Ask Larry

Am I Correct That My Benefits Should Be Recalculated?

I drew my benefits early at 62 and continued to work. I exceeded the earnings limit in 3 different years and lost my benefits. I reached FRA May of 2021 and my understanding was that at that time my benefits would be recalculated and given back to me in my monthly benefits. When I call the Social Security office about it they claim they do not know what I am talking about but it is on their website. Am I correct and if so how do I get my money back?

Hi. Yes, it sounds like you're due a benefit rate adjustment, but Social Security doesn't refund any of the benefits withheld due to the earnings test. The type of adjustment you're referring to is called an Adjustment of Reduction Factor (ARF) ( Such rate adjustments are performed by Social Security using an automated process, and the adjustments generally don't occur until a year or two after the person reaches full retirement age (FRA). However, the rate adjustments are retroactive to the month that the person turned FRA, so when your rate adjustment gets processed you should be paid any back pay that you have coming.

Best, Jerry

May 6 2022 - 12:24pm
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