Last week congress signed into law The Bipartisan Budget Bill of 2015 which has created major changes to Social Security and will affect the popular file-and-suspend restricted application claiming strategies. Once the Social Security Administration has updated the rules based on these new laws, it may be necessary to re-evaluate the best available claiming strategy for you.
Keep in mind, if you are already receiving social security benefits you will not be affected by the new rules. Further, those who will reach full retirement age before April 30, 2016 will still have the opportunity to file-and-suspend and anyone who reaches age 62 before December 31, 2015 will still be able to do a restricted application for spousal (or divorced or ex-spousal) benefits, even if the filing does not occur until years later.
We are committed to working with our clients to navigate through these changes and will be reaching out proactively to those whom we believe are affected. However, to ensure that no one is overlooked, we encourage you to contact your Empirical advisor if you believe you are affected by the new rules.
Once the Social Security Administration has fully interpreted the new law, we will be able to provide specific advice on how to maximize these important benefits. We are hopeful that this will occur in the next 30 days.
For your further information we have provided Empirical’s understanding of these new rules below:
We will continue to stay abreast of the developments and update this message as we know more. If you have any questions in the meantime, please do not hesitate to contact us.