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Solvency Provisions 
Provisions Affecting Level of Monthly Benefits 
How we compute retirement benefits ♦ Illustrative examples 
These provisions modify the formula used for calculating the basic Social Security monthly benefit called the Primary Insurance Amount (PIA). We provide a summary list of all options in this category. For each provision listed below, we provide an estimate of the financial effect on the OASDI program over the longrange period (the next 75 years) and for the 75th year. In addition, we provide graphs and detailed single year tables. We base all estimates on the intermediate assumptions described in the 2012 Trustees Report. Choose the type of estimates (summary or detailed) from the list of provisions. We group these provisions as follows:

Number  Table and graph selection 

B1.1 
Price indexing of PIA formula factors beginning with those newly eligible for OASDI benefits
in 2019: Reduce PIA formula factors so that initial benefits grow by inflation rather than
by the SSA average wage index.
Summary measures and graphs (PDF version) 
B1.2 
Progressive price indexing (30th percentile) of PIA formula factors beginning with individuals
newly eligible for OASDI benefits in 2019: Create a new bend point at the 30th percentile of
the AIME distribution of newly retired workers. Maintain currentlaw benefits for earners at the
30th percentile and below. Reduce the 32 and 15 percent formula factors above the 30th 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.
Summary measures and graphs (PDF version) 
B1.3 
Progressive price indexing (40th percentile) of PIA formula factors beginning with individuals
newly eligible for OASDI benefits in 2019: Create a new bend point at the 40th percentile of
the AIME distribution of newly retired workers. Maintain currentlaw benefits for earners at the
40th percentile and below. Reduce the 32 and 15 percent formula 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.
Summary measures and graphs (PDF version) 
B1.4 
Progressive price indexing (50th percentile) of PIA formula factors beginning with individuals
newly eligible for OASDI benefits in 2019: Create a new bend point at the 50th percentile of
the AIME distribution of newly retired workers. Maintain currentlaw benefits for earners at the
50th percentile and below. Reduce the 32 and 15 percent formula factors above the 50th 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.
Summary measures and graphs (PDF version) 
B1.5 
Progressive price indexing (60th percentile) of PIA formula factors beginning with individuals newly
eligible for OASDI benefits in 2019: Create a new bend point at the 60th percentile of the AIME
distribution of newly retired workers. Maintain currentlaw benefits for earners at the 60th percentile
and below. Reduce the 32 and 15 percent formula factors above the 60th 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.
Summary measures and graphs (PDF version) 
B1.6 (2016) 
Progressive price indexing (30th percentile) of PIA formula factors beginning with
individuals newly eligible for OASI benefits in 2016: Create a new bend point at the
30th percentile of the AIME distribution of newly retired workers. Maintain currentlaw
benefits for earners at the 30th percentile and below. Reduce the 32 and 15 percent formula
factors above the 30th 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. Young survivors (children and spouses under normal retirement age with a child in
care) are not affected by this proposal. Disabled workers are: (a) not affected prior to
normal retirement age; and (b) subject to a proportional reduction in benefits, based on the
worker's years of disability, upon conversion to retiredworker beneficiary status.
Summary measures and graphs (PDF version) 
B1.6 (2021) 
Progressive price indexing (30th percentile) of PIA formula factors beginning with
individuals newly eligible for OASI benefits in 2021: Create a new bend point at the
30th percentile of the AIME distribution of newly retired workers. Maintain currentlaw
benefits for earners at the 30th percentile and below. Reduce the 32 and 15 percent formula
factors above the 30th percentile such that the initial benefit for a worker with AIME equal
to the taxable maximum grows by inflation rather than growth in the SSA average wage index.
Disabled workers are: (a) not affected prior to normal retirement age; and (b) subject to a
proportional reduction in benefits, based on the worker's years of disability, upon conversion
to retiredworker beneficiary status.
