Is Social Security Keeping Disabled Workers From Collecting Delayed Retirement Credits?

Originally posted on Forbes.com

Social Security benefits automatically convert to standard retirement benefits at full retirement age (FRA) and this retirement benefit can then be suspended. Here’s the story of one disability benefit recipient’s frustrating attempts to do so.

I asked James (a pseudonym) to write up his experience in trying to suspend his retirement benefit starting with his reaching full retirement age (FRA) in order to maximize his delayed retirement credits and receive the maximum available retirement benefit starting at age 70. As you can read in his statement below, he requested this suspension to occur before reaching FRA. But he was disabled (although his pre-FRA disability status was approved after he reached FRA). When you are receiving disability benefits, your retirement benefit automatically begins at FRA. Your disability benefit just changes names. But this automatic change of names gives you no formal way to suspend your retirement benefit before it starts. Nor can you withdraw your retirement benefit because you can only withdraw an application that you filed and the disabled never get the chance to file for their retirement benefit — it just happens automatically.

James has probably lost a year of his life in anxiety and upset over his attempts to get Social Security to respond to his request to not have his retirement benefit automatically begin, but to suspend it at full retirement. He sent this request before he reached full retirement age.

Here’s Jame’s painful account.

I filed for SS disability (DIB) and my application was approved Dec 2022 retroactive to 2021. My FRA was July 2022 and I wanted my DIB not to automatically convert to retirement benefits (RIB) at FRA but to wait until a later date.

Standard SSA practice is to automatically convert DIB to a retirement benefit (RIB) at FRA and I contacted them a few times and stated I did not want to convert but suspend my RIB. SSA continually advised that I had no choice and conversion was automatic, not optional.

The disability application online didn’t allow a future date to be entered for the question asking when you want retirement benefits to begin. In June 2022 I reviewed my application with an agent of on the phone and was told again I had no option to suspend my RIB. (Why then does the application ask the question?). In July 2022, I received an application summary and hand wrote to wait until 70 and mailed back to SSA — this request was ignored.

In July 2022, I found in SSA’s Program Operation Manual System (POMS) that my request to suspend RIB was permitted and the SSA advice after many communications was incorrect and misleading. At this point I sent a statement to SSA requesting again that my RIB be suspended upon DIB approval with a POMS reference. By pure luck my timing was good since the POMS states SSA be advised written or orally the month prior to FRA to suspend RIB.

SSA ignored my multiple requests and automatically converted my DIB to RIB at FRA. Further phone conversations remained consistent in SSA saying I had no choice but to automatically convert to RIB at FRA, and there was no interest in hearing the POMS guidance.

In Jan of 2023, I submitted, a reconsideration request. I called SSA a few times and they had no record of this (but confirmed receipt of my previous, but ignored, request to suspend) and they said on each call that there was a large mail backlog, and I should be patient and no other action was necessary.

I understand that upon approval I will need to return RIB paid since my FRA. My requests should allow me to receive my RIB at 70 at the same amount as if I initially applied for RIB at 70 (i.e.: as though my DIB never automatically converted at FRA).

While I still wait for any acknowledgement of my request from SSA in April of 2023, I took the following two steps after SSA confirmed by phone to still have no record of my reconsideration request (I have USPS confirmation of delivery). I resubmitted my reconsideration request to the regional SSA office instead of the local office and I sent a separate request (to multiple SSA offices to ensure receipt) to immediately suspend my RIB (since if my retroactive suspension request to FRA is never acted upon I avoid further loss of DRCs.)

I also discovered upon my own research that most likely after an automatic conversion of DIB, a normal request of withdrawal of RIB up to 12 months after commencement does not apply (since I didn’t make the application). Generally all my interactions with SSA were courteous and professional even while I believe I had received incorrect advice which was to my disadvantage, and SSA has not been responsive to my requests to suspend my RIB.

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Laurence Kotlikoff is a Boston University Economist, a NY Times Best Selling Author, President of maxifi.com, and Author of Money Magic.

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