Anne was born 5/31/1935, Bill was born 6/1/1935, Cory was born 6/2/1935 and Demi was born 6/3/1935. They all worked at the same job and had maximum earnings from 1961 through 1991. They attain age 62 as follows: Anne on 5/30/1997, Bill on 5/31/1997, Cory on 6/1/1997 and Demi on 6/2/1997. Anne, Bill and Cory can begin receiving benefits 6/1997 (the first month they are age 62 throughout the entire month). Demi must wait until 7/1997 because they are not age 62 throughout the entire month of 6/1997. FRA for all four is age 65 so the number of reduction months (RF) varies. In 6/1997 Anne has 35 RF, Bill has 35 RF and Cory has 36 RF. In 7/1997 Demi has 35 RF. Because all four claimants have the same earnings and attain age 62 in the same year the full (unreduced for age) benefit amount would be the same – $1207. After reduction for entitlement before FRA, payments are made as follows:

Anne - $972 starting 6/1997

Bill - $972 starting 6/1997

Cory - $965 starting 6/1997

Demi - $972 starting 7/1997

Now lets change the four-day period. Anne was born 12/31/1935, Bill was born 1/1/1936, Cory was born 1/2/1936 and Demi was born 1/3/1936. They all worked at the same job and had maximum earnings from 1961 through 1991. They attain age 62 as follows: Anne on 12/30/1997, Bill on 12/31/1997, Cory on 1/1/1998 and Demi on 1/2/1998. Anne, Bill and Cory can begin receiving benefits 1/1998 (the first month they are age 62 throughout the entire month). Demi must wait until 2/1998 because they are not age 62 throughout the entire month of 1/1998. FRA for all four is age 65 so the number of reduction months varies. In 1/1998 Anne has 35 RF, Bill has 35 RF and Cory has 36 RF. In 2/1998 Demi has 35 RF. Although all four claimants have the same earnings they attain age 62 in different years. The year of attainment of age 62 determines the indexing factors and bend points used in computing the benefit amount. Anne and Bill who attain age 62 in 1997 have a full unreduced benefit amount of $1232. Cory and Demi attain age 62 in 1998 and have a full unreduced benefit amount of $1266. After reduction for entitlement before FRA, payments are made as follows:

Anne - $992 starting 1/1998

Bill - $992 starting 1/1998

Cory - $1012 starting 1/1998

Demi - $1019 starting 2/1998

One last time with another four-day period. Anne was born 12/31/1937, Bill was born 1/1/1938, Cory was born 1/2/1938 and Demi was born 1/3/1938. They all worked at the same job and had maximum earnings from 1961 through 1991. They attain age 62 as follows: Anne on 12/30/1999, Bill on 12/31/1999, Cory on 1/1/2000 and Demi on 1/2/2000. Anne, Bill and Cory can begin receiving benefits 1/2000 (the first month they are age 62 throughout the entire month). Demi must wait until 2/2000 because they are not age 62 throughout the entire month of 1/2000. FRA for Anne and Bill is age 65. FRA for Cory and Demi is age 65 and 2 months. The number of reduction months varies. In 1/2000 Anne has 35 RF, Bill has 35 RF and Cory has 38 RF. In 2/1998 Demi has 37 RF. Although all four claimants have the same earnings they attain age 62 in different years. The year of attainment of age 62 determines the indexing factors and bend points used in computing the benefit amount. Anne and Bill attain age 62 in 1999 and have a full unreduced benefit amount of $1372. Cory and Demi attain age 62 in 2000 and have a full unreduced benefit amount of $1410. After reduction for entitlement before FRA, payments are made as follows:

Anne - $1105 starting 1/2000

Bill - $1105 starting 1/2000

Cory - $1116 starting 1/2000

Demi - $1122 starting 2/2000

Example One -

Example Two -

Example Three -