Proposed Provision: Progressive indexing (30th percentile) of PIA formula factors beginning with individuals newly eligible for OASI benefits in 2016, continuing through 2025, and resuming in 2064: Create a new bend point at the 30th percentile of the AIME distribution of newly retired workers. Maintain current-law 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 retired-worker beneficiary status.

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

Year Present Law Provision
2013330330
2014315315
2015301301
2016286286
2017271271
2018257258
2019244245
2020231231
2021218219
2022204205
2023189191
2024173176
2025158161
2026142146
2027125130
2028108114
20299098
20307181
20315263
20323144
20331125
2034-116
2035-32-14
2036-55-34
2037-78-54
2038-101-74
2039-124-95
2040-148-116
2041-172-137
2042-196-158
2043-220-179
2044-245-200
2045-269-221
2046-294-242
2047-319-264
2048-345-285
2049-371-307
2050-397-329
2051-423-350
2052-449-372
2053-476-394
2054-502-417
2055-530-439
2056-557-462
2057-585-485
2058-613-508
2059-642-532
2060-671-557
2061-701-582
2062-732-607
2063-763-633
2064-794-660
2065-826-686
2066-859-714
2067-892-741
2068-925-770
2069-959-799
2070-993-828
2071-1028-858
2072-1064-890
2073-1101-922
2074-1139-955
2075-1178-989
2076-1217-1024
2077-1258-1060
2078-1299-1096
2079-1340-1133
2080-1382-1171
2081-1424-1208
2082-1466-1246
2083-1508-1284
2084-1550-1322
2085-1592-1361
2086-1635-1400
2087-1678-1440
2088-1722-1480
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