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Summary Measures and Graphs

Description of Proposed Provision:
Give parents earnings credits for up to five years if they have a child under 6. The earnings credited for a childcare year would be such that the resulting earnings assigned to the parents would equal one half of the Social Security average-wage index -- about $21,542 in 2010. The credits would be available for all past years to newly eligible retired-worker and disabled-worker beneficiaries in 2011 and later. The 5 most advantageous years would be used if more than 5 childcare credit years are possible; that is, the 5 years that make the biggest difference in indexed earnings.

Estimates based on the intermediate assumptions of the 2010 Trustees Report

Summary Measures
[As a percentage of taxable payroll]
Present Law Change from present law Results with this provision
Long-range
actuarial
balance
Annual
balance in
75th year
Long-range
actuarial
balance
Annual
balance in
75th year
Long-range
actuarial
balance
Annual
balance in
75th year
-1.92 -4.12 -0.28 -0.41 -2.20 -4.52


graph of OASDI cost rates and income rates by year, under
                 present law and provision. click on graph to view underlying
                 data. graph of OASDI trust fund ratio by year, under present law
                 and provision. click on graph to view underlying data.
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Last reviewed or modified March 2, 2011