Description of Proposed Provision:
A7: Starting December 2018, reduce the annual COLA by 1 percentage point, but not to less than zero. In cases where the unreduced COLA is less than 1 percentage point, do not carry over the unused reduction into future years.
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 | 13.58 | 12.94 | -0.64 | 275 | -0.12 | -0.01 | 0.12 | ||
| 2020 | 13.61 | 12.95 | -0.66 | 264 | -0.24 | -0.01 | 0.23 | ||
| 2021 | 13.65 | 12.97 | -0.68 | 254 | -0.37 | -0.02 | 0.35 | ||
| 2022 | 13.77 | 13.00 | -0.77 | 243 | -0.49 | -0.02 | 0.46 | ||
| 2023 | 13.94 | 13.02 | -0.92 | 232 | -0.61 | -0.03 | 0.58 | ||
| 2024 | 14.10 | 13.05 | -1.05 | 221 | -0.73 | -0.04 | 0.69 | ||
| 2025 | 14.25 | 13.06 | -1.19 | 210 | -0.84 | -0.04 | 0.80 | ||
| 2026 | 14.41 | 13.09 | -1.33 | 198 | -0.96 | -0.05 | 0.91 | ||
| 2027 | 14.55 | 13.10 | -1.45 | 186 | -1.07 | -0.05 | 1.01 | ||
| 2028 | 14.68 | 13.11 | -1.57 | 174 | -1.17 | -0.06 | 1.11 | ||
| 2029 | 14.80 | 13.12 | -1.68 | 163 | -1.27 | -0.07 | 1.20 | ||
| 2030 | 14.90 | 13.12 | -1.78 | 151 | -1.36 | -0.07 | 1.29 | ||
| 2031 | 14.99 | 13.13 | -1.86 | 140 | -1.45 | -0.08 | 1.38 | ||
| 2032 | 15.07 | 13.14 | -1.93 | 129 | -1.54 | -0.08 | 1.46 | ||
| 2033 | 15.12 | 13.14 | -1.98 | 117 | -1.62 | -0.08 | 1.53 | ||
| 2034 | 15.16 | 13.15 | -2.01 | 106 | -1.69 | -0.09 | 1.60 | ||
| 2035 | 15.17 | 13.15 | -2.03 | 94 | -1.75 | -0.09 | 1.66 | ||
| 2036 | 15.17 | 13.15 | -2.03 | 82 | -1.81 | -0.10 | 1.72 | ||
| 2037 | 15.15 | 13.15 | -2.01 | 69 | -1.87 | -0.10 | 1.77 | ||
| 2038 | 15.11 | 13.15 | -1.96 | 57 | -1.91 | -0.10 | 1.81 | ||
| 2039 | 15.05 | 13.14 | -1.90 | 45 | -1.95 | -0.10 | 1.85 | ||
| 2040 | 14.98 | 13.14 | -1.83 | 34 | -1.99 | -0.11 | 1.88 | ||
| 2041 | 14.90 | 13.14 | -1.76 | 22 | -2.01 | -0.11 | 1.91 | ||
| 2042 | 14.82 | 13.13 | -1.69 | 11 | -2.04 | -0.11 | 1.93 | ||
| 2043 | 14.75 | 13.13 | -1.62 | 0 | -2.06 | -0.11 | 1.95 | ||
| 2044 | 14.69 | 13.13 | -1.56 | ---- | -2.07 | -0.11 | 1.96 | ||
| 2045 | 14.64 | 13.13 | -1.51 | ---- | -2.08 | -0.11 | 1.97 | ||
| 2046 | 14.59 | 13.12 | -1.47 | ---- | -2.09 | -0.11 | 1.98 | ||
| 2047 | 14.55 | 13.12 | -1.43 | ---- | -2.10 | -0.11 | 1.98 | ||
| 2048 | 14.52 | 13.12 | -1.40 | ---- | -2.10 | -0.11 | 1.99 | ||
| 2049 | 14.49 | 13.12 | -1.37 | ---- | -2.10 | -0.11 | 1.99 | ||
| 2050 | 14.47 | 13.12 | -1.35 | ---- | -2.10 | -0.11 | 1.99 | ||
| 2051 | 14.46 | 13.12 | -1.34 | ---- | -2.10 | -0.11 | 1.99 | ||
| 2052 | 14.46 | 13.12 | -1.34 | ---- | -2.10 | -0.11 | 1.99 | ||
| 2053 | 14.47 | 13.12 | -1.35 | ---- | -2.10 | -0.11 | 1.99 | ||
| 2054 | 14.49 | 13.12 | -1.37 | ---- | -2.10 | -0.11 | 1.99 | ||
| 2055 | 14.52 | 13.12 | -1.39 | ---- | -2.10 | -0.11 | 1.99 | ||
