Proposed Provision: B3.12. Use an annualized "mini-PIA" formula beginning with retired workers newly eligible in 2027. For each indexed earnings year, compute an individual AIME and an individual PIA. Sum these individual PIAs for the 40 highest years of indexed earnings and divide that total amount by 37 to get the PIA for this provision. Phase-in over five years, meaning that in 2027, 80 percent of the benefit would be based on the old 35-year average PIA formula and 20 percent on the new mini-PIA formula, shifting by 20 percentage points each year until 100 percent is based on the new mini-PIA formula for those attaining age 62 in 2031. Disabled worker benefits are unchanged under this provision.

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
2037-38-36
2038-59-56
2039-80-76
2040-101-97
2041-122-117
2042-144-138
2043-166-159
2044-188-181
2045-210-202
2046-232-223
2047-255-245
2048-277-266
2049-299-287
2050-322-308
2051-344-330
2052-367-351
2053-389-372
2054-412-394
2055-434-415
2056-457-436
2057-480-458
2058-504-480
2059-527-502
2060-551-524
2061-575-546
2062-599-569
2063-624-592
2064-650-616
2065-676-640
2066-702-664
2067-728-689
2068-755-714
2069-782-739
2070-809-765
2071-837-791
2072-866-818
2073-895-845
2074-925-873
2075-955-902
2076-986-931
2077-1018-961
2078-1051-991
2079-1084-1023
2080-1119-1055
2081-1154-1088
2082-1190-1122
2083-1226-1156
2084-1263-1190
2085-1300-1225
2086-1337-1260
2087-1374-1295
2088-1411-1329
2089-1448-1364
2090-1484-1397
2091-1520-1431
2092-1554-1463
2093-1589-1496
2094-1623-1528
2095-1657-1559
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