Regarding the government changing SS benefits for those close to FRA, this has to happen through a legislative change, right?
Yeah, we thought so. Right up until a recent Supreme Court case, where it was determined that an agency, like the IRS for example, can re-interpret a law.
And in 2010 the SSA itself unilaterally changed the "withdraw-and-reapply" option --- with no change of legislation.
If that's the case, then couldn't you go down your local SS office and apply before the legislation becomes law?
It wouldn't make any difference. Often (but not always) a change is made effective retroactive to the first date they considered the change, not the date when it becomes law. Especially it means a large amount of extra money for the government.
SSA didn't do this in the withdraw-and-reapply case because that strategy was more hype than actual value.
IRS did this for a number of tax increases, made a mid-year increase effective as of the first of that year.
If that's the case, then I'm puzzled why people would use this reason to take SS early to lock in their benefit. This seems like a non issue to me, but I'm curious if I'm missing something.
What you are missing is that you are assuming that there is a significant financial advantage in taking SS at any particular age. There isn't.
When properly figured (that is, when you take into account the time value of money) the NPV is only trivially different whether you file at 62 or at 70 or any age between.
People aren't taking SS early to "lock in their benefit". They are taking it early because there is no net financial reason to prefer one age to any other age -- so no reason to _not_ file early -- and because it is more convenient to them to start early.
It's like ice cream flavors. Some people take vanilla, some people take chocolate. But neither flavor is right or wrong, they are the same in and of themselves, its just a matter of taste preference.
Arguing that 70 is better than 62 is like arguing that chocolate is better than vanilla. It isn't, it's neither better nor worse, just different.