SS: where are my delay credits? UPDATE

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montanagirl
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SS: where are my delay credits? UPDATE

Post by montanagirl » Wed Mar 13, 2019 8:43 am

UPDATE: I sent a letter to SSA March 14 and also called someone who "got it" and said he'd send a note to some other department.

Yesterday Apr 29 I got what looks like a regular form letter saying that they raised the payment to give me credit "for benefits which we did not pay at the full rate before you reached full retirement at age 66." LOL what? :confused But maybe they don't have a form letter for this situation.

Anyway they increased the check by 68/mo which is about what I was expecting for the 6 months delay credit, and will be sending an extra payment to make up the difference in earlier payments this year.

I suspect this letter was in the works anyway and my March 14 letter had nothing to do with it, because it hasn't been long enough for government.

....

I waited until 69 1/2 to file for my old age benefit. When it started in September I got the three extra years delay credits and figured I'd see the six months' delay credits the month after my birthday month.

Well it's a month after my birthday but the payment is the same. I did get the 2.8% raise in January but that's something different, right?

Am I not understanding something or do I need to call the SS admin?
Last edited by montanagirl on Tue Apr 30, 2019 8:15 pm, edited 4 times in total.

goblue100
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Re: SS: where are my delay credits?

Post by goblue100 » Wed Mar 13, 2019 12:02 pm

I'm not an expert, but if nothing else my post can serve as a bump. I don't really understand what you are saying in the OP. I believe if you filed at 69 1/2 and checks started before your 70th birthday, the first check had all the money you were due for waiting as long as you did.
Edit: I read a SS Q/A column, and I believe it is common for the SS person that takes an application to offer a 6 month lump sum payment, but if you take that payment you are basically filing 6 months early. Did anything like that happen?
This article describes the retroactive payment:
https://www.forbes.com/sites/tomhager/2 ... 521e020fce
Last edited by goblue100 on Wed Mar 13, 2019 12:08 pm, edited 1 time in total.
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JoeRetire
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Re: SS: where are my delay credits?

Post by JoeRetire » Wed Mar 13, 2019 12:07 pm

montanagirl wrote:
Wed Mar 13, 2019 8:43 am
I waited until 69 1/2 to file for my old age benefit. When it started in September I got the three extra years delay credits and figured I'd see the six months' delay credits the month after my birthday month.
Not sure why you thought that. You probably should have seen 3.5 years worth of delayed retirement credits in your first check.
I did get the 2.8% raise in January but that's something different, right?
Yup, that's COLA.
Am I not understanding something or do I need to call the SS admin?
Call SS. Perhaps you got a 6 month retroactive check initially?
Don't be a lemming.

Ron
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Re: SS: where are my delay credits?

Post by Ron » Wed Mar 13, 2019 12:10 pm

You will see them in your January 2020 check, since they are only applied yearly for those who claim after FRA but before the maximum of age 70.

If you would have waited until age 70, your first check would have all DRC's applied, regardless of month claimed.

See: http://figuide.com/delayed-retirement-c ... plied.html

- Ron

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Mlm
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Re: SS: where are my delay credits?

Post by Mlm » Wed Mar 13, 2019 12:57 pm

see: https://www.forbes.com/sites/kotlikoff/ ... 9e1ce714ce

According to Larry Kotlikoff: Due to budget limits, the Social Security Administration (SSA) has given this process a relatively low priority, and only runs the updates every other year.

pshonore
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Re: SS: where are my delay credits?

Post by pshonore » Wed Mar 13, 2019 1:27 pm

Here's what Kiplinger says: https://www.kiplinger.com/article/retir ... layed.html

"When you take your boosted benefit in your late sixties, all credits earned in previous calendar years will be included in your first check, but credits earned in the current year won’t count until the next January. Say your birthday is February 14, 1948, and you decide to take your benefit in June 2017, when you are well into your 69th year. You will have earned delayed credits from February 2014 through May 2017. But that first check (and the remainder of your checks in 2017) will only include delayed credits from February 2014 through December 2016. The remaining credits you earn from January 2017 through May 2017 will be added to your benefit paid in January 2018—a delay of about half a year."

I'd call SS.

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montanagirl
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Re: SS: where are my delay credits?

