Table 1--Financial Effects of the Senator Lindsey Graham Proposal Assuming a 100% Participation Rate
IA proceeds go to surviving spouse's individual account if worker dies before entitlement
Ultimate Real Trust Fund Interest Rate 3.00
Ultimate Real IA Rate for Offset 2.70
Assumed IA Participation Rate1 100%
Year
OASDI
Trust
Fund
Ratio
1-1-Year
Marginal Changes in
OASDI Contribution Rate
Net
OASDI
Contribution
Rate
IA Contribution Rate4
Cost
Rate2
Income
Rate3
Annual
Balance
From IA
Contributions
General
Fund
Transfers
From
Trust
Funds
Low-Income
Subsidy from
General
Fund
Total IA
Contribution
Rate
2003
10.89
12.70
1.81
288
 
 
12.40
 
 
 
2004
10.82
12.69
1.88
309
 
 
12.40
 
 
 
2005
10.73
12.70
1.97
330
 
 
12.40
 
 
 
2006
10.73
11.59
0.85
349
-2.39
1.25
11.26
2.39
0.21
2.60
2007
10.74
11.59
0.84
359
-0.04
 
11.22
2.43
0.21
2.64
2008
10.81
11.59
0.79
368
-0.03
 
11.19
2.46
0.21
2.67
2009
10.92
11.60
0.68
375
-0.03
 
11.16
2.49
0.21
2.70
2010
11.05
11.62
0.57
380
-0.03
 
11.13
2.52
0.21
2.73
2011
11.21
11.68
0.47
384
-0.02
 
11.11
2.54
0.21
2.76
2012
11.39
11.72
0.33
388
-0.02
 
11.09
2.56
0.21
2.78
2013
11.60
11.76
0.16
388
-0.02
 
11.07
2.58
0.21
2.80
2014
11.82
11.80
-0.02
388
-0.02
 
11.05
2.60
0.21
2.81
2015
12.04
11.84
-0.20
386
-0.01
 
11.04
2.61
0.21
2.83
2016
12.29
11.86
-0.43
382
-0.01
 
11.03
2.62
0.21
2.84
2017
12.55
11.88
-0.67
377
-0.01
 
11.02
2.63
0.21
2.85
2018
12.81
11.91
-0.90
370
-0.01
 
11.01
2.64
0.21
2.86
2019
13.06
11.93
-1.13
361
-0.01
 
11.00
2.65
0.21
2.86
2020
13.31
11.96
-1.35
351
-0.01
 
10.99
2.66
0.21
2.87
2021
13.57
11.98
-1.58
340
-0.01
 
10.99
2.66
0.21
2.88
2022
13.79
12.01
-1.79
329
-0.01
 
10.98
2.67
0.21
2.88
2023
13.98
12.03
-1.95
317
0.00
 
10.98
2.67
0.21
2.89
2024
14.15
12.05
-2.10
304
0.00
 
10.97
2.68
0.21
2.89
2025
14.30
12.07
-2.23
291
 
 
10.97
2.68
0.21
2.89
2026
14.43
12.09
-2.33
278
 
 
10.97
2.68
0.21
2.89
2027
14.53
12.12
-2.42
265
 
 
10.97
2.68
0.21
2.89
2028
14.61
12.14
-2.48
251
 
 
10.97
2.68
0.21
2.89
2029
14.66
12.16
-2.51
237
 
 
10.97
2.68
0.21
2.89
2030
14.68
12.17
-2.51
224
 
 
10.97
2.68
0.21
2.89
2031
14.67
12.19
-2.48
211
 
 
10.97
2.68
0.21
2.89
2032
14.63
12.20
-2.43
198
 
 
10.97
2.68
0.21
2.89
2033
14.56
12.21
-2.35
185
 
 
10.97
2.68
0.21
2.89
2034
14.47
12.21
-2.26
173
 
 
10.97
2.68
0.21
2.89
2035
14.36
12.22
-2.14
162
 
 
10.97
2.68
0.21
2.89
2036
14.23
12.22
-2.00
151
 
 
10.97
2.68
0.21
2.89
2037
14.08
12.22
-1.85
141
 
 
10.97
2.68
0.21
2.89
2038
13.91
12.23
-1.68
132
 
 
10.97
2.68
0.21
2.89
2039
13.73
12.23
-1.51
124
 
 
10.97
2.68
0.21
