Social Security at 70 with CSRS offset - DRCs calculation and retroactive benefits question
I'm hitting age 70 in August and have a complicated situation with my Civil Service Retirement System (CSRS) and Social Security benefits. I've been delaying SS retirement benefits all these years to get those Delayed Retirement Credits (DRCs), while working and receiving my CSRS pension. I earn regular W-2 income plus have a side business with self-employment income. I'm trying to figure out: 1) Will my SS benefit automatically include adjustments for all the months I didn't collect, or is that already factored into the DRCs calculation? 2) My benefit on my own record exceeds what I'd get as a spouse. Should I just file now, wait till exactly 70, or file now but request up to 6 months of retroactive benefits? I submitted an online application back in January with a note asking for detailed figures, and got an automated message saying I'd hear within 30 days. It's been over a month with no response. When I log into my account, I can only see my basic benefit statement and work history - no specifics about my actual filing options with the CSRS offset factored in. Any advice would be appreciated!
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Zara Perez
You definitely want to understand your options with the CSRS offset! My husband went through something similar last year. The WEP (Windfall Elimination Provision) reduced his SS benefit by about 40% because of his government pension. Have you been able to get through to SSA by phone? The online system isn't very helpful for complicated cases like yours.
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Benjamin Johnson
•I've tried calling FIVE times and keep getting disconnected or told the wait is over 2 hours! It's so frustrating because I need to understand if I should file for those retroactive benefits or if that would somehow reduce my DRCs. The WEP reduction is definitely a factor too.
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Daniel Rogers
Just FYI the online system NEVER shows the actual WEP/GPO reductions. Those calculations are done manually by SSA reps because they have to factor in your CSRS pension amount. Thats why your benefit estimator doesn't show the right numbers.
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Aaliyah Reed
•This is 100% correct. I work as a financial advisor specializing in federal employees and the online calculators don't account for WEP/GPO reductions. For your specific questions: 1) Your DRCs accrue at 8% per year (2/3 of 1% per month) between your FRA and age 70. This is automatic - once you file, they'll calculate all months of delay up to the month you start benefits. 2) Regarding retroactivity: If you file at age 70, you CAN request up to 6 months of retroactive benefits. However, this effectively means you're filing at 69.5 instead of 70, so you'll lose those last 6 months of DRCs (about 4% of your benefit). Whether this is worth it depends on your life expectancy and cash flow needs. With the CSRS offset, you definitely need to speak with someone who can run your specific numbers considering both the WEP reduction and DRCs.
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Ella Russell
I went through EXACTLY this last year!!! After fighting with SSA for months I finally got someone on the phone who explained that they do NOT automatically give you the retroactive benefits, you HAVE to specifically request them. And yes, you lose the DRCs for those months. For me the lump sum payment was worth more than the slightly higher monthly amount.
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Benjamin Johnson
•That's good to know about having to specifically request retroactive payments. How much time did it take from when you requested the retroactive benefits until you actually received them? I'm trying to plan my cash flow for the next few months.
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Mohammed Khan
not sure if this helps but my mom had CSRS and when she finally got ss benefits at 68 she got what they call a "modified WEP" calculation because she had like 25+ years of substantial earnings under social security too. did you work enough years paying into SS to qualify for the modified calculation?
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Aaliyah Reed
•Great point about the substantial earnings years! The WEP reduction is lessened if you have 21+ years of "substantial earnings" under Social Security, and eliminated completely at 30+ years. For 2025, "substantial earnings" means making at least $31,725 in SS-covered employment. OP, this could significantly affect your benefit amount depending on your work history outside of CSRS.
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Gavin King
I recently helped my father-in-law with almost the exact same situation. He was about to turn 70, had CSRS pension, and couldn't get answers about his SS filing options. After weeks of failed attempts to reach someone at SSA, we tried using a service called Claimyr to get through to a representative. It worked surprisingly well - we got a callback within about 30 minutes instead of waiting on hold for hours. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU Once we got through, the SSA rep was able to run calculations showing exactly how much he'd get with the WEP reduction applied, and could show the difference between filing at 70 vs. taking 6 months retroactive. For him, the retroactive payment was substantial enough to be worth the slightly lower monthly amount.
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Benjamin Johnson
•Thank you! I'm going to look into that service right now. At this point I'd pay anything to just get a human on the phone who can actually explain my options. I need to decide about the retroactive benefits before my birthday in August.
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Nathan Kim
Pple here r giving good advice but don't forget about the earnings test if ur still working! If ur past FRA, it doesn't matter, but if u take retroactive payments to before FRA and ur earnings exceeded the limit, they can take some of that retroactive $ back!
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Aaliyah Reed
•This would only apply if the retroactive benefits extended before their Full Retirement Age. Since the original poster is turning 70 and retroactive benefits can only go back 6 months maximum, they would still be well past their FRA (which would be 66-67 depending on birth year). So the earnings test wouldn't apply in this specific case.
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Daniel Rogers
The CSRS offset is an absolute nightmare to figure out!!! I worked for the govt for 28 years and despite dozens of calls nobody at SSA could explain it properly. When I finally got my benefits they were WAY lower than the online estimates. Make sure you keep calling until you get someone who ACTUALLY understands CSRS cases!!
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Mohammed Khan
•same with my mom!! she was expecting like $1400/month based on the online calculator but after WEP it came down to like $850. such a shock!
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Aaliyah Reed
To sum up what you need to know about your specific situation: 1. DRCs: You earn 8% per year in delayed credits from your FRA to age 70. This is calculated monthly (2/3% per month). These stop accumulating at age 70. 2. Retroactive benefits: At age 70, you can choose to receive up to 6 months of retroactive benefits, but this means your benefit amount would be calculated as if you filed 6 months earlier (losing those final DRCs). 3. CSRS impact: Your CSRS pension will trigger the Windfall Elimination Provision (WEP), which will reduce your Social Security benefit. The reduction depends on your years of "substantial earnings" under Social Security. 4. Filing decision: The choice between maximum DRCs vs. retroactive benefits is essentially: - Maximum monthly amount for life (filing at 70 with no retroactive) - Slightly lower monthly amount for life PLUS a lump sum payment (retroactive option) The math favors taking maximum DRCs if you expect to live past approximately age 82-83. Otherwise, the retroactive option might be better financially.
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Benjamin Johnson
•Thank you for breaking this down so clearly! This helps a lot. I think I need to get my actual WEP-adjusted benefit amount before I can make the final decision about retroactive benefits. If the WEP reduction is going to be significant, that lump sum payment might be more valuable to me.
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