Ask Larry

Is This Correct?

I turned 68 in July 2016. If I file for benefits in October 2016, my benefit will only include my DRC through December 2015 (112%), The additional 10 months of DRC (Jan 2016 - October 2016) will be paid, along with my benefit calculated including ALL my DRC (July 2014 - October 2016 (118%).

Is this correct?

thx for your help

Hi,

No, not exactly. The first part is right, in that you would initially be credited with 12% of delayed retirement credits (DRC) for the months July 2014 through December 2015. The additional 9 months of credits, not 10, for the months January 2016 through September 2016 would be credited effective with the check due for January 2017. To be due an additional 10 months of credits effective January 2017, your month of entitlement would need to be November 2016, not October.

When you apply for benefits between full retirement age and age 70, Social Security adds post-entitlement DRCs on an automated basis. At last report, these automated runs were done biennially. As a result, it could take until the latter part of 2018 before you actually receive the increase for your additional 9 months of DRCs from 2016. The increases are fully retroactive, though, so they will pay any back pay you are due at that time.

Best, Jerry

Posted: 
Oct 1 2016 - 11:00am
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