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1994-96 Advisory Council Report

 

Table 3A. StdVal NoTaxAdj

Comparison of "Moneys Worth" for the OASDI Program for Present Law and Advisory Council Options with Reduced CPI*

Ratio of Benefits to Taxes (in present value) for Composite Workers and Married Couples with Two Earners

AGE 22 IN 1971

   

Composite Workers

 

Married, Two Earner Couples

Package (TF
Int)		 Low
Erns		 Ave
Erns		 High
Erns		 Max
Erns		 Total   Low/
Low		 Ave/
Low		 Ave/
Ave		 High/
Ave		 High/
High
Present Law (2.3) 99 78 68 71 77   94 86 70 67 58
5% PSA-401K (2.3) 100 76 65 65 74   97 83 70 64 59
5% PSA-USBond (2.3) 99 74 64 63 73   96 81 68 63 57
1.6% IA-401KAn (2.3) 94 74 64 64 72   91 81 68 63 57
1.6% IA-USBond (2.3) 94 73 63 63 72   91 81 67 63 56
MB (4.2) 99 78 68 70 76   94 86 70 67 58
MTR (2.3) 94 73 62 62 71   91 80 66 62 55
LTR (2.3) 99 72 60 60 70   95 80 65 60 53

AGE 22 IN 1995

   

Composite Workers

 

Married, Two Earner Couples

  (TF
Int)		 Low
Erns		 Ave
Erns		 High
Erns		 Max
Erns		 Total   Low/
Low		 Ave/
Low		 Ave/
Ave		 High/
Ave		 High/
High
Present Law (2.3) 121 95 82 78 92   116 105 86 82 71
PL PAYGO (2.3) 115 90 78 74 87   110 100 82 78 68
5% PSA-401K (2.3) 145 106 90 81 103   145 117 101 93 86
5% PSA-USBond (2.3) 129 91 75 66 87   129 101 85 77 71
1.6% IA-401KAn (2.3) 122 95 77 70 89   122 103 90 79 70
1.6% IA-USBond (2.3) 115 88 70 63 83   115 96 83 72 63
MB (4.2) 121 95 82 78 92   116 105 86 82 71
MTR (2.3) 116 85 65 58 79   115 93 80 67 57
LTR (2.3) 141 84 60 48 79   140 98 75 63 54

AGE 22 IN 2019

   

Composite Workers

 

Married, Two Earner Couples

  (TF
Int)		 Low
Erns		 Ave
Erns		 High
Erns		 Max
Erns		 Total   Low/
Low		 Ave/
Low		 Ave/
Ave		 High/
Ave		 High/
High
Present Law (2.3) 129 101 87 82 98   124 112 92 88 76
PL PAYGO (2.3) 104 82 70 66 79   100 91 75 71 62
5% PSA-401K (2.3) 150 111 94 85 107   152 122 106 97 91
5% PSA-USBond (2.3) 132 92 76 67 89   133 104 87 79 72
1.6% IA-401KAn (2.3) 127 99 80 72 93   129 107 95 83 73
1.6% IA-USBond (2.3) 119 90 71 64 84   120 99 86 74 65
MB (4.2) 126 99 85 80 96   121 110 90 86 75
MTR (2.3) 119 86 65 57 80   120 96 82 68 58
LTR (2.3) 146 84 58 44 79   148 101 75 62 52
* The moneys worth ratio is the ratio of expected benefits to expected employee plus employer taxes, both in present value.
* Assuming 0.21% lower COLA starting Dec 97; no change in nominal wage or interest.
All values based in intermediate assumptions of the 1995 Trustees Report*.
 
Office of the Actuary / Social Security Administration
July 28, 1996

NOTE: Tables 3A, 3As, and 3Am provide comparisons of "money's worth" ratios derived from contributions and benefits from both the OASDI program and the individual accounts under the various plans. Backup information may be obtained by selection of the following :

 
 
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