Larry: I am 68 as of Aug. 2016 I waited the extra year to increase my benefit by the 8%. My benefit was $2521 at age 66 so I figured I would get the 8% increase when I applied at 67 a year later but from what I can tell that was not the case. My benefit came back $2521. They said my monthly benefit was raised starting Oct. 2016 with credit for being at least full retirement age and did not receive a retirement benefit because of my work and earnings. I told them on the online form to hold off any payments until Jan 2017 to make sure I got the 8% but they started the payments for Oct. 2016. Is there anything I can do to get the 8%

Hi,

I'm a bit puzzled by the facts of your case as described, but let me explain how delayed retirement credits (DRC) are credited when you apply between full retirement age and age 70. DRCs are initially credited only through December of the calendar year prior to your month of entitlement. For example, if you reach age 67 in August 2015 and file effective with that month, you initially only receive DRCs for the months August through December of 2014. Then, effective with your check for January 2016, you are due the additional DRCs for the months January through July of 2015. So, January 2016 would be the first month that you would be due the full 8% of DRCs.

Post-entitlement DRCs are added through an automated process. 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. The increases due are fully retroactive, but this results in a substantial delay in receiving the proper amount of DRCs.

My assumption from your description of events is that your initial $2521 benefit already includes 5 months of DRCs (i.e. August 2014-December 2014). My guess is that the additional 7 months of DRCs that you are due should bump your benefit amount up to around $2634 whenever SSA runs their DRC update, and they should pay you any back pay due retroactive to January 2016.

Best, Jerry