Retroactive Entitlement of Retired-Worker Beneficiaries Awarded Benefits in 1971

A provision in section 202(j) of the Social Security Act enables an applicant for social security benefits to become entitled to benefits retroactively for as many as 12 months before the month in which he filed his application, if all requirements have been met for the retroactive period. A fully insured worker who applies for benefits in December 1974, for example, on attaining age 63 may elect retroactive entitlement beginning with December 1973. If, however, the worker is only 62 years and 6 months old when he applies, the retroactivity period cannot be more than 6 months. The retroactivity provision gives partial protection to individuals who fail to file in time because they have not been aware of their eligibility for benefits. In certain instances, the provision also enables persons affected by the annual retirement test to obtain additional benefits1 The data presented here on retroactive entitlement to retired-worker benefit awards in 1971 are derived from the Social Security Administration master beneficiary record, which contains detailed benefit information for all beneficiaries. The pattern of retroactive entitlement is shown separately, for both men and women workers, by the reduction and payment status of the awards, as well as by the worker’s age in the month of filing for benefits. Awards may be immediately payable (in cur, rent-payment status), or they may be withheld for a definite period (in deferred status) or for an indefinite period (in conditional status). Most conditional and deferred awards are made to beneficiaries who cannot currently receive benefits because of the application of the retirement test.