I received disability benefits which were converted to retirement benefits less than a year ago. I would like to withdraw those benefits so they can grow until age 70. I understand that a withdrawal request when an automatic conversion is involved is governed by GN 00206.001 F, which incorporates by reference GN 00206.005A. The latter provision itemizes the types of benefits that must be repaid upon a WD request when an automatic conversion is involved and, importantly, does NOT include disability benefits among the itemized benefits that must be repaid. It seems to me that a logical interpretation of GN 00206.001 F is that a WD request involving an automatic conversion is treated the same as a WD of an applicatioin for retirement benefits - especially given the fact that a disabled person could have simply elected NOT to convert the disability benefits into retirement benefits so that he/she could allow those retirement benefits to grow until the individual turned age 70. Why should a disabled person not have the same right to withdraw that election to convert disability payments into retirement benefits within the first year, without forfeiting all disability payments received in past years? It makes no sense, especially when nothing in GN 00206.005A2 indicates that disability benefits must be repaid. It seems to me that reference in GN 00206.001F to repayment of benefits awarded before and after the conversion occurred means the benefits identified in GN 002006.005A2, as that section is referenced and therefore incorporated by referene. Your thoughts? Thank you in advance for your reply.
Hi,
Your points are well taken, but Social Security won't allow you to decline the conversion from Social Security disability (SSDI) benefits to regular Social Security retirement benefits that occurs automatically at full retirement age (FRA) unless you withdraw your claim for SSDI benefits and repay all of the benefits that were payed based on your SSDI application. That includes any Medicare reimbursements that were paid prior to the month that you reached age 65, since any earlier Medicare eligibility would have been contingent on your entitlement to SSDI.
Larry and I both disagree with the above policy, by the way, but Social Security's interpretation will stand unless and until someone successfully challenges their policy through the appeals process. For more on this topic, you may want to read the following article that Larry wrote: https://www.pbs.org/newshour/nation/social-securitys-christmas-present-b....
To be clear, though, you could still request voluntary suspension of your Social Security retirement benefits between now and when you reach age 70 in order to earn delayed retirement credits (DRC). However, you couldn't voluntarily suspend your benefits any earlier than effective with the month following the month that you make the request (https://www.ssa.gov/planners/retire/suspendfaq.html). Nor could you be paid any other type of Social Security benefits (e.g. spousal, survivor) while your benefits are suspended.
Best, Jerry
