Hi Larry
I started claiming SS at age 66 in 2016- my retirement age (born in 1949) but then back to work in 2018 and I am
still working. I am now earning a salary that is higher than about 30 of my 35 years working that were previously
used to calculate my original benefits. I have not seen an increase (besides the COLA) in 2019 or this year yet. When I called to SS yesterday- the rep was very laid back and said that I should wait until November 2020 to see if I see any increase but that I should not expect a retro increase for 2019. This seems very wrong to me since as far as I know, the increase should have been automatic in 2019 and this year. Can you please suggest the next steps I should take - call, email, letter..to remedy this situation? thanks a lot - Susan

Hi Susan,

If you have a year of earnings that's higher than one of the 35 years previously used to calculate your benefit rate, then your benefit rate should be increased automatically. Such increases are processed annually in the fall, and any resulting benefit increases are retroactive to the person's benefit payment for January of the year following the year of the higher earnings. For example, if you're due a benefit increase as a result of your 2019 earnings, your rate adjustment should be processed roughly in the fall of 2020 and the increase would paid retroactive to your benefit payment for January 2020.

You can potentially speed up the process by submitting proof of your earnings (i.e. W-2 forms for wages, or Schedule SE from you tax return for self-employment) to Social Security along with a written and signed request for a manual recomputation of your benefit rate.

I should point out, though, that wage-indexing is used when determining the countable amount of earnings that you're credited with for purposes of calculating your benefit rate. In other words, your creditable earnings are adjusted to reflect increases that have occurred in the average annual wage base. The result is that you'd be credited with more than you actually earned in years prior to the year you reached age 60. For example, if the average person earned half as much in 1990 as they did in the year you turned 60, you'd receive credit for twice as much as you actually earned in 1990 when Social Security calculates your benefit rate.

Therefore, you can only expect to see an increase in your benefit rate if your earnings in a year are higher than they were in one or more of your previous highest 35 earnings years of earnings after wage-indexing has been applied to those earnings (https://www.ssa.gov/pubs/EN-05-10070.pdf).

Best, Jerry