Proposed Provision: Progressive price indexing of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2014. Create new bend point at the 30th percentile of earners. Maintain current-law benefits for earners at the 30th 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. Disability benefits are not affected by the proposal. Disabled worker beneficiaries, upon attaining normal retirement age, would be subject to a proportional reduction in benefits based on the worker's years of disability. In addition, the reduction to the upper 2 formula factors is suspended for any year in which sustainable solvency over the next 75 years is expected. With this provision taken alone, suspension is not expected within the next 75 years.

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

Year Present Law Provision
2010355355
2011353353
2012350350
2013346346
2014341341
2015335336
2016330331
2017324326
2018317320
2019309313
2020299305
2021289296
2022277287
2023264276
2024251265
2025237254
2026221242
2027205229
2028189216
2029171202
2030154189
2031136175
2032117161
203398147
203479133
203559119
203639105
20371992
2038-178
2039-2165
2040-4252
2041-6340
2042-8428
2043-10516
2044-1264
2045-147-7
2046-168-17
2047-189-28
2048-211-38
2049-233-48
2050-255-57
2051-277-67
2052-299-75
2053-321-84
2054-344-92
2055-366-101
2056-389-109
2057-412-117
2058-436-124
2059-460-132
2060-485-139
2061-509-147
2062-534-154
2063-560-161
2064-586-168
2065-612-175
2066-638-181
2067-665-188
2068-692-194
2069-720-201
2070-748-207
2071-776-213
2072-805-219
2073-834-226
2074-864-232
2075-894-238
2076-925-244
2077-957-250
2078-989-256
2079-1021-262
2080-1054-268
2081-1087-275
2082-1121-281
2083-1156-287
2084-1191-293
2085-1227-299
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