While these charts show both fractions and decimal equivalents, it is possible, because
of rounding, that the decimal will sometimes result in an answer that is 10 cents
less than the answer resulting from use of the fraction. For that reason, use the
decimal equivalent only for estimates. Always use the fraction to compute benefits. Decimal equivalents are only included to assist in providing estimates.
PIA = $1000.00
Date of birth = 06/15/1940
30 DRCs apply at 7/12 of 1 percent per month
The correct method to use:
$1000.00 times 30 times .01 times 7/12 = $175.00
$1000.00 + $175.00 = $1175.00
Using the decimal equivalent, results in an incorrect amount.
$1000.00 times 30 times .0058333 = $174.999 ($174.90 after rounding down)
NOTE: ICF program #1 will compute delayed retirement credits. Instructions are in MSOM