I am 66 (11/50) and my wife is 62 (3/54). I filed at 62 four years ago and she filed this year, also at 62. Since 50%of her PIA is greater than my PIA, I am filing for Excess Spousal Benefits. I was told at the local SSA that all my benefits (including spousal) had been permanently reduced when I filed for my own benefits early and that my spousal benefit would be the same whether I filed in Oct or Nov (the month I turn 66). Having been a devotee of your advice since I discovered it, I thought this was false but since the benefit amount was close to the one I had obtained from Maximize, I let it go. I have 2 questions. Were they indeed wrong, as I thought? Also, since I will begin collecting one month early, will the reduction (the 25/36% per mo.) be applied to my wife's PIA before figuring Excess Spousal Benefits or applied to the Excess Spousal Benefit itself? Thanks for all the very important advice, especially the part about not believing everything (or anything?) they tell you!

Hi,

Yes, it sounds like what you were told by the Social Security representative was wrong on a couple of accounts. First, you weren't deemed to have filed for spousal benefits when you filed on your own record, since your wife was not yet entitled to her benefits. And second, if you had waited until November to start drawing your excess spousal benefit, the benefit amount would have been unreduced. As it is, though, by starting your excess spousal benefit a month early, you're only taking a rate reduction of 25/36ths of 1%, so it's probably not that big of a difference. Still, it's very disappointing to me as a former Social Security technical expert to hear about instances of current employees giving out incorrect information.

To answer your other question, the 25/36ths of 1% reduction is applied to your excess spousal benefit, not your wife's PIA. So, the calculation goes as follows: (50% of your wife's PIA minus your own PIA) multiplied by 99 & 11/36%. The excess spousal benefit will then be added to your own reduced retirement rate to arrive at your total monthly benefit rate. For others reading this, by the way, PIA stands for primary insurance amount, which is essentially the worker's full retirement age benefit rate.

The new deeming law passed by Congress last year (https://secure.ssa.gov/apps10/reference.nsf/links/02052016024404PM) had no effect on you, since you were born prior to January 2 1954. However, people born after 1/1/1954 are deemed to have also applied for spousal benefits when they apply on their own account, even if they don't become eligible for the spousal benefit until a later date. Even then, however, the reduction percentage applicable to their excess spousal benefit is determined by the number of months, if any, that they become eligible for the excess spousal benefit prior to their full retirement age.

Best, Jerry