I started receiving benefits at FRA, but am continuing to work. In theory, every year I work, one of my lower earning years should fall off. I understand that benefits get recalculated automatically every year. If I am eligible for an increase when does that go into effect; is it on my birthday, or on the anniversary of my initial employment, or the beginning of the fiscal year, etc.?
Any clarification you could provide would be greatly appreciated.

Hi,

Social Security retirement benefits are based on an average of a person's highest 35 years of wage-indexed earnings. Increases resulting from a year of higher earnings earned after a person initially starts drawing benefits take effect with their payment for January of the year following the year of the higher earnings. So, for example, if your earnings in 2019 were high enough to increase your benefit rate, the increase would be due effective with your payment for January 2020 that's due in February 2020.

However, due to delays in the reporting of annual earnings amounts, the automatic recomputation of benefit rates aren't processed until around September of the year following the year of the higher earnings. Therefore, any increase due for 2019 earnings would show up in a person's benefit amount around September 2020. But, Social Security would pay any back pay due retroactive to the person's benefit payment for January 2020.

Best, Jerry