Proposed Provision: Progressive price indexing of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2013. Create new bend point at the 30th percentile of earners. Maintain current-law benefits for earners at the 30th percentile and below and reduce upper 2 formula factors (32% and 15%) such that maximum worker benefit grows by inflation rather than the growth in average wages. Disability benefits are not affected by the proposal. Disabled worker beneficiaries, upon attaining normal retirement age, would be subject to a proportional reduction in benefits based on the worker's years of disability. In addition, the reduction to the upper 2 formula factors is suspended for any year in which sustainable solvency over the next 75 years is expected. With this provision taken alone, suspension is not expected within the next 75 years.

OASDI Trust Fund Ratio
(assets as a percentage of annual expenditures)

Year Present Law Provision
2009354354
2010360360
2011366366
2012369369
2013367368
2014364365
2015359360
2016354356
2017347349
2018338341
2019327332
2020315321
2021302310
2022289299
2023275286
2024260274
2025244260
2026227246
2027209232
2028191216
2029173201
2030153185
2031133169
2032113153
203392136
203471120
203550104
20362987
2037771
2038-1654
2039-3838
2040-6122
2041-837
2042-106-9
2043-129-24
2044-152-39
2045-175-53
2046-199-67
2047-222-81
2048-246-95
2049-270-109
2050-294-122
2051-318-135
2052-342-148
2053-366-160
2054-391-173
2055-415-185
2056-440-197
2057-466-209
2058-491-221
2059-517-233
2060-544-245
2061-570-256
2062-598-268
2063-625-280
2064-653-291
2065-681-302
2066-710-314
2067-739-325
2068-768-336
2069-798-348
2070-828-359
2071-859-370
2072-890-382
2073-922-393
2074-954-405
2075-987-416
2076-1020-428
2077-1054-440
2078-1089-452
2079-1124-464
2080-1159-476
2081-1195-488
2082-1232-500
2083-1270-512
2084-1308-525
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