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 they attained their full
retirement age of 66 in July 2011. They are entitled to a benefit of $1000 (full PIA)
but elected to suspend their benefits and earn DRCs beginning with July 2011. They
earned DRCs of 2/3 of 1 percent per month, or 8 percent a year. In July 2015, they
attained age 70. If they remained in suspense for the entire period, they earned 48
DRCs for a total increase of 32 percent. Their 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 they attained their FRA of 66 in November
2010. Based on a new claim for RIB filed in January 2011, they were entitled to a
benefit of $1,000 (full PIA) as of November 2010, but elected to voluntarily suspend
their benefit and earned DRCs beginning with November 2010. They earned DRCs until
age 67 in November 2011, when they asked to have their benefits reinstated as of November
2011. They earned two DRCs in 2010, which were payable for November 2011 and December
2011 and increased their benefit of $1,013.30. They earned an additional 10 DRCs in
2011, which were first payable in January 2012, and increased their benefit to $1,080.80
effective January 2012.