The following examples show how suspending benefits for either a short or a long period
after full retirement age (FRA) and before age 70, changes the retirement insurance
benefit (RIB) amount. For benefit amount computations with DRCs, see RS 00615.692.
NOTE: The following examples do not include any possible Cost of Living Adjustments (COLA)
or recomputations based on earnings.
Example 1 – NH earns full amount of DRCs:
A beneficiary’s date of birth (DOB) is July 15, 1945 and he attained his full retirement
age of 66 in July 2011. He is entitled to a benefit of $1000 (full PIA) but elected
to suspend his benefits and earn DRCs beginning with July 2011. He earned DRCs of
2/3 of 1 percent per month, or 8 percent a year. In July 2015, he attained age 70.
If he remained in suspense for the entire period, he earned 48 DRCs for a total increase
of 32 percent. His benefit amount in July 2015 was $1,320.00.
Example 2 – NH earns partial amount of DRCs:
A beneficiary’s DOB is November 05, 1944 and she attained her FRA of 66 in November
2010. Based on a new claim for RIB filed in January 2011, she was entitled to a benefit
of $1,000 (full PIA) as of November 2010, but elected to voluntarily suspend her benefit
and earned DRCs beginning with November 2010. She earned DRCs until age 67 in November
2011, when she asked to have her benefits reinstated as of November 2011. She earned
two DRCs in 2010, which were payable for November 2011 and December 2011 and increased
her benefit of $1,013.30. She earned an additional 10 DRCs in 2011, which were first
payable in January 2012, and increased her benefit to $1,080.80 effective January