Description of Proposed Provision:
A6: Starting December 2019, compute the COLA using the Consumer Price Index for the Elderly (CPI-E). We estimate this new computation will increase the annual COLA by about 0.2 percentage point, on average.
Financial Estimates for the OASDI Trust Fund Program
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
|
Expressed as a percentage of current-law taxable payroll |
Trust fund ratio as of January 1 |
Expressed as a percentage of current-law taxable payroll |
|||||||
|
Calendar year |
Cost rate |
Income rate |
Annual balance |
Cost rate |
Income rate |
Annual balance |
|||
| 2017 | 13.41 | 13.03 | -0.38 | 298 | 0.00 | 0.00 | 0.00 | ||
| 2018 | 13.49 | 12.93 | -0.56 | 287 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.70 | 12.95 | -0.75 | 273 | 0.00 | 0.00 | 0.00 | ||
| 2020 | 13.88 | 12.96 | -0.92 | 258 | 0.03 | 0.00 | -0.03 | ||
| 2021 | 14.07 | 12.99 | -1.08 | 244 | 0.05 | 0.00 | -0.05 | ||
| 2022 | 14.34 | 13.03 | -1.31 | 228 | 0.08 | 0.00 | -0.08 | ||
| 2023 | 14.65 | 13.05 | -1.60 | 212 | 0.11 | 0.01 | -0.10 | ||
| 2024 | 14.96 | 13.09 | -1.87 | 195 | 0.14 | 0.01 | -0.13 | ||
| 2025 | 15.26 | 13.11 | -2.15 | 178 | 0.16 | 0.01 | -0.16 | ||
| 2026 | 15.56 | 13.14 | -2.42 | 160 | 0.19 | 0.01 | -0.18 | ||
| 2027 | 15.83 | 13.16 | -2.67 | 141 | 0.22 | 0.01 | -0.21 | ||
| 2028 | 16.09 | 13.18 | -2.91 | 123 | 0.24 | 0.01 | -0.23 | ||
| 2029 | 16.33 | 13.20 | -3.14 | 104 | 0.27 | 0.01 | -0.25 | ||
| 2030 | 16.56 | 13.21 | -3.35 | 84 | 0.29 | 0.02 | -0.27 | ||
| 2031 | 16.76 | 13.22 | -3.54 | 64 | 0.31 | 0.02 | -0.30 | ||
| 2032 | 16.94 | 13.24 | -3.70 | 44 | 0.33 | 0.02 | -0.32 | ||
| 2033 | 17.09 | 13.25 | -3.85 | 23 | 0.35 | 0.02 | -0.34 | ||
| 2034 | 17.22 | 13.25 | -3.97 | 1 | 0.37 | 0.02 | -0.35 | ||
| 2035 | 17.32 | 13.26 | -4.06 | ---- | 0.39 | 0.02 | -0.37 | ||
| 2036 | 17.39 | 13.27 | -4.13 | ---- | 0.41 | 0.02 | -0.38 | ||
| 2037 | 17.44 | 13.27 | -4.17 | ---- | 0.42 | 0.02 | -0.40 | ||
| 2038 | 17.46 | 13.27 | -4.18 | ---- | 0.43 | 0.02 | -0.41 | ||
| 2039 | 17.44 | 13.27 | -4.17 | ---- | 0.44 | 0.02 | -0.42 | ||
| 2040 | 17.42 | 13.27 | -4.14 | ---- | 0.45 | 0.02 | -0.43 | ||
| 2041 | 17.38 | 13.27 | -4.11 | ---- | 0.46 | 0.02 | -0.44 | ||
| 2042 | 17.33 | 13.27 | -4.06 | ---- | 0.47 | 0.03 | -0.45 | ||
| 2043 | 17.28 | 13.27 | -4.02 | ---- | 0.48 | 0.03 | -0.45 | ||
| 2044 | 17.24 | 13.26 | -3.98 | ---- | 0.48 | 0.03 | -0.46 | ||
| 2045 | 17.20 | 13.26 | -3.94 | ---- | 0.49 | 0.03 | -0.46 | ||
| 2046 | 17.17 | 13.26 | -3.91 | ---- | 0.49 | 0.03 | -0.46 | ||
| 2047 | 17.14 | 13.26 | -3.88 | ---- | 0.49 | 0.03 | -0.47 | ||
| 2048 | 17.11 | 13.26 | -3.85 | ---- | 0.49 | 0.03 | -0.47 | ||
| 2049 | 17.08 | 13.26 | -3.82 | ---- | 0.49 | 0.03 | -0.47 | ||
| 2050 | 17.06 | 13.26 | -3.80 | ---- | 0.50 | 0.03 | -0.47 | ||
| 2051 | 17.05 | 13.26 | -3.79 | ---- | 0.50 | 0.03 | -0.47 | ||
