SS DRC question

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Topic Author
FrankinFl
Posts: 45
Joined: Fri May 27, 2022 2:44 pm

SS DRC question

Post by FrankinFl »

My birthday is November 11th 1954 and I started taking social security in June of 2023 (with the first payment in July.)

My understanding is I should have 6 months delayed retirement credits from December of 2022 through May of 23 that should have started in January of this year. So far I haven't received anything. I was told it could take some time but should it take this long or is my understanding about receiving delayed retirement credits incorrect?

I received conflicting information from the Social security office. One person said I'm not entitled to delayed retirement credits the other person said I should receive them but it would take time.

Thanks
123
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Joined: Fri Oct 12, 2012 3:55 pm

Re: SS DRC question

Post by 123 »

DRC's that are earned in one year increase the monthly benefit effective January of the following year. The actual increase in the monthly benefit may not be paid till much later in the year but a retroactive adjustment back to January will be part of the process as monthly benefits are adjusted. Potentially the adjustment may not be paid till the summer or fall.

Answers to Social Security questions can be very precise with respect to an individual's personal situation and the moment the answer is given. For example a person may not be entitled to all the DRC's they are eligible for until January of the following year. Entitled does not necessarily imply immediate payment, they will get their money eventually.
The closest helping hand is at the end of your own arm.
jebmke
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Location: Delmarva Peninsula

Re: SS DRC question

Post by jebmke »

^ that said, it is worth checking the SSA calculations. The do make mistakes. When I started my benefit they made an error which I found using one of their benefit calculators to verify their numbers. I filed an appeal and it was corrected very quickly with no fuss.
When you discover that you are riding a dead horse, the best strategy is to dismount.
Topic Author
FrankinFl
Posts: 45
Joined: Fri May 27, 2022 2:44 pm

Re: SS DRC question

Post by FrankinFl »

Thanks for the helpful information.

Is anyone else waiting on DRCs from last year?
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Chip Munk
Posts: 900
Joined: Fri Feb 22, 2019 3:01 pm

Re: SS DRC question

Post by Chip Munk »

I have seen other threads where people reported not getting credit for the final DRCs for several months into the new year. I don't recall if it took this long however. I would keep calling your local SSA office every month based on my own experience with the SSA failing to follow through on issues I've had with them.

I think you are due only five more DRCs, not six. When you started your benefit in June 2023, you had earned 31 DRCs but would have been credited with only 26 DRCs by that time (as of Jan 2023). Your initial benefit should have been:

(1 + (26*.02) / 3) * (Your 2023 PIA) or approximately 1.17333 * Your 2023 PIA before rounding down to the nearest $0.10.

You are due another five DRCs for Jan, Feb, Mar, Apr and May 2023. Your new benefit amount should be:

(1 + (31*.02) / 3) * (Your 2024 PIA) or approximately 1.20667 * Your 2024 PIA (before rounding) where your 2024 PIA = your 2023 PIA increased by the 2024 COLA.

The COLA increase and the increase due to the final five DRCs occur in successive months. You should have seen the increase due to the 2024 COLA starting with your Dec 2023 benefit (paid in Jan 2024), but still with credit for only 26 DRCs. Starting with your Jan 2024 benefit (paid in Feb 2024), you should have received a second benefit increase due to the remaining 5 DRCs.
Topic Author
FrankinFl
Posts: 45
Joined: Fri May 27, 2022 2:44 pm

Re: SS DRC question

Post by FrankinFl »

Chip Munk wrote: Tue May 14, 2024 2:29 pm I have seen other threads where people reported not getting credit for the final DRCs for several months into the new year. I don't recall if it took this long however. I would keep calling your local SSA office every month based on my own experience with the SSA failing to follow through on issues I've had with them.

I think you are due only five more DRCs, not six. When you started your benefit in June 2023, you had earned 31 DRCs but would have been credited with only 26 DRCs by that time (as of Jan 2023). Your initial benefit should have been:

(1 + (26*.02) / 3) * (Your 2023 PIA) or approximately 1.17333 * Your 2023 PIA before rounding down to the nearest $0.10.

You are due another five DRCs for Jan, Feb, Mar, Apr and May 2023. Your new benefit amount should be:

(1 + (31*.02) / 3) * (Your 2024 PIA) or approximately 1.20667 * Your 2024 PIA (before rounding) where your 2024 PIA = your 2023 PIA increased by the 2024 COLA.

The COLA increase and the increase due to the final five DRCs occur in successive months. You should have seen the increase due to the 2024 COLA starting with your Dec 2023 benefit (paid in Jan 2024), but still with credit for only 26 DRCs. Starting with your Jan 2024 benefit (paid in Feb 2024), you should have received a second benefit increase due to the remaining 5 DRCs.
Great information. Much appreciated.
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