By Mary Beth Franklin
Assuming the Senate passes the legislation and President Obama signs it, these are the changes to look out for.
FILE AND SUSPEND
If you have already filed and suspended your benefits approximately May 1, 2016 — you can still request to file and suspend your benefits to trigger spousal or dependent benefits.
If you are 66 or older within the first six months after the law is enacted in order to trigger spousal benefits for your wife or husband and/or dependent benefits for a minor or disabled child, your family will continue to receive benefits on your earnings record.
After May 1, 2016 (approximate date), the rules for file and suspend will change.
No one will be able to collect benefits when the primary beneficiary files and suspends. And the person who files and suspends will no longer be able to request a lump sum payout of suspended benefits at a later date.
After May 1, 2016, the only use of file and suspend will be for those people who claimed reduced Social Security benefits before full retirement age. They will still be able to suspend benefits in order to earn delayed retirement credits of 8% per year between ages 66 and 70. But no one will be able to collect spousal or dependent benefits; known as auxiliary benefits; while the primary beneficiary suspends benefits.