Post by montanagirl » Wed Mar 13, 2019 1:35 pm

pshonore wrote:
Wed Mar 13, 2019 1:27 pm
Here's what Kiplinger says: https://www.kiplinger.com/article/retir ... layed.html

"When you take your boosted benefit in your late sixties, all credits earned in previous calendar years will be included in your first check, but credits earned in the current year won’t count until the next January. Say your birthday is February 14, 1948, and you decide to take your benefit in June 2017, when you are well into your 69th year. You will have earned delayed credits from February 2014 through May 2017. But that first check (and the remainder of your checks in 2017) will only include delayed credits from February 2014 through December 2016. The remaining credits you earn from January 2017 through May 2017 will be added to your benefit paid in January 2018—a delay of about half a year."

I'd call SS.
Yes this is what I thought, and I called a couple years ago and it was confirmed. I just forgot that it was supposed to kick in January, not the month after my birthday.

I've called twice today and the wait times went from 40 min to 55. Maybe that's because today is a payday? They didn't offer to do a callback either. :x

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Nestegg_User
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Re: SS: where are my delay credits?

Post by Nestegg_User » Wed Mar 13, 2019 2:19 pm

I think that's why I had my IPS have me start SS in either November or December.... so that the delay credits will hit relatively immediately (for me, FRA + n months, depending) ... it will probably depend on relative taxation, depending upon level of interest, cap gains and how much more Roth conversions are needed. (while I'm SS eligible now, I'm still delaying...will see at FRA (especially looking at numbers since potential (currently slated) " haircut" could affect FRA vs 70 decision))

drawpoker
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Re: SS: where are my delay credits?

Post by drawpoker » Wed Mar 13, 2019 10:08 pm

This is exactly why - altho tempted to file at age 69& 1/2 like OP - I didn't pull the trigger. Waited it out mainly because of just all this convoluted method of applying those DRC's. All too damn confusing. And just rife with potential for error, miscommunications, etc :twisted:

Just submitted my application online March 1st, exactly on their proscribed schedule for attaining age 70 -for SSA purposes anyway - as of the month of June this year (Actual birthday July 1, but that's another whole oddity/weird wrinkle of Social Security, no need to confuse it more here.)

Wishing & Hoping now, just like Dusty Springfield in the song :P , to get my first check sometime in July 2019. Since, unlike Medicare, they operate on an accounting system a month behind, not ahead. :(

Did faithfully follow the advice of our resident expert here, Mike, or maybe it was another poster. :? In the 1st "remarks" section (where they asked why are you requesting an effec. start date different than March ?) I explicitly parroted out " To max out DRC's"

Then, in the final section (much larger field is afforded with more characters allowed) I typed "Please note, this is a restricted application for my retirement benefit only, nothing spousal. I am requesting my retirement benefit based on an age no earlier than 70"

Since then - received an email message telling me that my application was being processed by the Denver Co SSA office. The message was bending over backwards to sound so friendly, so helpful, so thoroughly professional. To inspire a soaring sense of confidence in the recipient, for sure!

Except - Odd thing - Message was very specific that if I should have any questions concerning my application for benefits don't hesitate to call, we're here to help! Er, phone # given to call was - Um, for the Baltimore SSA office.

Duh

Topic Author
montanagirl
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Re: SS: where are my delay credits?

Post by montanagirl » Thu Mar 14, 2019 12:03 pm

Arggghh...I just got off the phone with SSA after a 40 minute wait, switching phones before the battery went dead.

The gal was useless, I could hardly understand her, she didn't get what I was saying though I had it all laid out using my ANYPIA numbers. Finally she started to tell me to send a letter to the local office asking for a recomputation, then the line went all to hell I couldn't make out anything else. Really hit the jackpot with that one! :x

So I wrote a short letter with the numbers but I admit I was so upset I had trouble with the math. But what I was expecting was 1.28 x PIA and instead am getting 1.24 x PIA.

I wonder if Local Office will have a clue either?

drawpoker
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Re: SS: where are my delay credits?

Post by drawpoker » Thu Mar 14, 2019 12:44 pm

Good luck on that! The "local office" that is designated for our town doesn't publish their phone # anymore. Of course, this may have something to do with the fact they have cut back hours to the extent they are only open now like 20 or 22 hours a week.

They are helpful to state that they do not take "walk-in's", only visits by appointment. Q: Just how would one accomplish making an appointment? With no phone # to call? Do they expect people to call the 800 #, wait 45 min. to an hour, then be told "call your local office".

Actually, in terms of distance, the Dover DE office is closer to me, and I am told by reliable sources they do take walk-ins.
I plan, if SSA screws up my application, to go to Dover.

But will they throw me out, tell me I have to utilize my "designated" local office (Elkton MD) ?

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montanagirl
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Re: SS: where are my delay credits? UPDATED

Post by montanagirl » Tue Apr 30, 2019 8:14 pm

UPDATE: this seems to be resolved. See first post.
.

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