Summary measures and graphs (PDF version) 
B1.7 
Progressive price indexing (40th percentile) of PIA formula factors for individuals
newly eligible for OASI benefits in 2020 through 2057: Create a new bend point at the
40th percentile of the AIME distribution of newly retired workers. Maintain currentlaw
benefit credit for earners at the 40th percentile and below. Reduce the 32 and 15 formula
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. Disabled workers are: (a) not affected prior to normal retirement age; and (b) subject
to a proportional reduction in benefits, based on the worker's years of disability, upon
conversion to retiredworker beneficiary status. Young survivors (children of deceased workers
and surviving spouses with a child in care) are not affected.
Summary measures and graphs (PDF version) 
B1.8 
Progressive price indexing (50th percentile) of PIA formula factors for individuals
newly eligible for OASI benefits in 2017 through 2056: Create a new bend point at the
50th percentile of the AIME distribution of newly retired workers. Maintain currentlaw
benefit credit for earners at the 50th percentile and below. Reduce the 32 and 15 formula
factors above the 50th 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. Disabled workers are: (a) not affected prior to normal retirement age; and (b) subject
to a proportional reduction in benefits, based on the worker's years of disability, upon
conversion to retiredworker beneficiary status.
Summary measures and graphs (PDF version) 
B2.1 
Beginning with those newly eligible for OASI benefits in 2022, multiply the PIA factors by
the ratio of life expectancy at 67 for 2017 to the life expectancy at age 67 for the 4th
year prior to the year of benefit eligibility. Unisex life expectancies, based on period
life tables as computed by SSA's Office of the Chief Actuary, are used to determine the ratio.
Disabled workers are: (a) not affected prior to normal retirement age; and (b) subject to a
proportional reduction in benefits, based on the worker's years of disability, upon conversion
to retiredworker beneficiary status.
Summary measures and graphs (PDF version) 
B3.1 
Beginning with those newly eligible for OASDI benefits in 2013, multiply the 32 and 15
percent formula factors each year by 0.987. Stop reductions in 2043, when the formula
factors reach 21 percent and 10 percent, respectively.
Summary measures and graphs (PDF version) 
B3.2 
Beginning with those newly eligible for OASI benefits in 2020, multiply the 90 and 32 percent
PIA factors each year by 0.9925 and 0.982, respectively. Stop reductions in 2057. Beginning
with those newly eligible for OASI benefits in 2015, multiply the 15 factor by 0.982. Stop
reduction of the 15 factor in 2052. Child beneficiaries and spouses with a child in care
under the OASI program are not affected by this proposal. Disabled workers are: (a) not
affected prior to normal retirement age; and (b) subject to a proportional reduction in benefits,
based on the worker's years of disability, upon conversion to retiredworker beneficiary status.
Summary measures and graphs (PDF version) 
B3.3 
Beginning with those newly eligible for OASDI benefits in 2013, use a modified primary
insurance amount (PIA) formula. The modified formula: (1) increases the first bend point
to the equivalent of $800 in 2009; (2) places a new bend point 75 percent of the way
between the reset first bend point and the currentlaw second bend point; (3) lowers the
PIA factor between the new bend point and the upper bend point from 32 percent to 20
percent; and (4) lowers the factor above the upper bend point from 15 percent to 10 percent.
Summary measures and graphs (PDF version) 
B3.4 
Beginning with those newly eligible for OASDI benefits in 2016, multiply all PIA formula
factors each year by 0.991. Stop reductions after 2044. Disabled workers are: (a) not
affected prior to normal retirement age; and (b) subject to a proportional reduction in
benefits, based on the worker's years of disability, upon conversion to retiredworker
beneficiary status. Young survivors (children of deceased workers and surviving spouses
with a child in care) are not affected.
Summary measures and graphs (PDF version) 
B3.5 
Progressive indexing (30th percentile) of PIA formula factors beginning with
individuals newly eligible for OASI benefits in 2015, continuing through 2052,
and resuming in 2073: Create a new bend point at the 30th percentile of the AIME
distribution of newly retired workers. Maintain currentlaw benefits for earners at
the 30th percentile and below. Reduce the 32 and 15 percent formula factors above the
30th percentile such that the initial benefit for a worker with AIME equal to the
taxable maximum is reduced by 1.12 percent per year as compared to current law (for
the years that progressive indexing applies). Disabled workers are: (a) not affected
prior to normal retirement age; and (b) subject to a proportional reduction in benefits,
based on the worker's years of disability, upon conversion to retiredworker beneficiary
status.
