Proposed Provision: B1.3. Progressive price indexing (40th percentile) of PIA factors beginning with individuals newly eligible for OASDI benefits in 2027: Create a new bend point at the 40th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 40th percentile and below. Reduce the 32 and 15 percent factors above the 40th percentile such that the initial benefit for a worker with AIME equal to the taxable maximum grows by inflation rather than the growth in the SSA average wage index.

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

Year Current Law Provision
2020261261
2021248248
2022233233
2023217217
2024200200
2025183183
2026165165
2027148148
2028130130
2029112112
20309494
20317676
20325858
20333940
20342021
203512
2036-19-17
2037-38-37
2038-59-57
2039-80-77
2040-101-97
2041-122-118
2042-144-138
2043-166-159
2044-188-180
2045-210-201
2046-232-222
2047-255-242
2048-277-262
2049-299-283
2050-322-303
2051-344-323
2052-367-342
2053-389-362
2054-412-381
2055-434-401
2056-457-420
2057-480-439
2058-504-458
2059-527-476
2060-551-495
2061-575-514
2062-599-533
2063-624-552
2064-650-572
2065-676-591
2066-702-611
2067-728-630
2068-755-650
2069-782-669
2070-809-689
2071-837-709
2072-866-730
2073-895-750
2074-925-771
2075-955-792
2076-986-813
2077-1018-835
2078-1051-857
2079-1084-880
2080-1119-903
2081-1154-927
2082-1190-950
2083-1226-974
2084-1263-998
2085-1300-1021
2086-1337-1045
2087-1374-1068
2088-1411-1090
2089-1448-1112
2090-1484-1133
2091-1520-1153
2092-1554-1173
2093-1589-1192
2094-1623-1210
2095-1657-1228
back