20 CFR 225.34  How the amount of the DRC is figured.
(a) The amount of the DRC depends on 
(1) The year the employee reaches full retirement age; and
(2) The number of months for which the credit is due, as explained in § 225.33.
(b) The percent given in paragraph (b)(1), (2), or (3) of this section is multiplied by the PIA; that product is then multiplied by the number of months for which credit is due and rounded to the next lowest multiple of $0.10, if the answer is not already a multiple of $0.10. The result is the DRC which is added to the PIA.
(1)Employee attained age 65 before 1982. The DRC equals onetwelfth of one percent of the PIA times the number of months after 1970 in which the employee is age 65 or older and for which credit is due.
(2)Employee attains age 65 after 1981 and before 1990. The DRC equals onefourth of one percent of the PIA times the number of months in which the employee is age 65 or older and for which credit is due.
(3) Employee attains age 65 in 1990 and before 2003.
(i) The rate of the DRC (onefourth of one percent) is increased by onetwentyfourth of one percent in each even year through 2002. Therefore, depending on when the employee attains age 65, the DRC percent will be as follows:
Year employee attains age 65  Delayed retirement credit percent 

1990 

1991  Do. 
1992 

1993  Do. 
1994 

1995  Do. 
1996 

1997  Do. 
1998 

1999  Do. 
2000 

2001  Do. 
2002 

(ii) The delayed retirement credit equals the appropriate percent of the PIA times the number of months in which the employee is age 65 or older and for which credit is due.
(4) Employee attains full retirement age in 2003 or later. The rate of the DRC (onefourth of one percent) is increased by onetwentyfourth of one percent in each even year through 2008. Therefore, depending on when the employee attains full retirement age, the DRC percent will be as follows:
Year employee attains full retirement age  Delayed retirement credit percent 

2003 

2004 

2005  Do. 
2006 

2007  Do. 
2008 and later 

(c)Example: Mr. Jones was qualified for a full age and service annuity when he reached age 65 in January 1985, but decided not to apply for an annuity because he was still working. Mr. Jones stopped working on December 31, 1985, and applied for his annuity to begin January 1, 1986. Based on his earnings, his PIA was $350.50. Since Mr. Jones did not receive an annuity for the 12 months from the month in which he became 65 (January 1985) until the month following the month he stopped working (January 1986), he is due credit for each of those 12 months. The total amount of his DRC's is calculated as follows:
Percent  PIA  No. of months  Unrounded result  Total amount of DRC's  

.25%  X  350.50  X  12  =  10.51  =  $10.50 