| 2052 | 17.05 | 13.26 | -3.79 | ---- | 0.50 | 0.03 | -0.47 | ||
| 2053 | 17.07 | 13.26 | -3.81 | ---- | 0.50 | 0.03 | -0.47 | ||
| 2054 | 17.09 | 13.26 | -3.82 | ---- | 0.50 | 0.03 | -0.47 | ||
| 2055 | 17.12 | 13.26 | -3.85 | ---- | 0.50 | 0.03 | -0.47 | ||
| 2056 | 17.16 | 13.27 | -3.89 | ---- | 0.50 | 0.03 | -0.47 | ||
| 2057 | 17.20 | 13.27 | -3.93 | ---- | 0.50 | 0.03 | -0.47 | ||
| 2058 | 17.24 | 13.27 | -3.97 | ---- | 0.50 | 0.03 | -0.47 | ||
| 2059 | 17.29 | 13.28 | -4.01 | ---- | 0.50 | 0.03 | -0.48 | ||
| 2060 | 17.33 | 13.28 | -4.05 | ---- | 0.50 | 0.03 | -0.48 | ||
| 2061 | 17.38 | 13.28 | -4.10 | ---- | 0.51 | 0.03 | -0.48 | ||
| 2062 | 17.43 | 13.29 | -4.14 | ---- | 0.51 | 0.03 | -0.48 | ||
| 2063 | 17.48 | 13.29 | -4.19 | ---- | 0.51 | 0.03 | -0.48 | ||
| 2064 | 17.53 | 13.29 | -4.24 | ---- | 0.51 | 0.03 | -0.49 | ||
| 2065 | 17.58 | 13.30 | -4.29 | ---- | 0.52 | 0.03 | -0.49 | ||
| 2066 | 17.64 | 13.30 | -4.34 | ---- | 0.52 | 0.03 | -0.49 | ||
| 2067 | 17.69 | 13.30 | -4.39 | ---- | 0.52 | 0.03 | -0.49 | ||
| 2068 | 17.75 | 13.31 | -4.44 | ---- | 0.52 | 0.03 | -0.50 | ||
| 2069 | 17.80 | 13.31 | -4.49 | ---- | 0.53 | 0.03 | -0.50 | ||
| 2070 | 17.86 | 13.31 | -4.54 | ---- | 0.53 | 0.03 | -0.50 | ||
| 2071 | 17.91 | 13.32 | -4.59 | ---- | 0.53 | 0.03 | -0.50 | ||
| 2072 | 17.95 | 13.32 | -4.63 | ---- | 0.54 | 0.03 | -0.51 | ||
| 2073 | 17.99 | 13.32 | -4.67 | ---- | 0.54 | 0.03 | -0.51 | ||
| 2074 | 18.02 | 13.32 | -4.70 | ---- | 0.54 | 0.03 | -0.51 | ||
| 2075 | 18.05 | 13.33 | -4.72 | ---- | 0.54 | 0.03 | -0.51 | ||
| 2076 | 18.07 | 13.33 | -4.74 | ---- | 0.55 | 0.03 | -0.52 | ||
| 2077 | 18.07 | 13.33 | -4.75 | ---- | 0.55 | 0.03 | -0.52 | ||
| 2078 | 18.07 | 13.33 | -4.75 | ---- | 0.55 | 0.03 | -0.52 | ||
| 2079 | 18.07 | 13.33 | -4.74 | ---- | 0.55 | 0.03 | -0.52 | ||
| 2080 | 18.06 | 13.33 | -4.74 | ---- | 0.55 | 0.03 | -0.52 | ||
| 2081 | 18.06 | 13.33 | -4.73 | ---- | 0.56 | 0.03 | -0.53 | ||
| 2082 | 18.06 | 13.33 | -4.73 | ---- | 0.56 | 0.03 | -0.53 | ||
| 2083 | 18.07 | 13.33 | -4.74 | ---- | 0.56 | 0.03 | -0.53 | ||
| 2084 | 18.09 | 13.33 | -4.76 | ---- | 0.56 | 0.03 | -0.53 | ||
| 2085 | 18.11 | 13.33 | -4.78 | ---- | 0.56 | 0.03 | -0.53 | ||
| 2086 | 18.14 | 13.33 | -4.81 | ---- | 0.56 | 0.03 | -0.53 | ||
| 2087 | 18.18 | 13.33 | -4.84 | ---- | 0.56 | 0.03 | -0.53 | ||
| 2088 | 18.22 | 13.34 | -4.88 | ---- | 0.56 | 0.03 | -0.53 | ||
| 2089 | 18.27 | 13.34 | -4.93 | ---- | 0.56 | 0.03 | -0.53 | ||
| 2090 | 18.31 | 13.34 | -4.97 | ---- | 0.57 | 0.03 | -0.54 | ||
| 2091 | 18.36 | 13.35 | -5.02 | ---- | 0.57 | 0.03 | -0.54 | ||
| 2092 | 18.41 | 13.35 | -5.06 | ---- | 0.57 | 0.03 | -0.54 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2017-2091 | 17.08% | 13.86% | -3.22% | 2034 | 0.41% | 0.02% | -0.39% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2017 Trustees Report.