Retirement
Help Clients Maximize Social
Security Benefits Before Special
Claiming Options Change
On November 2, 2015, the Bipartisan Budget Act of 2015 became law.1 The new law
has a drastic impact on Social Security maximization strategies, most particularly
File and Suspend and the Restricted Application.
Helping Clients Before the Deadlines
There is still time to help eligible clients act before the April 30, 2016, effective date. Comb your list of
clients and contact those who meet the following:
✔File and Suspend: Married clients born on April 30, 1950, or before may take advantage of File and
Suspend by April 29, 2016.
✔Restricted Application for Spousal Benefit: Married clients or qualified divorcees2 born on January 1, 1954, or before may be eligible to file a Restricted Application.
Effective Dates and Claiming Deadlines for File and Suspend and Restricted Application Scenarios
Age 65½ or older by
Oct. 29, 2015 (born
April 30, 1950, or earlier)
Currently married
Unmarried divorced
spouse (Previously
married 10 years
or longer)
Individual
Surviving spouse
Age 62 or older in 2015
(born 1953 or earlier, or
on Jan. 1, 1954)
File and Suspend
Still available at FRA,*
must file by April 29, 2016
Restricted Application
Still available at FRA* if otherwise eligible for spousal benefits
File and Suspend
Under age 62 in 2015
(born Jan. 2, 1954,
or later)
Not eligible
Not eligible
Not applicable
Restricted Application
Still available at FRA* as long as former spouse also age 62 or older
Not eligible
File and Suspend
Must be FRA* and complete File
and Suspend by April 29, 2016,
for future reinstatement
File and Suspend or
Restricted Application
New rules not applicable. Can still independently choose timing of when to start survivor and
individual retirement benefits.
No future lump sum reinstatement
Source: Michael Kitces of the Nerd’s Eye View blog at www.kitces.com. View Kitces’ full table and article.
*FRA: Full retirement age = 66 for those born 1954 or earlier
Changes Overview
Born before April 30, 1950?
These clients are still eligible
to elect File and Suspend
which triggers spousal
benefit availability.
For Institutional Use Only
Not for Use
with Retail Investors
Not FDIC Insured
May Lose Value
Not Bank Guaranteed
File and Suspend (birthdate April 30, 1950 or before)
Clients whose date of birth is April 30, 1950, or before will be able to File and Suspend their benefits so
they can earn an 8% increase for every year they delay up to age 70 while triggering the availability of the
spousal benefit. For married couples and qualified divorcees,2 the spousal benefit entitles one spouse
to the higher of their own earnings or 50% of the spouse’s full retirement age amount less early claiming
reductions. However, to qualify for the spousal benefit, you must be age 62 and your spouse is receiving
a retirement benefit or has filed and suspended before the deadline. The File and Suspend deadline is
April 29, 2016.
After April 30, 2016, one spouse of a married couple at full retirement age may still earn the 8% delayed
credit up to age 70. However, there is no benefit to Filing and Suspending after April 30, 2016, since it will
not make spousal benefit available. In order for the spousal benefit to be made available, one spouse
must be receiving a benefit.
Born before January 1, 1954?
These clients may be
eligible to file a Restricted
Application up through 2019.
Restricted Application for Spousal Benefit (birthdate January 1, 1954 or before)
Clients whose birthdate is January 1, 1954, or earlier may be eligible to file a Restricted Application at full
retirement age if the spousal benefit is available. The advantage of filing a Restricted Application (must be
full retirement age or older) is that it allows one spouse or qualified divorcee2 to collect a spousal benefit
ONLY (half (½) of current spouse or ex-spouse’s full retirement age benefit) while the spousal benefit
filer’s own retirement benefit is suspended and earns 8% for each year until age 70. At age 70, the spousal filer can switch to their higher retirement benefit.
After April 30, 2016, those who are eligible (born on or before January 1, 1954) and are at full retirement
age may still file a Restricted Application to collect a spousal benefit while letting their own benefit gain an
8% increase up to age 70. However, the spousal benefit must be made available:
• For married couples: one spouse must have Filed and Suspended benefits before the April 30, 2016,
deadline; OR is currently receiving their retirement benefit.
• For qualified divorcees, the ex-spouse must be at least age 62 and is eligible to receive or is receiving
either a retirement or disability benefit.
The Restricted Application filing deadline is the end of 2019. After 2019, the Restricted Application
will not be permitted.
Lump Sum Payout
Clients that have Filed and Suspended benefits or File and Suspend before April 29, 2016, may elect
to reinstate benefits and receive a lump sum payment (less the 8% delayed credits) dating back to the
original date of the File and Suspend. Those that elect to File and Suspend after the April 29, 2016, deadline may reinstate the retirement benefit at any time up to age 70, but are not eligible to receive a lump
sum payment.
Surviving Spouse
The changes do not impact the survivor benefit so an eligible recipient may choose the timing of when to
start survivor and individual retirement benefits.
1. Source: Congress.gov (https://www.congress.gov/bill/114th-congress/house-bill/1314)
2. Source: SSA.gov. You may qualify to receive benefits on your ex-spouse’s record if you are divorced; your marriage lasted 10 years or longer;
you are unmarried; you are age 62 or older; your ex-spouse is entitled to Social Security retirement or disability benefits.
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RPL0000.323.1215 December 15, 2015