| 2056 | 14.55 | 13.13 | -1.42 | ---- | -2.11 | -0.11 | 1.99 | ||
| 2057 | 14.59 | 13.13 | -1.46 | ---- | -2.11 | -0.11 | 2.00 | ||
| 2058 | 14.63 | 13.13 | -1.49 | ---- | -2.11 | -0.11 | 2.00 | ||
| 2059 | 14.66 | 13.13 | -1.53 | ---- | -2.12 | -0.11 | 2.01 | ||
| 2060 | 14.70 | 13.14 | -1.56 | ---- | -2.13 | -0.12 | 2.01 | ||
| 2061 | 14.74 | 13.14 | -1.60 | ---- | -2.14 | -0.12 | 2.02 | ||
| 2062 | 14.78 | 13.14 | -1.63 | ---- | -2.14 | -0.12 | 2.03 | ||
| 2063 | 14.82 | 13.15 | -1.67 | ---- | -2.15 | -0.12 | 2.04 | ||
| 2064 | 14.85 | 13.15 | -1.70 | ---- | -2.16 | -0.12 | 2.05 | ||
| 2065 | 14.89 | 13.15 | -1.74 | ---- | -2.18 | -0.12 | 2.06 | ||
| 2066 | 14.93 | 13.15 | -1.78 | ---- | -2.19 | -0.12 | 2.07 | ||
| 2067 | 14.97 | 13.16 | -1.82 | ---- | -2.20 | -0.12 | 2.08 | ||
| 2068 | 15.01 | 13.16 | -1.85 | ---- | -2.21 | -0.12 | 2.09 | ||
| 2069 | 15.05 | 13.16 | -1.89 | ---- | -2.22 | -0.12 | 2.10 | ||
| 2070 | 15.09 | 13.16 | -1.93 | ---- | -2.23 | -0.12 | 2.11 | ||
| 2071 | 15.13 | 13.17 | -1.96 | ---- | -2.25 | -0.12 | 2.12 | ||
| 2072 | 15.16 | 13.17 | -1.99 | ---- | -2.26 | -0.12 | 2.13 | ||
| 2073 | 15.18 | 13.17 | -2.01 | ---- | -2.27 | -0.12 | 2.14 | ||
| 2074 | 15.20 | 13.17 | -2.03 | ---- | -2.28 | -0.12 | 2.15 | ||
| 2075 | 15.22 | 13.17 | -2.04 | ---- | -2.29 | -0.12 | 2.16 | ||
| 2076 | 15.22 | 13.17 | -2.05 | ---- | -2.30 | -0.13 | 2.17 | ||
| 2077 | 15.22 | 13.17 | -2.05 | ---- | -2.31 | -0.13 | 2.18 | ||
| 2078 | 15.21 | 13.17 | -2.04 | ---- | -2.31 | -0.13 | 2.19 | ||
| 2079 | 15.20 | 13.17 | -2.03 | ---- | -2.32 | -0.13 | 2.19 | ||
| 2080 | 15.19 | 13.17 | -2.02 | ---- | -2.32 | -0.13 | 2.20 | ||
| 2081 | 15.18 | 13.17 | -2.01 | ---- | -2.33 | -0.13 | 2.20 | ||
| 2082 | 15.17 | 13.17 | -2.00 | ---- | -2.33 | -0.13 | 2.21 | ||
| 2083 | 15.18 | 13.17 | -2.01 | ---- | -2.34 | -0.13 | 2.21 | ||
| 2084 | 15.19 | 13.17 | -2.02 | ---- | -2.34 | -0.13 | 2.21 | ||
| 2085 | 15.21 | 13.17 | -2.03 | ---- | -2.35 | -0.13 | 2.22 | ||
| 2086 | 15.23 | 13.17 | -2.06 | ---- | -2.35 | -0.13 | 2.22 | ||
| 2087 | 15.26 | 13.17 | -2.09 | ---- | -2.35 | -0.13 | 2.23 | ||
| 2088 | 15.30 | 13.18 | -2.12 | ---- | -2.36 | -0.13 | 2.23 | ||
| 2089 | 15.34 | 13.18 | -2.16 | ---- | -2.36 | -0.13 | 2.24 | ||
| 2090 | 15.38 | 13.18 | -2.20 | ---- | -2.37 | -0.13 | 2.24 | ||
| 2091 | 15.42 | 13.18 | -2.23 | ---- | -2.38 | -0.13 | 2.25 | ||
| 2092 | 15.46 | 13.19 | -2.27 | ---- | -2.38 | -0.13 | 2.25 | ||
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 | 14.87% | 13.74% | -1.13% | 2043 | -1.79% | -0.10% | 1.70% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
|||||||||
Based on Intermediate Assumptions of the 2017 Trustees Report.