Filing and suspending benefits to accrue delayed retirement credits (DRC) no longer applies after April 30, 2016 due to the Bipartisan Budget Act (BBA) of 2015. You may still suspend your own retirement entitlement for the DRC’s, you just can no longer receive any other benefits while yours is in suspense.
The new rules are:
* an individual may not receive benefits for the period of voluntary suspension;
* no auxiliary benefits (except divorced spouse’s benefits) may be paid on the record of a person who requests voluntary suspension for the period of voluntary suspension;
* an individual who requests voluntary suspension cannot receive benefits on another record for the period of voluntary suspension; and
* voluntary suspension will end with the earlier of (1) the month following the month in which an individual requests reinstatement of benefits or (2) the month in which the individual attains the age of 70
What does this mean for you? Well it affords you a bit of flexibility with your filing options. If you lose your job unexpectedly and need the income, you can file and receive your reduced retirement as early as age 62. If your employment situation changes, or income needs change, you still have the option of suspending your benefits to increase your benefit by accruing DRC’s. The end result would increase your ongoing benefits from attainment of age 70 onward.
You can also file for retirement, receive benefits temporarily, then file a request to withdraw the application. This option is only available within the first 12 months of entitlement and all benefits received must be repaid. If you need the funds immediately for any reason and have the ability to repay timely this gives you the option to access your retirement funds temporarily with no impact on future entitlement options. Be mindful, this does affect any other entitled person on your earnings record.
Maryellen Eckert
SSA Specialist
