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Summary of Provisions That Would Change the Social Security Program

Description of Proposed Provisions:
Provisions Affecting Family Member Benefits

Estimates based on the intermediate assumptions of the 2015 Trustees Report


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  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
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.
D1 Beginning in 2016, continue benefits for children of disabled or deceased workers until age 22 if the child is in high school, college or vocational school.
graph | table | pdf-graph | pdf-table | memo (Begich, Murray) | memo (Moore) | memo (National Academy of Social Insurance)
-0.06 -0.06 -2% -1%
D2 The current spouse benefit is based on 50 percent of the PIA of the other spouse. Reduce this percent each year by 1 percentage point beginning with newly eligible spouses in 2016, until the percent reaches 33 in 2032.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance)
0.12 0.19 5% 4%
D3 Allow divorced aged spouses and divorced surviving spouses married 5 to 9 years to get benefits based on the former spouse's account. Divorced aged and surviving spouses would receive 50% of the applicable current-law PIA percentage if married 5 years, 60% of the applicable PIA percentage if married 6 years, ..., 90% of the applicable PIA percentage if married 9 years. This benefit would be available to divorced spouses on the rolls at the beginning of 2017 and those becoming eligible after 2017.
graph | table | pdf-graph | pdf-table | memo (Begich, Murray)
-0.02 -0.01 -1% 0%
D4 Establish an alternative benefit for a surviving spouse. For the surviving spouse, the alternative benefit would equal 75 percent of the sum of the survivor's own worker benefit and the deceased worker's PIA (including any actuarial reductions or delayed retirement credits). If the deceased worker died before becoming entitled, use the age 62 actuarial reduction if deceased before age 62, or the applicable actuarial reduction/DRC for entitlement at the age of death if deceased after 62. The alternative benefit would not exceed the PIA of a hypothetical earner who earns the SSA average wage index (AWI) every year, and who becomes eligible for retired-worker benefits in the same year in which the deceased worker became entitled to worker benefits or died (if before entitlement). The alternative benefit would be paid only if more than the current-law benefit. This benefit would be available to surviving spouses on the rolls at the beginning of 2017 and those becoming eligible after 2017.
graph | table | pdf-graph | pdf-table | memo (Begich, Murray)
-0.11 -0.11 -4% -2%
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Last reviewed or modified September 3, 2015