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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 (printerfriendly PDF version) 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 2014 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 factors beginning with those newly eligible for OASDI benefits
in 2021: Reduce PIA 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 factors beginning with individuals
newly eligible for OASDI 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 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 factors beginning with individuals
newly eligible for OASDI benefits in 2021: 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 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 factors beginning with individuals
newly eligible for OASDI benefits in 2021: 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 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 factors beginning with individuals
newly eligible for OASDI benefits in 2021: 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 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 (2018) 
Progressive price indexing (30th percentile) of PIA factors beginning with individuals
newly eligible for OASI benefits in 2018: 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 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. 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) 
B1.6 (2023) 
Progressive price indexing (30th percentile) of PIA factors beginning with individuals
newly eligible for OASI benefits in 2023: 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 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 factors for individuals newly eligible
for OASI benefits in 2022 through 2059: 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 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 factors for individuals newly eligible for
OASI benefits in 2019 through 2058: 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 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 2024, multiply the PIA factors
by the ratio of life expectancy at 67 for 2019 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 2015, multiply the 32 and 15
percent PIA factors each year by 0.987. Stop reductions after 2045, when the 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 2022, multiply the 90 and 32
percent PIA factors each year by 0.9925 and 0.982, respectively. Stop reductions after 2059.
Beginning with those newly eligible for OASI benefits in 2017, multiply the 15 factor by
0.982. Stop reduction of the 15 factor after 2054. 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. Child beneficiaries and spouses with a
child in care under the OASI program are not affected by this proposal.
Summary measures and graphs (PDF version) 
B3.3 
Beginning with those newly eligible for OASDI benefits in 2015, 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 2018, multiply all PIA
factors each year by 0.991. Stop reductions after 2046. 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 factors beginning with individuals
newly eligible for OASI benefits in 2017, continuing through 2054, and resuming in 2075:
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 factors above the 30th percentile such that the initial benefit for a worker with
AIME equal to the taxable maximum is reduced by 1.13 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 factors beginning with individuals
newly eligible for OASI benefits in 2017, continuing through 2066: 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
factors above the 30th percentile such that the initial benefit for a worker with AIME equal to
the taxable maximum is reduced by 1.13 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 factors beginning with individuals
newly eligible for OASI benefits in 2017, continuing through 2026, and resuming in 2065:
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 factors above the 30th percentile such that the initial benefit for a worker
with AIME equal to the taxable maximum is reduced by 1.13 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 2021, create a new bend point at the
50th percentile of the AIME distribution of newly retired workers and gradually reduce all PIA
factors except for the 90 percent factor. By 2054: a) the 32 percent PIA 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 2027, gradually reduce the 15 percent
PIA factor in each year so that it reaches 10 percent for those newly eligible in 2056
and later.
Summary measures and graphs (PDF version) 
B3.10 
Beginning with those newly eligible for OASDI benefits in 2021, gradually increase the first
PIA bend point in each year so that it is 15 percent higher for those newly eligible in 2035
and later.
Summary measures and graphs (PDF version) 
B3.11 
Increase the first PIA factor from 90 percent to 93 percent for
all beneficiaries eligible as of January 2016 and for those newly
eligible for benefits after 2016.
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 20152019.
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 20152023.
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 20162024.
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 2032,
and is phased in for new eligibles in 2023 through 2031. 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 for those newly eligible in 2015, 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 $1,197 in 2013). For those with under 30 years of
coverage, the PIA per year of coverage over 10 years is $1,197/20 =
$59.85. (c) Index the initial PIA per year of coverage by wage growth
for successive cohorts.
Summary measures and graphs (PDF version) 
B5.3 
Beginning for those newly eligible in 2015, 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 $1,197 in 2013). For those with under 30 years of coverage, the PIA per year of
coverage over 10 years is $1,197/20 = $59.85. (c) Index the initial PIA per year of coverage by
wage growth for successive cohorts.
Summary measures and graphs (PDF version) 
B5.4 
Beginning for those newly eligible in 2021, 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 $1,197 in 2013).
For those with under 30 years of coverage, the PIA per year of coverage over 10 years is $1,197/20 = $59.85.
(c) From 2013 to the year of implementation, 2021, 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 for those newly eligible in 2016, 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 Census monthly poverty level (about $1,238 in 2013). For those with under 30 years
of coverage, the PIA per year of coverage over 19 years is $1,238/11 = $112.60. (c) Index the initial 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) 
B5.6 
Beginning for those newly eligible in 2015, 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 $972.50 in 2014). For those with under 30 years of coverage, the PIA per year of
coverage over 10 years is $972.50/20 = $48.60. (c) From 2014 to the year of implementation, 2015,
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 in 2017, increase the special minimum benefit to 100 of poverty
by: (a) The number of years of work (YOWs) is determined as total quarters of coverage divided by 4,
ignoring any fraction. Up to 5 additional years with a child under 6. (b) Set the PIA for 30+ 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 points per YOW so that at 29
YOWs 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 YOWs.
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 2015 or who reaches their 85th birthday after the beginning of 2015.
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 2015 or who reaches their 85th birthday after the beginning
of 2015. 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 2016 or who reaches their 85th birthday
after the beginning of 2016. Increase the beneficiary's PIA based on
an amount equal to the average retiredworker PIA at the end of 2015,
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 2016 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 2015, 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 
Starting in 2017, provide a 5 percent uniform PIA increase 20 years after benefit eligibility.
Phase in the PIA increase at 1 percent per year from the 16th through 20th years after eligibility.
The full PIA increase is equal to 5 percent of the PIA of a worker assumed to have careeraverage
earnings equal to the SSA average wage index.
Summary measures and graphs (PDF version) 
B6.6 
Starting in 2021, provide a uniform PIA increase 23 years after benefit eligibility. Phase in
the PIA increase at 0.5 percent per year from the 14th through the 23rd years after eligibility.
The full PIA increase is equal to 5 percent of the average retired worker PIA in December of the
12th year after benefit eligibility. A similar additional PIA increase applies 42 years after
benefit eligibility (phased in from the 33rd through the 42nd years after eligibility). Auxiliary
beneficiaries receive benefit enhancement based on PIA of governing worker.
Summary measures and graphs (PDF version) 
B7.1 
Reduce benefits by 3 percent for those newly eligible for benefits in 2015 and later.
Summary measures and graphs (PDF version) 
B7.2 
Reduce benefits by 5 percent for those newly eligible for benefits in 2015 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 $22,564 in
2013). The credits are available for all past years to newly eligible retiredworker and
disabledworker beneficiaries starting in 2015. 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 2015 and for
those newly eligible for benefits after the beginning of 2015.
Summary measures and graphs (PDF version) 
B7.5 
Increase benefits by 5 percent for all beneficiaries as of the beginning of 2015 and for those
newly eligible for benefits after the beginning of 2015.
Summary measures and graphs (PDF version) 
B7.6 
Increase benefits by 20 percent for all beneficiaries as of the beginning of 2015 and for those
newly eligible for benefits after the beginning of 2015.
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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