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| Actuarial Publications |
Summary of Provisions That Would Change the Social Security Program |
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Description of Proposed Provisions:
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Estimates based on the intermediate assumptions of the 2015 Trustees Report
| Printer-friendly Version (PDF) |
| Change from present law [percent of payroll] |
Shortfall eliminated | |||||
|---|---|---|---|---|---|---|
| Long-range actuarial balance |
Annual balance in 75th year |
Long-range actuarial balance |
Annual balance in 75th year |
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| Present law shortfall in long-range actuarial balance is 2.68 percent of payroll and in annual balance for the 75th year is 4.65 percent of payroll. | ||||||
| B1.1 |
Price indexing of PIA factors beginning with those newly eligible for OASDI benefits
in 2022: Reduce factors so that initial benefits grow by inflation rather than by
the SSA average wage index.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
2.64 | 7.77 | 98% | 167% | |
| B1.2 |
Progressive price indexing (30th percentile) of PIA factors beginning with individuals
newly eligible for OASDI benefits in 2022: 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 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.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
1.45 | 4.29 | 54% | 92% | |
| B1.3 |
Progressive price indexing (40th percentile) of PIA factors beginning with individuals
newly eligible for OASDI benefits in 2022: Create a new bend point at the 40th percentile
of the AIME distribution of newly retired workers. Maintain current-law 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.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
1.22 | 3.59 | 45% | 77% | |
| B1.4 |
Progressive price indexing (50th percentile) of PIA factors beginning with individuals
newly eligible for OASDI benefits in 2022: Create a new bend point at the 50th percentile
of the AIME distribution of newly retired workers. Maintain current-law 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.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
0.97 | 2.70 | 36% | 58% | |
| B1.5 |
Progressive price indexing (60th percentile) of PIA factors beginning with individuals
newly eligible for OASDI benefits in 2022: Create a new bend point at the 60th percentile
of the AIME distribution of newly retired workers. Maintain current-law 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.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
0.69 | 1.71 | 26% | 37% | |
| B1.6 (2019) |
Progressive price indexing (30th percentile) of PIA factors beginning with individuals
newly eligible for OASI benefits in 2019: 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 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 retired-worker beneficiary status.
Young survivors (children of deceased workers and surviving spouses with a child in care) are not
affected.
graph | table | pdf-graph | pdf-table | memo (Bennett) |
1.49 | 4.01 | 55% | 86% | |
| B1.6 (2024) |
Progressive price indexing (30th percentile) of PIA factors beginning with individuals
newly eligible for OASI benefits in 2024: 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 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 retired-worker beneficiary status.
graph | table | pdf-graph | pdf-table | memo (Ryan 2010) |
1.13 | 3.63 | 42% | 78% | |
| B1.7 |
Progressive price indexing (40th percentile) of PIA factors for individuals newly eligible
for OASI benefits in 2023 through 2060: Create a new bend point at the 40th percentile of
the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 4
0th 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 retired-worker beneficiary status. Young survivors
(children of deceased workers and surviving spouses with a child in care) are not affected.
graph | table | pdf-graph | pdf-table | memo (Graham, Paul, Lee) |
0.95 | 2.55 | 35% | 55% | |
| B1.8 |
Progressive price indexing (50th percentile) of PIA factors for individuals newly eligible
for OASI benefits in 2020 through 2059: Create a new bend point at the 50th percentile of
the AIME distribution of newly retired workers. Maintain current-law 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 retired-worker beneficiary status.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) |
0.95 | 2.30 | 35% | 49% | |
| B2.1 |
Beginning with those newly eligible for OASI benefits in 2025, multiply the PIA factors by the
ratio of life expectancy at 67 for 2020 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 retired-worker
beneficiary status.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center) | memo (Bennett) |
0.51 | 1.69 | 19% | 36% | |
| B3.1 |
Beginning with those newly eligible for OASDI benefits in 2016, multiply the 32 and 15
percent PIA factors each year by 0.987. Stop reductions after 2046, when the factors
reach 21 percent and 10 percent, respectively.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
1.51 | 2.99 | 56% | 64% | |
| B3.2 |
Beginning with those newly eligible for OASI benefits in 2023, multiply the 90 and 32
percent PIA factors each year by 0.9925 and 0.982, respectively. Stop reductions after
2060. Beginning with those newly eligible for OASI benefits in 2018, multiply the 15
factor by 0.982. Stop reduction of the 15 factor after 2055. 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. Child beneficiaries and spouses with a child in care under the OASI
program are not affected by this proposal.
