Representative Nick Smith's Proposal to Strengthen Social Security

Table 2--Financial Effects of the Representative Nick Smith Proposal Assuming a 67% PRSA Participation Rate
PRSA proceeds go to estate if worker dies before entitlement Ultimate Real Trust Fund Interest Rate 3.00 Ultimate Real PRSA Rate for Offset 3.70 Assumed PRSA Participation Rate 67%
Year	OASDI			TFR 1-1-yr	Marginal Change in OASDI Contribution Rate				Net OASDI Contribution Rate 2/	PRSA Contribution Rate
Year	Cost Rate 1/	Income Rate	Annual Balance	TFR 1-1-yr	Total	Redirection to PRSAs	Reimbursement for Minimum DI Benefits	Specified General Fund Transfers	Net OASDI Contribution Rate 2/	From Trust Funds	Refundable Credit from General Fund	Average PRSA Contribution Rate
2003	10.90	12.71	1.80	288					12.40
2004	10.83	12.69	1.86	309					12.40
2005	10.99	11.05	0.06	320	-1.662	-1.667	0.005		10.74	1.67	0.23	1.89
2006	10.85	11.16	0.31	326	0.112		0.010	0.102	10.85	1.67	0.23	1.89
2007	10.80	11.58	0.79	331	0.409		0.003	0.405	11.26	1.67	0.23	1.89
2008	10.79	12.05	1.26	341	0.450		-0.002	0.453	11.71	1.67	0.23	1.89
2009	10.81	12.51	1.70	354	0.456		-0.002	0.458	12.17	1.67	0.23	1.89
2010	10.84	12.95	2.11	371	0.428		-0.001	0.429	12.59	1.67	0.23	1.89
2011	10.89	13.51	2.62	393	0.520		0.000	0.520	13.11	1.67	0.23	1.89
2012	10.95	14.18	3.23	418	0.653		0.000	0.653	13.77	1.67	0.23	1.89
2013	11.03	14.10	3.07	448	-0.088		0.000	-0.088	13.68	1.67	0.23	1.89
2014	11.13	11.18	0.05	477	-2.933		-0.001	-2.932	10.75	1.67	0.23	1.89
2015	11.23	11.19	-0.04	479	0.000		0.000		10.75	1.67	0.23	1.89
2016	11.36	11.20	-0.16	480	0.000		0.000		10.75	1.67	0.23	1.89
2017	11.50	11.22	-0.29	479	0.001		0.001		10.75	1.67	0.23	1.89
2018	11.65	11.23	-0.42	478	0.001		0.001		10.75	1.67	0.23	1.89
2019	11.78	11.24	-0.54	475	0.001		0.001		10.75	1.67	0.23	1.89
2020	11.94	11.26	-0.68	471	0.001		0.001		10.75	1.67	0.23	1.89
2021	12.10	11.27	-0.82	466	0.002		0.002		10.75	1.67	0.23	1.89
2022	12.24	11.29	-0.95	461	0.002		0.002		10.75	1.67	0.23	1.89
2023	12.35	11.30	-1.05	456	0.002		0.002		10.76	1.67	0.23	1.89
2024	12.45	11.32	-1.13	451	0.002		0.002		10.76	1.67	0.23	1.89
2025	12.53	11.33	-1.20	446	0.003		0.003		10.76	1.67	0.23	1.89
2026	12.59	11.18	-1.42	441	-0.164	-0.167	0.003		10.60	1.83	0.23	2.06
2027	12.63	11.19	-1.45	436	0.003		0.003		10.60	1.83	0.23	2.06
2028	12.66	11.20	-1.46	430	0.003		0.003		10.60	1.83	0.23	2.06
2029	12.67	11.21	-1.46	424	0.003		0.003		10.61	1.83	0.23	2.06
2030	12.66	11.22	-1.44	420	0.003		0.003		10.61	1.83	0.23	2.06
2031	12.61	11.23	-1.39	416	0.003		0.003		10.61	1.83	0.23	2.06
2032	12.54	11.24	-1.31	414	0.003		0.003		10.62	1.83	0.23	2.06
2033	12.45	11.24	-1.21	413	0.003		0.003		10.62	1.83	0.23	2.06
2034	12.34	11.25	-1.09	413	0.004		0.004		10.62	1.83	0.23	2.06
2035	12.22	11.25	-0.97	414	0.004		0.004		10.63	1.83	0.23	2.06
2036	12.08	11.26	-0.83	417	0.004		0.004		10.63	1.83	0.23	2.06
2037	11.93	11.26	-0.67	422	0.004		0.004		10.63	1.83	0.23	2.06
2038	11.77	11.26	-0.51	429	0.004		0.004		10.64	1.83	0.23	2.06