2.89
2040
13.55
12.23
-1.32
116
 
 
10.97
2.68
0.21
2.89
2041
13.36
12.22
-1.13
110
 
 
10.97
2.68
0.21
2.89
2042
13.16
12.22
-0.94
105
 
 
10.97
2.68
0.21
2.89
2043
12.97
12.22
-0.75
101
 
 
10.97
2.68
0.21
2.89
2044
12.78
12.22
-0.56
98
 
 
10.97
2.68
0.21
2.89
2045
12.59
12.22
-0.37
97
 
 
10.97
2.68
0.21
2.89
2046
12.40
12.23
-0.18
97
 
 
10.97
2.68
0.21
2.89
2047
12.22
12.23
0.01
99
 
 
10.97
2.68
0.21
2.89
2048
12.04
12.23
0.19
102
 
 
10.97
2.68
0.21
2.89
2049
11.84
12.23
0.39
107
 
 
10.97
2.68
0.21
2.89
2050
11.66
12.24
0.58
114
 
 
10.97
2.68
0.21
2.89
2051
11.49
12.24
0.75
123
 
 
10.97
2.68
0.21
2.89
2052
11.34
12.25
0.91
133
 
 
10.97
2.68
0.21
2.89
2053
11.19
12.26
1.07
145
 
 
10.97
2.68
0.21
2.89
2054
11.05
12.26
1.22
159
 
 
10.97
2.68
0.21
2.89
2055
10.90
12.26
1.36
175
 
 
10.97
2.68
0.21
2.89
2056
10.76
12.27
1.50
192
 
 
10.97
2.68
0.21
2.89
2057
10.62
12.27
1.65
212
 
 
10.97
2.68
0.21
2.89
2058
10.48
12.27
1.79
234
 
 
10.97
2.68
0.21
2.89
2059
10.35
12.27
1.93
258
 
 
10.97
2.68
0.21
2.89
2060
10.21
12.28
2.06
284
 
 
10.97
2.68
0.21
2.89
2061
10.08
12.28
2.19
313
 
 
10.97
2.68
0.21
2.89
2062
9.96
12.28
2.32
344
 
 
10.97
2.68
0.21
2.89
2063
9.84
12.28
2.44
377
 
 
10.97
2.68
0.21
2.89
2064
9.73
12.28
2.55
412
 
 
10.97
2.68
0.21
2.89
2065
9.62
12.28
2.66
450
 
 
10.97
2.68
0.21
2.89
2066
9.52
12.28
2.76
490
 
 
10.97
2.68
0.21
2.89
2067
9.42
12.28
2.86
532
 
 
10.97
2.68
0.21
2.89
2068
9.33
12.28
2.95
577
 
 
10.97
2.68
0.21
2.89
2069
9.24
12.28
3.04
624
 
 
10.97
2.68
0.21
2.89
2070
9.15
12.28
3.13
673
 
 
10.97
2.68
0.21
2.89
2071
9.06
12.28
3.21
725
 
 
10.97
2.68
0.21
2.89
2072
8.98
12.27
3.29
780
 
 
10.97
2.68
0.21
2.89
2073
8.90
12.27
3.37
837
 
 
10.97
2.68
0.21
2.89
2074
8.82
12.27
3.45
896
 
 
10.97
2.68
0.21
2.89
2075
8.75
12.27
3.52
958
 
 
10.97
2.68
0.21
2.89
2076
8.67
12.26
3.59
1023
 
 
10.97
2.68
0.21
2.89
2077
8.60
12.26
3.66
1091
 
 
10.97
2.68
0.21
2.89
2078
8.52
12.26
3.73
1162
 
 
10.97
2.68
0.21
2.89
 
Summarized
 
 
Cost
Rate
Income
Rate
Actuarial
Balance
Change in
Actuarial
Balance
2003
-2077
12.15
12.79
0.63
2.55
Based on Intermediate Assumptions of the 2003 Trustees Report.

1 Assumes that all workers will invest 4% in IAs up to $1,300 (amount wage-indexed after 2006).
2 Net of Benefit Cost Reductions from IA offsets.
3 Includes specified transfers from the General Fund of the Treasury.
4 Excludes any voluntary worker contributions.
 
Office of the Chief Actuary
Social Security Administration
November 18, 2003

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