graph | table | pdf-graph | pdf-table | memo (Liebman, MacGuineas, Samwick) |
1.98 | 5.31 | 74% | 114% | |
| B3.3 |
Beginning with those newly eligible for OASDI benefits in 2016, 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 current-law 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.
graph | table | pdf-graph | pdf-table | memo (AARP) |
0.21 | 0.29 | 8% | 6% | |
| B3.4 |
Beginning with those newly eligible for OASDI benefits in 2019, multiply all PIA factors each
year by 0.991. Stop reductions after 2047. 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. Young
survivors (children of deceased workers and surviving spouses with a child in care) are not
affected.
graph | table | pdf-graph | pdf-table | memo (Warshawsky) |
1.47 | 3.17 | 55% | 68% | |
| B3.5 |
Progressive indexing (30th percentile) of PIA factors beginning with individuals newly eligible
for OASI benefits in 2018, continuing through 2055, and resuming in 2076: 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 factors above
the 30th percentile such that the initial benefit for a worker with AIME equal to the taxable maximum
is reduced by 1.17 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.
graph | table | pdf-graph | pdf-table | memo (NRC/NAPA) |
1.26 | 3.06 | 47% | 66% | |
| B3.6 |
Progressive indexing (30th percentile) of PIA factors beginning with individuals newly eligible
for OASI benefits in 2018, continuing through 2067: 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 factors above the 30th percentile such that
the initial benefit for a worker with AIME equal to the taxable maximum is reduced by 1.17 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.
graph | table | pdf-graph | pdf-table | memo (NRC/NAPA) |
1.34 | 3.52 | 50% | 76% | |
| B3.7 |
Progressive indexing (30th percentile) of PIA factors beginning with individuals newly eligible
for OASI benefits in 2018, continuing through 2027, and resuming in 2066: 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 factors above the 30th
percentile such that the initial benefit for a worker with AIME equal to the taxable maximum is reduced
by 1.17 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.
graph | table | pdf-graph | pdf-table | memo (NRC/NAPA) |
0.59 | 1.58 | 22% | 34% | |
| B3.8 |
Beginning with those newly eligible for OASDI benefits in 2022, 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 2055: 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 PIA factor reduces to 5 percent.
graph | table | pdf-graph | pdf-table | memo (Fiscal Commission) |
0.89 | 2.29 | 33% | 49% | |
| B3.9 |
Beginning with those newly eligible for OASDI benefits in 2028, gradually reduce the 15
percent PIA factor in each year so that it reaches 10 percent for those newly eligible
in 2057 and later.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center) |
0.07 | 0.22 | 3% | 5% | |
| B3.10 |
Beginning with those newly eligible for OASDI benefits in 2022, gradually increase the first
PIA bend point in each year so that it is 15 percent higher for those newly eligible in 2036
and later.
graph | table | pdf-graph | pdf-table | memo (Schatz) | memo (Sanders 2015) | memo (Harkin 2013) | memo (Harkin 2012) |
-0.36 | -0.71 | -14% | -15% | |
| B3.11 |
Increase the first PIA factor from 90 percent to 93 percent for all beneficiaries eligible as
of January 2017 and for those newly eligible for benefits after 2017.
graph | table | pdf-graph | pdf-table | memo (Larson 2015) | memo (Larson 2014) |
-0.24 | -0.27 | -9% | -6% | |
| 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 2016-2020.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
0.28 | 0.40 | 11% | 9% | |
| 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 2016-2024.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) | memo (Social Security Advisory Board) |
0.45 | 0.68 | 17% | 15% | |
| B4.3 |
For the OASI and DI computation of the PIA, gradually reduce the maximum number of drop-out
years from 5 to 0, phased in over the years 2017-2025.
graph | table | pdf-graph | pdf-table | memo (Warshawsky) |
0.61 | 0.96 | 23% | 21% | |
| 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 2033, and is phased in for new eligibles in 2024 through 2032. 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. (Year-of-work 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 35-year steady minimum wage earner.
graph | table | pdf-graph | pdf-table | memo (Ryan 2010) |
-0.02 | 0.00 | -1% | 0% | |
| B5.2 |
Beginning for those newly eligible in 2016, 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 $1,216 in 2014). For those with under 30 years of coverage,
the PIA per year of coverage over 10 years is $1,216/20 = $60.80. (c) Index the initial
PIA per year of coverage by wage growth for successive cohorts.
