TN 24 (09-02)
RS 00615.690 Delayed Retirement Credits (DRC) -- General
CITATIONS: DRC statutory provisions are in section 202(w) of the Social Security Act. Regulatory rules are in 20 C.F.R. 404.313.
A. POLICY - DRCs
The DRC provisions allow a credit for any month for which a worker
DRC also apply to totalization claims. For instructions on what months to consider for DRCs in totalization claims, see GN 01701.240.
a. Earning DRCs
A worker can earn a DRC for any month after 1970 beginning with the month of attainment of FRA and ending with the month before attainment of age 70 (72 prior to 1984 - see RS 00615.690A.2.c.). Each credit is referred to as an increment month. An increment month is granted for any month in that period for which:
the worker was insured but benefits were not paid because an application was not filed, or
benefits were due but not paid because of the annual earnings test, or
benefits were due but not paid because of the foreign work test, or
benefits were due but the worker elected to have his/her benefit voluntarily suspended in order to earn DRCs. This last option applies only to benefits payable after 1999. Information about how to process these suspensions is located in GN 02409.000.
NOTE: Months of partial work deductions and deductions against benefits other than RIB do not qualify as increment months.
b. Deceased Worker's DRCs
A deceased worker's DRCs will be used to increase benefits to her/his widow(er).
c. End Of The Period For Which DRCs Are Earned
The 1983 amendments changed the end of the period for which DRCs could be earned from age 72 to age 70. This change was phased in as follows:
For those born 1/1/1912 or earlier, DRCs were granted up to age 72.
For those born 1/2/1912 - 1/1/1914, DRCs were granted through 12/83.
For those born after 1/1/1914, DRCs are granted up to age 70.
3. When DRCs First Apply
a. Retirement Benefits
DRCs are used to increase a retirement benefit beginning:
b. Widow(er)'s Benefits
A deceased worker's DRCs are used to increase the widow(er)'s benefit beginning 6/78. NOTE: A widow(er) can be granted DRCs for months the worker was not entitled to benefits even if the worker received a pension from RRB (including LAF E cases). The RRB pension does not preclude DRCs for the widow(er). See RS 00615.702 for more information about widow(er) DRCs.
4. Interactive Computation Facility (ICF)
Refer to MSOM ICFT2 002.001 for instructions on how to use ICF to compute benefit amounts with DRCs.
B. POLICY – EFFECTIVE DATES
1. When Benefits Are Increased Because Of Increment Months
DRC increases are effective either:
January of the year following the year the increment months were earned; or
The month of attainment of age 70 (age 72 when applicable); or
The month of death for widow(er)s.
2. Non-Entitlement Or Voluntary Suspension
DRCs for non-entitlement or voluntary suspension months are effective January of the following year. For the year of attainment of age 70 see RS 00615.690B.4. Months of voluntary suspension are shown on the MBR as S-9 with an RFST of “LEGISL” or “VOLDRC”. For more information about voluntary suspension see GN 02409.100.
3. Work Deductions
DRCs for months of work deductions are effective January of the following year but are granted only when the year is closed for work deduction purposes. For the year of attainment of age 70 see RS 00615.690B.4. See RS 02510.000. for more information about when a year is closed. NOTE: Beginning in 01/00 work deductions no longer apply to those at or over FRA so we will no longer have people in work deductions when they attain age 70.
4. Age 70
DRCs for all non-entitlement or voluntary suspension months may be added immediately upon attainment of age 70. DRCs for months of work deductions in the year of attainment of age 70, although effective with the month of attainment of age 70, will be granted only after the year is closed for work deduction purposes. Non-entitlement months include all months before the first month of entitlement for which the worker was at or over FRA and met the insured status requirement.