Summary measures and graphs (PDF version) 
B3.6 
Progressive indexing (30th percentile) of PIA formula factors beginning with
individuals newly eligible for OASI benefits in 2015, continuing through 2064:
Create a new bend point at the 30th percentile of the AIME distribution of newly
retired workers. Maintain currentlaw benefits for earners at the 30th percentile
and below. Reduce the 32 and 15 percent formula factors above the 30th percentile
such that the initial benefit for a worker with AIME equal to the taxable maximum is
reduced by 1.12 percent per year as compared to current law (for the years that
progressive indexing applies). Disabled workers are: (a) not affected prior to normal
retirement age; and (b) subject to a proportional reduction in benefits, based on the
worker's years of disability, upon conversion to retiredworker beneficiary status.
Summary measures and graphs (PDF version) 
B3.7 
Progressive indexing (30th percentile) of PIA formula factors beginning with
individuals newly eligible for OASI benefits in 2015, continuing through 2024,
and then resuming in 2063: Create a new bend point at the 30th percentile of
the AIME distribution of newly retired workers. Maintain currentlaw benefits for
earners at the 30th percentile and below. Reduce the 32 and 15 percent formula
factors above the 30th percentile such that the initial benefit for a worker with
AIME equal to the taxable maximum is reduced by 1.12 percent per year as compared to
current law (for the years that progressive indexing applies). Disabled workers are:
(a) not affected prior to normal retirement age; and (b) subject to a proportional
reduction in benefits, based on the worker's years of disability, upon conversion to
retiredworker beneficiary status.
Summary measures and graphs (PDF version) 
B3.8 
Beginning with those newly eligible for OASDI benefits in 2019, create a new bend
point at the 50th percentile of the AIME distribution of newly retired workers and
gradually reduce all PIA formula factors except for the 90 percent factor. By 2052:
a) the 32 percent PIA formula factor below the new bend point reduces to 30 percent;
b) the 32 percent PIA factor above the new bend point reduces to 10 percent; and c)
the 15 percent factor reduces to 5 percent.
Summary measures and graphs (PDF version) 
B3.9 
Beginning with those newly eligible for OASDI benefits in 2025, gradually reduce the
15 percent PIA formula factor in each year so that it reaches 10 percent for those
newly eligible in 2054 and later.
Summary measures and graphs (PDF version) 
B3.10 
Increase the first PIA bend point above the current law level for workers newly
eligible for benefits in 2019 and later; by 1 percent for 2019, by 2 percent for
2020,..., and by 15 percent for 2033 and later.
Summary measures and graphs (PDF version) 
B4.1 
Increase the number of years used to calculate benefits for retirees and survivors (but
not for disabled workers) from 35 to 38, phased in over the years 20132017.
Summary measures and graphs (PDF version) 
B4.2 
Increase the number of years used to calculate benefits for retirees and survivors
(but not for disabled workers) from 35 to 40, phased in over the years 20132021.
Summary measures and graphs (PDF version) 
B4.3 
For the OASI and DI computation of the PIA, gradually reduce the maximum number of
dropout years from 5 to 0, phased in over the years 20142022.
Summary measures and graphs (PDF version) 
B5.1 
Increase the PIA to a level such that a worker with 30 years of earnings at the
minimum wage level receives an adjusted PIA equal to 120 percent of the Federal
poverty level for an aged individual. This provision takes full effect for all
newly eligible OASDI workers in 2030, and is phased in for new eligibles in 2021
through 2029. The percentage increase in PIA is lowered proportionately for those
with fewer than 30 years of earnings, down to no enhancement for workers with 20
or fewer years of earnings. (Yearofwork requirements are "scaled" for disabled
workers based on their years of potential work from age 22 to benefit eligibility).
