TN 28 (11-14)

# RS 00615.692 Computing the Amount of the Delayed Retirement Credits (DRC)

To view the monthly credit for each possible DRC as both a fraction and as a decimal equivalent, see the chart in RS 00615.692D in this section. Only use the decimal equivalent for estimates. The fractions shown represent the part of one percent each credit is worth. For example, 2/3 percent means 2/3 of one percent. The chart also shows the total credit possible per year.

To view how the change in full retirement age (FRA) affects the total possible increase that may apply for any date of birth (DOB) see the chart in RS 00615.692E in this section.

## A. Basis for computing DRCs

Add DRCs to the primary insurance amount (PIA) if the number holder (NH) did not receive a reduced benefit prior to FRA. If the NH received a reduced retirement insurance benefit (RIB) for any month before FRA, add the DRCs to the monthly benefit amount (MBA).

## B. Interactive Computation Facility (ICF) for DRCs

Use the ICF to process benefit payment computations with DRCs. For additional instructions on computing DRCs, refer to MSOM ICFT2 002.005.

## C. Formula for computing DRCs

### 1. To add DRCs use the following formula:

• MBA times the number of DRCs times .01 times the fraction equals the credit

• Round this amount down to the nearest ten cents and add it to the MBA to determine the new benefit amount. (Prior to 06/82 round up.)

### 2. Computation errors with the decimal equivalent or multiplication sequence

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.

For example:

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 ICFT2 002.001.

## D. Chart for Delayed Retirement Credits

This chart shows the amount of each DRC based on the claimant's date of birth. Use the decimal equivalent only to provide estimates.

Date of Birth

Monthly Credit

Decimal Equivalent

Yearly Credit

After 01/01/43

2/3%

.0066667

8%

01/02/41 thru 01/01/43

5/8%

.0062500

7.5%

01/02/39 thru 01/01/41

7/12%

.0058333

7%

01/02/37 thru 01/01/39

13/24%

.0054167

6.5%

01/02/35 thru 01/01/37

1/2%

.0050000

6%

01/02/33 thru 01/01/35

11/24%

.0045833

5.5%

01/02/31 thru 01/01/33

5/12%

.0041667

5%

01/02/29 thru 01/01/31

3/8%

.0037500

4.5%

01/02/27 thru 01/01/29

1/3%

.0033333

4%

01/02/25 thru 01/01/27

7/24%

.0029167

3.5%

01/02/17 thru 01/01/25

1/4%

.0025000

3%

Before 01/02/17

1/12%

.0008333

1%

## E. Chart for Maximum Delayed Retirement Credits for Difference DOBs

This chart shows the relationship between the changes in FRA and DRCs:

Date of Birth

RIB
FRA

Monthly
Credit

Yearly
Credit

Max
Months

Max
Credit

After 01/01/60

67

2/3%

8%

36

24.00%

01/02/59 thru 01/01/60

66&10

2/3%

8%

38

25.33%

01/02/58 thru 01/01/59

66&8

2/3%

8%

40

26.67%

01/02/57 thru 01/01/58

66&6

2/3%

8%

42

28.00%

01/02/56 thru 01/01/57

66&4

2/3%

8%

44

29.33%

01/02/55 thru 01/01/56

66&2

2/3%

8%

46

30.67%

01/02/43 thru 01/01/55

66

2/3%

8%

48

32.00%

01/02/42 thru 01/01/43

65&10

5/8%

7.5%

50

31.25%

01/02/41 thru 01/01/42

65&8

5/8%

7.5%

52

32.50%

01/02/40 thru 01/01/41

65&6

7/12%

7.0%

54

31.50%

01/02/39 thru 01/01/40

65&4

7/12%

7.0%

56

32.67%

01/02/38 thru 01/01/39

65&2

13/24%

6.5%

58

31.42%

01/02/37 thru 01/01/38

65

13/24%

6.5%

60

32.50%

01/02/35 thru 01/01/37

65

1/2%

6%

60

30.00%

01/02/33 thru 01/01/35

65

11/24%

5.5%

60

27.50%

01/02/31 thru 01/01/33

65

5/12%

5%

60

25.00%

01/02/29 thru 01/01/31

65

3/8%

4.5%

60

22.50%

01/02/27 thru 01/01/29

65

1/3%

4%

60

20.00%

01/02/25 thru 01/01/27

65

7/24%

3.5%

60

17.50%

01/02/17 thru 01/01/25

65

1/4%

3%

60

15.00%

01/02/14 thru 01/01/17

65

1/12%

1%

60

5.00%

12/02/13 thru 01/01/14

65

1/12%

1%

61

5.08%

11/02/13 thru 12/01/13

65

1/12%

1%

62

5.17%

10/02/13 thru 11/01/13

65

1/12%

1%

63

5.25%

09/02/13 thru 10/01/13

65

1/12%

1%

64

5.33%

08/02/13 thru 09/01/13

65

1/12%

1%

65

5.42%

07/02/13 thru 08/01/13

65

1/12%

1%

66

5.50%

06/02/13 thru 07/01/13

65

1/12%

1%

67

5.58%

05/02/13 thru 06/01/13

65

1/12%

1%

68

5.67%

04/02/13 thru 05/01/13

65

1/12%

1%

69

5.75%

03/02/13 thru 04/01/13

65

1/12%

1%

70

5.83%

02/02/13 thru 03/01/13

65

1/12%

1%

71

5.92%

01/02/13 thru 02/01/13

65

1/12%

1%

72

6.00%

12/02/12 thru 01/01/13

65

1/12%

1%

73

6.08%

11/02/12 thru 12/01/12

65

1/12%

1%

74

6.17%

10/02/12 thru 11/01/12

65

1/12%

1%

75

6.25%

09/02/12 thru 10/01/12

65

1/12%

1%

76

6.33%

08/02/12 thru 09/01/12

65

1/12%

1%

77

6.42%

07/02/12 thru 08/01/12

65

1/12%

1%

78

6.50%

06/02/12 thru 07/01/12

65

1/12%

1%

79

6.58%

05/02/12 thru 06/01/12

65

1/12%

1%

80

6.67%

04/02/12 thru 05/01/12

65

1/12%

1%

81

6.75%

03/02/12 thru 04/01/12

65

1/12%

1%

82

6.83%

02/02/12 thru 03/01/12

65

1/12%

1%

83

6.92%

Before 02/02/12

65

1/12%

1%

84

7.00%

 To Link to this section - Use this URL: http://policy.ssa.gov/poms.nsf/lnx/0300615692 RS 00615.692 - Computing the Amount of the Delayed Retirement Credits (DRC) - 11/14/2014 Batch run: 11/14/2014 Rev:11/14/2014