustments used to be made in October after the 1040 extension due date. The letter would come in late October or early November.

I guess the backlog has them waiting until December.

Note: AERO stands for “ Automatic Earnings Reappraisal Operation.”
Cruise
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Re: When do SS payments adjust for 2020 earnings?

Post by Cruise »

HueyLD wrote: Sun May 09, 2021 8:38 pm
Cruise wrote: Sun May 09, 2021 7:30 pm For anyone that knows, how is one notified that their payments are being adjusted due to the increased years of relevant contributions?
AERO adustments used to be made in October after the 1040 extension due date. The letter would come in late October or early November.

I guess the backlog has them waiting until December.

Note: AERO stands for “ Automatic Earnings Reappraisal Operation.”
Thank you.
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munemaker
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Re: When do SS payments adjust for 2020 earnings?

Post by munemaker »

HueyLD wrote: Sun May 09, 2021 8:38 pm
Cruise wrote: Sun May 09, 2021 7:30 pm For anyone that knows, how is one notified that their payments are being adjusted due to the increased years of relevant contributions?
AERO adustments used to be made in October after the 1040 extension due date. The letter would come in late October or early November.

I guess the backlog has them waiting until December.

Note: AERO stands for “ Automatic Earnings Reappraisal Operation.”
I looked back through our records. Last year, my wife received a snail mail from SS that was dated March 18, stating that, due to 2019 earnings, her SS payments were being adjusted starting in March, and that a separate back payment was being made through February.

She was expecting the same thing to occur this March, but it appears SS is now making these adjustments at year end.

Mun
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