The benefit enhancement percentage is reduced proportionately for workers with higher
average indexed monthly earnings (AIME), down to no enhancement for those with AIME
at least twice that of a 35year steady minimum wage earner.
Summary measures and graphs (PDF version) 
B5.2 
Beginning in 2013, reconfigure the special minimum benefit: (a) A year of coverage
is defined as a year in which 4 quarters of coverage are earned. (b) At
implementation, set the PIA for 30 years of coverage equal to 125 percent of the
monthly poverty level (about $1,134 in 2011). For those with under 30 years of
coverage, the PIA per year of coverage over 10 years is $1,134/20 = $56.70. (c)
Index the initial PIA per year of coverage by wage growth for successive cohorts.
Summary measures and graphs (PDF version) 
B5.3 
Beginning in 2013, reconfigure the special minimum benefit: (a) A year of coverage is
defined to be either a year in which 4 quarters of coverage are earned or a child is
in care. Childcare years are granted to parents who have a child under 5, with a limit
of 8 such years. (b) At implementation, set the PIA for 30 years of coverage equal to
125 percent of the monthly poverty level (about $1,134 in 2011). For those with under
30 years of coverage, the PIA per year of coverage over 10 years is $1,134/20 = $56.70.
(c) Index the initial PIA per year of coverage by wage growth for successive cohorts.
Summary measures and graphs (PDF version) 
B5.4 
Beginning in 2019, reconfigure the special minimum benefit: (a) A year of coverage is
defined as a year in which 4 quarters of coverage are earned. (b) At implementation,
set the PIA for 30 years of coverage equal to 125 percent of the monthly poverty level
(about $1,134 in 2011). For those with under 30 years of coverage, the PIA per year of
coverage over 10 years is $1,134/20 = $56.70. (c) From 2011 to the year of implementation,
2019, index the PIA per year of coverage using the chainCPI index. Then, for later years,
index the PIA per year of coverage by wage growth for successive cohorts. (d) Scale work
requirements for disabled workers, based on the number of years of nondisabled potential work.
Summary measures and graphs (PDF version) 
B5.5 
Beginning in 2014, reconfigure the special minimum benefit: (a) A year of coverage is
defined as a year in which either 20 percent of the "old law maximum" is earned or a
child is in care. Childcare years are granted to parents who have a child under 6,
with a limit of 8 such years. (b) At implementation, set the PIA for 30 years of
coverage equal to 133 percent of the poverty level. For those with under 30 years of
coverage, the PIA per year of coverage over 19 is 12.09 percent of poverty. (c) Use
the 2011 Aged Federal poverty level, increased by the SSA average wage index to 2 years
prior to benefit eligibility. (d) Scale work requirements for disabled workers, based
on the number of years of nondisabled potential work.
Summary measures and graphs (PDF version) 
B5.6 
Beginning in 2013, reconfigure the special minimum benefit: (a) A year of coverage is
defined to be either a year in which 4 quarters of coverage are earned or a child is in
care. Childcare years are granted to parents who have a child under 6, with a limit of
5 such years. (b) At implementation, set the PIA for 30 years of coverage equal to 100
percent of the monthly poverty level (about $931 in 2012). For those with under 30 years
of coverage, the PIA per year of coverage over 10 years is $931/20 = $46.55. (c) From
2012 to the year of implementation, 2013, index the PIA per year of coverage using the
CPI index. Then, for later years, index the PIA per year of coverage by wage growth for
successive cohorts. (d) Scale work requirements for disabled workers, based on the number
of years of nondisabled potential work.
Summary measures and graphs (PDF version) 
B5.7 
Beginning for those newly eligible for OASDI benefits in 2015, increase the special minimum
benefit to 100 percent of poverty by making the following changes: (a) The number of years
of work (YOW) is determined as total quarters of coverage divided by 4, ignoring any fraction.
Up to 5 additional years with a child under in 6 may be counted as YOWs. (b) Set the PIA for
30 or more YOWs equal to 100 percent of the monthly HHS poverty level for the year prior to
eligibility. For workers between 11 and 29 YOWs, reduce the special minimum by 3 1/3 percentage
point per YOW so that at 29 YOCs the minimum would be 96 2/3% of poverty,..., down to 11 YOWs
at 36 2/3% of poverty. No minimum for 10 or fewer YOCs.