graph | table | pdf-graph | pdf-table | memo (Sanders 2015) | memo (Larson 2015) | memo (Larson 2014) | memo (National Academy of Social Insurance) |
-0.18 | -0.27 | -7% | -6% | |
| B5.3 |
Beginning for those newly eligible in 2016, 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 $1,216
in 2014). For those with under 30 years of coverage, the PIA per year of coverage over
10 years is $1,216/20 = $60.80. (c) Index the initial PIA per year of coverage by wage
growth for successive cohorts.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
-0.25 | -0.37 | -10% | -8% | |
| B5.4 |
Beginning for those newly eligible in 2022, 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 $1,216 in 2014). For those with under 30 years of coverage,
the PIA per year of coverage over 10 years is $1,216/20 = $60.80. (c) From 2014 to the
year of implementation, 2022, index the PIA per year of coverage using the chain-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 non-disabled potential work.
graph | table | pdf-graph | pdf-table | memo (Fiscal Commission) |
-0.13 | -0.23 | -5% | -5% | |
| B5.5 |
Beginning for those newly eligible in 2017, 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 $1,258 in 2014). For those with under 30 years of coverage, the PIA per
year of coverage over 19 years is $1,258/11 = $114.40. (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 non-disabled potential work.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center) |
-0.08 | -0.13 | -3% | -3% | |
| B5.6 |
Beginning for those newly eligible in 2016, 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 $980.80
in 2015). For those with under 30 years of coverage, the PIA per year of coverage over
10 years is $980.80/20 = $49.04. (c) From 2015 to the year of implementation, 2016,
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 non-disabled potential
work.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) |
-0.11 | -0.17 | -4% | -4% | |
| B5.7 |
Beginning for those newly eligible in 2018, 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.
graph | table | pdf-graph | pdf-table | memo (Moore) |
-0.02 | -0.00 | -1% | 0% | |
| 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 2016 or who reaches their 85th birthday after the beginning of 2016.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) | memo (National Academy of Social Insurance) |
-0.11 | -0.16 | -4% | -3% | |
| 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 2016 or who reaches their 85th birthday after the beginning of
2016. The dollar amount of increase equals 5 percent of the average retired-worker MBA in the prior
year.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
-0.11 | -0.16 | -4% | -3% | |
| B6.3 |
Provide an increase in the benefit level of any beneficiary who is 85 or older at the beginning
of 2017 or who reaches their 85th birthday after the beginning of 2017. Increase the beneficiary's
PIA based on an amount equal to the average retired-worker PIA at the end of 2016, 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 2017 and by 5 percent of this amount at age 85 for others,
phased in at 1 percent per year for ages 81-85.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center) |
-0.13 | -0.19 | -5% | -4% | |
| B6.4 |
Starting in 2016, 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 career-average earnings equal to SSA's average wage index.
graph | table | pdf-graph | pdf-table | memo (Fiscal Commission) |
-0.15 | -0.21 | -6% | -5% | |
| B6.5 |
Starting in 2018, 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 career-average earnings equal to the SSA average wage index.
graph | table | pdf-graph | pdf-table | memo (Moore) |
-0.23 | -0.31 | -9% | -7% | |
| B6.6 |
Starting in 2022, 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.
graph | table | pdf-graph | pdf-table | memo (FY 2014 Budget) |
-0.21 | -0.31 | -8% | -7% | |
| B7.1 |
Reduce benefits by 3 percent for those newly eligible for benefits in 2016 and later.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
0.37 | 0.51 | 14% | 11% | |
| B7.2 |
Reduce benefits by 5 percent for those newly eligible for benefits in 2016 and later.
graph | table | pdf-graph | pdf-table | memo (Social Security Advisory Board) |
0.61 | 0.85 | 23% | 18% | |
| 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 $23,145 in 2014). The credits are available for all past years to newly eligible
retired-worker and disabled-worker beneficiaries starting in 2016. The 5 years are
chosen to yield the largest increase in AIME.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
-0.23 | -0.32 | -8% | -7% | |
| B7.4 |
Increase benefits by 2 percent for all beneficiaries as of the beginning of 2016 and
for those newly eligible for benefits after the beginning of 2016.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
-0.31 | -0.34 | -12% | -7% | |
| B7.5 |
Increase benefits by 5 percent for all beneficiaries as of the beginning of 2016
and for those newly eligible for benefits after the beginning of 2016.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
-0.77 | -0.85 | -29% | -18% | |
| B7.6 |
Increase benefits by 20 percent for all beneficiaries as of the beginning of 2016
and for those newly eligible for benefits after the beginning of 2016.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
-3.08 | -3.40 | -115% | -73% | |
| 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.
graph | table | pdf-graph | pdf-table | memo (Chaffetz) |
0.27 | 0.38 | 10% | 8% | |
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