2039	11.60	10.77	-0.83	438	-0.495	-0.500	0.005		10.14	2.33	0.23	2.56
2040	11.43	10.44	-1.00	444	-0.329	-0.333	0.005		9.82	2.67	0.23	2.89
2041	11.25	10.11	-1.15	449	-0.328	-0.333	0.005		9.49	3.00	0.23	3.23
2042	11.07	9.61	-1.46	454	-0.495	-0.500	0.005		8.99	3.50	0.23	3.73
2043	10.88	9.11	-1.76	456	-0.494	-0.500	0.006		8.50	4.00	0.23	4.23
2044	10.68	8.62	-2.06	455	-0.494	-0.500	0.006		8.00	4.50	0.23	4.73
2045	10.50	8.12	-2.38	451	-0.493	-0.500	0.007		7.51	5.00	0.23	5.23
2046	10.32	7.80	-2.52	444	-0.326	-0.333	0.007		7.18	5.33	0.23	5.56
2047	10.13	7.80	-2.33	435	0.008		0.008		7.19	5.33	0.23	5.56
2048	9.94	7.81	-2.13	428	0.008		0.008		7.20	5.33	0.23	5.56
2049	9.76	7.82	-1.94	421	0.009		0.009		7.21	5.33	0.23	5.56
2050	9.58	7.83	-1.75	416	0.010		0.010		7.22	5.33	0.23	5.56
2051	9.40	7.84	-1.56	413	0.010		0.010		7.23	5.33	0.23	5.56
2052	9.23	7.85	-1.38	411	0.011		0.011		7.24	5.33	0.23	5.56
2053	9.06	7.86	-1.20	410	0.011		0.011		7.25	5.33	0.23	5.56
2054	8.89	7.87	-1.01	412	0.011		0.011		7.26	5.33	0.23	5.56
2055	8.74	7.89	-0.85	414	0.012		0.012		7.27	5.33	0.23	5.56
2056	8.59	7.90	-0.69	419	0.012		0.012		7.29	5.33	0.23	5.56
2057	8.44	7.92	-0.52	425	0.012		0.012		7.30	5.33	0.23	5.56
2058	8.29	7.93	-0.36	434	0.012		0.012		7.31	5.33	0.23	5.56
2059	8.14	7.94	-0.19	445	0.012		0.012		7.32	5.33	0.23	5.56
2060	7.99	7.96	-0.03	458	0.012		0.012		7.33	5.33	0.23	5.56
2061	7.83	7.97	0.14	475	0.012		0.012		7.35	5.33	0.23	5.56
2062	7.68	7.99	0.30	494	0.012		0.012		7.36	5.33	0.23	5.56
2063	7.54	8.00	0.47	516	0.012		0.012		7.37	5.33	0.23	5.56
2064	7.39	8.02	0.63	541	0.013		0.013		7.38	5.33	0.23	5.56
2065	7.27	8.04	0.77	568	0.013		0.013		7.40	5.33	0.23	5.56
2066	7.15	8.05	0.91	597	0.013		0.013		7.41	5.33	0.23	5.56
2067	7.03	8.07	1.04	630	0.012		0.012		7.42	5.33	0.23	5.56
2068	6.92	8.09	1.17	666	0.012		0.012		7.43	5.33	0.23	5.56
2069	6.81	8.11	1.30	705	0.012		0.012		7.44	5.33	0.23	5.56
2070	6.72	8.13	1.41	746	0.011		0.011		7.46	5.33	0.23	5.56
2071	6.63	8.15	1.51	789	0.011		0.011		7.47	5.33	0.23	5.56
2072	6.55	8.16	1.62	836	0.011		0.011		7.48	5.33	0.23	5.56
2073	6.47	8.18	1.72	885	0.011		0.011		7.49	5.33	0.23	5.56
2074	6.39	8.20	1.82	938	0.010		0.010		7.50	5.33	0.23	5.56
2075	6.31	8.22	1.91	994	0.010		0.010		7.51	5.33	0.23	5.56
2076	6.24	8.24	2.01	1053	0.010		0.010		7.52	5.33	0.23	5.56
2077	6.16	8.26	2.10	1116	0.010		0.010		7.53	5.33	0.23	5.56
2078	6.10	8.28	2.19	1182	0.009		0.009		7.54	5.33	0.23	5.56
	Summarized				Change in Actuarial Balance
	Cost Rate	Income Rate	Actuarial Balance		Change in Actuarial Balance
2003- 2077	10.62	11.09	0.47		2.38
Based on Intermediate Assumptions of the 2003 Trustees Report. 1/ Net of Benefit Cost Reductions from PRSA Offsets. 2/ Includes payroll tax contributions plus reimbursement for minimum DI benefits plus specified General Fund transfers (expressed as a percent of taxable payroll)
										Office of the Chief Actuary Social Security Administration September 9, 2003