Proposed Provision: Progressive price indexing of PIA formula factors beginning with individuals newly eligible for OASDI benefits in 2012. Create new bend point at the 40th percentile of earners. Maintain current-law benefits for earners at the 40th percentile and below and reduce upper 2 formula factors (32% and 15%) such that maximum worker benefit grows by inflation rather than the growth in average wages.

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

Year Present Law Provision
2005320320
2006337337
2007355355
2008370370
2009383383
2010394394
2011404404
2012410410
2013415415
2014417418
2015418419
2016416418
2017412415
2018407411
2019401406
2020393400
2021383393
2022372384
2023360374
2024346364
2025332352
2026316339
2027299326
2028282312
2029264298
2030245284
2031225269
2032205254
2033185238
2034164223
2035143207
2036121192
203799176
203877160
203954145
204031129
20417114
2042-1798
2043-4182
2044-6667
2045-9151
2046-11736
2047-14320
2048-1695
2049-196-11
2050-223-27
2051-251-43
2052-279-58
2053-308-74
2054-337-90
2055-367-106
2056-397-123
2057-428-139
2058-460-156
2059-492-173
2060-525-190
2061-558-207
2062-592-224
2063-626-242
2064-661-260
2065-697-278
2066-734-296
2067-772-315
2068-810-334
2069-849-353
2070-889-372
2071-930-392
2072-971-412
2073-1014-432
2074-1057-453
2075-1101-474
2076-1146-495
2077-1192-517
2078-1238-538
2079-1286-560
2080-1334-582
2081-1383-605
2082-1433-627
2083-1484-650
2084-1536-673
2085-1589-697
back