W became entitled to and began receiving old age social security insurance benefits at age 62 in June 1957. Her benefit amount was $32.20 per month, which was reduced from her primary insurance amount of $40.20 per month because of her early retirement
She was also entitled to widow’s benefits of $56.10 per month. Her widow’s benefits were reduced by the amount of her retirement benefits, so that the combined amount of her monthly benefits was $56.10.
In January 1961 W began working again and her benefits were suspended because of work deductions. In January 1964 she notified Social Security that she had stopped working and requested a recomputation of her benefits. Because of her new work activity, her primary insurance amount had increased to $99.00 per month. However, because of her early retirement, this amount was reduced by 5/9 of one percent multiplied by 36, which was the number of months she had received early retirement benefits prior to her full retirement age of 65. The effect of this reduction was to decrease her monthly benefit to $79.20 per month.
W requested to withdraw her earlier application for early retirement benefits. She argued that her receipt of early retirement benefits had not advantaged her because she would have been entitled to the same amount in widow’s benefits even if she had not applied for early retirement. In addition, because of her work activity she had received no benefits for the years 1961, 1962, and 1963.
Social Security regulations allow an initial determination to be reopened within 12 months of a decision for any reason and within 4 years of a decision based on a showing of good cause. W was outside of the time limit.
However, an amendment to the Social Security Act provided that an application for benefits could be withdrawn if several conditions were met: 1) the fewest for withdrawal must be in writing to the social security Administration; 2) the person requesting withdrawal is alive at the time the request is made (in other words, the request may not be made on behalf of a deceased person); 3) and the Administration approves the withdrawal request. If the withdrawal request is made after the date a determination was made on the application, then two additional requirements must be met: 4) any other person whose entitlement to benefits would become erroneous because of the withdrawal must consent to the withdrawal in writing; and 5) any benefits paid on account of the prior application must be refunded or the Administration must be convinced that the repayment of such benefits is assured.
The intent of this amendment was to allow an application to be rescinded when inequities would result, such as when a filing was useless or premature and resulted in no advantage to the applicant.
Because W met all the requirements of this amendment, her withdrawal request was approved and she was entitled to the full $99.00 per month primary insurance amount.
See Social Security Ruling (SSR) 65-17.