Summary measures and graphs (PDF version) 
B6.1 
Provide a 5 percent increase to the monthly benefit amount (MBA) of any beneficiary who is
85 or older at the beginning of 2013 or who reaches their 85th birthday after the beginning
of 2013.
Summary measures and graphs (PDF version) 
B6.2 
Provide the same dollar amount increase to the monthly benefit amount (MBA) of any
beneficiary who is 85 or older at the beginning of 2013 or who reaches their 85th
birthday after the beginning of 2013. The dollar amount of increase equals 5 percent
of the average retiredworker MBA in the prior year.
Summary measures and graphs (PDF version) 
B6.3 
Provide an increase in the benefit level of any beneficiary who is 85 or older at
the beginning of 2014 or who reaches their 85th birthday after the beginning of
2014. Increase the beneficiary’s PIA based on an amount equal to the average
retiredworker PIA at the end of 2013, or at the end of the year age 80 if later.
Increase the beneficiary’s PIA by 5 percent of this amount for those older than 85 at
the beginning of 2014 and by 5 percent of this amount at age 85 for others, phased in
at 1 percent per year for ages 8185.
Summary measures and graphs (PDF version) 
B6.4 
Starting in 2013, provide a 5 percent uniform benefit increase 24 years after initial
benefit eligibility. Phase in the benefit increase at 1 percent per year from the 20th
through 24th years after eligibility. For disabled workers, the eligibility age is the
initial entitlement year to the benefit. The benefit increase is equal to 5 percent of
the PIA of a worker assumed to have careeraverage earnings equal to SSA’s average wage
index.
Summary measures and graphs (PDF version) 
B6.5 
Effective in 2015, provide a 5percent uniform PIA increase 20 years after eligibility.
The benefit increase is phased in at 1 percent per year from the 16th through 20th years
after initial eligibility. The full PIA increase is equal to 5 percent of the PIA of a
worker assumed to have careeraverage earnings equal to SSA’s average wage index.
Summary measures and graphs (PDF version) 
B7.1 
Reduce benefits by 3 percent for those newly eligible for benefits in 2013 and later.
Summary measures and graphs (PDF version) 
B7.2 
Reduce benefits by 5 percent for those newly eligible for benefits in 2013 and later.
Summary measures and graphs (PDF version) 
B7.3 
Give credit to parents with a child under 6 for earnings for up to five years. The
earnings credited for a childcare year equal one half of the SSA average wage index
(about $21,505 in 2011). The credits are available for all past years to newly eligible
retiredworker and disabledworker beneficiaries starting in 2013. The 5 years are chosen
to yield the largest increase in AIME.
Summary measures and graphs (PDF version) 
B7.4 
Increase benefits by 2 percent for all beneficiaries as of the beginning of
2013 and for those newly eligible for benefits after the beginning of 2013.
Summary measures and graphs (PDF version) 
B7.5 
Increase benefits by 5 percent for all beneficiaries as of the beginning of
2013 and for those newly eligible for benefits after the beginning of 2013.
Summary measures and graphs (PDF version) 
B7.6 
Increase benefits by 20 percent for all beneficiaries as of the beginning of
2013 and for those newly eligible for benefits after the beginning of 2013.
Summary measures and graphs (PDF version) 
B7.7 
Reduce individual Social Security benefits if modified adjusted gross income,
or MAGI (AGI less taxable Social Security benefits plus nontaxable interest
income) is above $60,000 for single taxpayers or $120,000 for taxpayers filing
jointly. This provision is effective for individuals newly eligible for benefits
in 2020 or later. The percentage reduction increases linearly up to 50 percent for
single/joint filers with MAGI of $180,000/$360,000 or above. Index the MAGI
thresholds for years after 2020, based on changes in the SSA average wage index.
Summary measures and graphs (PDF version) 
Above provisions
Summary measures 
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