SS benefit increase from one additional year past FRA delayed until 2019 -- Why?

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Bammerman
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SS benefit increase from one additional year past FRA delayed until 2019 -- Why?

Post by Bammerman » Thu Aug 09, 2018 4:58 pm

I delayed filing for my social security benefits until age 67, one year past my full retirement age (FRA). When the SS agent took my application over the phone she told me what my benefits would be, based on my FRA, and said that they would start in September (one month after I turn 67). She then said that the benefit increase of 8%, due to the one additional year past my FRA, would not show up until January 2019.

I just saw my benefit verification letter online and it matches the amount the agent said it would be. However, no mention is made of any other (higher) amount coming in January.

Does this make sense? Is it "normal"? Anyone know why the additional 8% has to wait until January? Yes, I can call and ask, but I thought I would ask here first.

Thanks.

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Bammerman
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Re: SS benefit increase from one additional year past FRA delayed until 2019 -- Why?

Post by Bammerman » Thu Aug 09, 2018 5:09 pm

Actually, I think the agent misspoke, or I misunderstood, because the amount I'm to receive matches what I had calculated that I would receive plus almost exactly 8%. It's a little complicated because I am subject to WEP. But I still have no idea what the agent was referring to when she talked about an increase coming not until January. Maybe some kind of COLA? Although she did not use that phrase. Oh, well.

Ron
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Re: SS benefit increase from one additional year past FRA delayed until 2019 -- Why?

Post by Ron » Thu Aug 09, 2018 5:50 pm

Delayed Retirement Credit increases are effective:

in January of the year following the year the increment months were earned...

Ref: https://secure.ssa.gov/apps10/poms.nsf/lnx/0300615690

The exception being that if you delay SS until age 70, the previous months credits (from your FRA on) you will get your full credit in your first check after you turn 70 regardless of month of the year; you don't have to wait until the following January.

- Ron

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Nestegg_User
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Re: SS benefit increase from one additional year past FRA delayed until 2019 -- Why?

Post by Nestegg_User » Thu Aug 09, 2018 7:35 pm

That’s why I’ve got, in my IPS, that I may start SS in January of the year AFTER I reach FRA, as that maximizes delayed credits while still getting the max for the period reached
(I had paid attention to older threads by our old friend “SSCritic” when he was mentioning those types of issues... do miss his insights)

vested1
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Re: SS benefit increase from one additional year past FRA delayed until 2019 -- Why?

Post by vested1 » Fri Aug 10, 2018 10:10 am

Ron wrote:
Thu Aug 09, 2018 5:50 pm
Delayed Retirement Credit increases are effective:

in January of the year following the year the increment months were earned...

Ref: https://secure.ssa.gov/apps10/poms.nsf/lnx/0300615690

The exception being that if you delay SS until age 70, the previous months credits (from your FRA on) you will get your full credit in your first check after you turn 70 regardless of month of the year; you don't have to wait until the following January.

- Ron
I've never really understood this, so perhaps you or someone else can provide an answer using my example. It wasn't clear to me in the linked reference. The months listed are actual in my scenario, but the benefit amount is a bit higher.

I am currently receiving a restricted benefit on my wife's benefit at my age 66 and 1 month. I will either wait until age 69.5 in January of 2022, or until age 70 in July of 2022. The difference is currently about $100.

For argument's sake let's say my age 69.5 benefit would be $3,200, and my age 70 benefit would be $3,300.

If I file in January at age 69.5 (128% of PIA) do I not receive credit for DRC's previous earned until July, meaning I would only be receiving my PIA for 6 months until they kicked in at age 70 in July (132% of PIA)? I can't imagine that this is the case. If it is the case, do you get paid back eventually for those months of PIA only? Or is the fact that due to filing in January at age 69.5, I would receive all accrued DRC's through December of the previous year?

What if I was born in November instead of July? Would filing in April of the year I turned 70 make it so that I wouldn't be paid for DRC's earned between January and April, until January of the following year?

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