Description of Proposed Provision:
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 2019 and those becoming eligible after 2019.

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
201713.4113.03-0.38
298
0.000.000.00
201813.4912.93-0.56
287
0.000.000.00
201913.8112.95-0.86
271
0.120.01-0.11
202013.9712.97-1.00
256
0.120.01-0.11
202114.1313.00-1.14
241
0.120.01-0.11
202214.3713.03-1.35
226
0.120.01-0.11
202314.6613.05-1.61
210
0.120.01-0.11
202414.9513.09-1.86
194
0.120.01-0.12
202515.2213.11-2.11
177
0.120.01-0.12
202615.5013.14-2.36
159
0.130.01-0.12
202715.7513.16-2.59
141
0.130.01-0.12
202815.9813.17-2.81
123
0.130.01-0.12
202916.2013.19-3.01
104
0.130.01-0.12
203016.4013.20-3.20
86
0.130.01-0.13
203116.5813.22-3.37
67
0.130.01-0.13
203216.7413.23-3.52
47
0.140.01-0.13
203316.8813.23-3.64
27
0.140.01-0.13
203416.9813.24-3.74
6
0.140.01-0.13
203517.0613.25-3.82
----
0.140.01-0.13
203617.1313.25-3.87
----
0.140.01-0.13
203717.1613.26-3.90
----
0.140.01-0.13
203817.1613.26-3.90
----
0.140.01-0.13
203917.1313.26-3.88
----
0.140.01-0.13
204017.1013.26-3.84
----
0.140.01-0.13
204117.0513.25-3.80
----
0.140.01-0.13
204217.0013.25-3.75
----
0.140.01-0.13
204316.9413.25-3.69
----
0.130.01-0.13
204416.8913.25-3.65
----
0.130.01-0.13
204516.8513.24-3.61
----
0.130.01-0.13
204616.8113.24-3.57
----
0.130.01-0.13
204716.7813.24-3.54
----
0.130.01-0.12
204816.7513.24-3.51
----
0.130.01-0.12
204916.7213.24-3.48
----
0.130.01-0.12
205016.7013.24-3.46
----
0.130.01-0.12
205116.6813.24-3.45
----
0.130.01-0.12
205216.6913.24-3.45
----
0.130.01-0.12
205316.7013.24-3.46
----
0.130.01-0.12
205416.7213.24-3.47
----
0.130.01-0.12
205516.7513.24-3.50
----
0.130.01-0.12
205616.7813.25-3.54
----
0.130.01-0.12
205716.8213.25-3.57
----
0.130.01-0.12
205816.8713.25-3.61
----
0.130.01-0.12
205916.9113.26-3.65
----
0.130.01-0.12
206016.9613.26-3.70
----
0.130.01-0.12
206117.0013.26-3.74
----
0.130.01-0.12
206217.0513.27-3.78
----
0.130.01-0.12
206317.1013.27-3.83
----
0.130.01-0.12
206417.1513.27-3.87
----
0.130.01-0.12
206517.1913.28-3.92
----
0.130.01-0.12
206617.2513.28-3.97
----
0.130.01-0.12
206717.3013.28-4.02
----
0.130.01-0.12
206817.3513.29-4.06
----
0.130.01-0.12
206917.4013.29-4.11
----
0.130.01-0.12
207017.4613.29-4.16
----
0.130.01-0.12
207117.5013.30-4.21
----
0.130.01-0.12
207217.5413.30-4.25
----
0.130.01-0.12
207317.5813.30-4.28
----
0.130.01-0.12
207417.6113.30-4.31
----
0.130.01-0.12
207517.6413.30-4.33
----
0.130.01-0.12
207617.6513.31-4.34
----
0.130.01-0.12
207717.6613.31-4.35
----
0.130.01-0.12
207817.6613.31-4.35
----
0.130.01-0.12
207917.6513.31-4.34
----
0.130.01-0.12
208017.6413.31-4.34
----
0.130.01-0.12
208117.6413.31-4.33
----
0.130.01-0.12
208217.6413.30-4.33
----
0.130.01-0.12
208317.6413.31-4.34
----
0.130.01-0.12
208417.6613.31-4.35
----
0.130.01-0.12
208517.6813.31-4.38
----
0.130.01-0.12
208617.7113.31-4.40
----
0.130.01-0.12
208717.7513.31-4.44
----
0.130.01-0.12
208817.7913.31-4.48
----
0.130.01-0.12
208917.8313.32-4.52
----
0.130.01-0.12
209017.8813.32-4.56
----
0.130.01-0.12
209117.9313.32-4.61
----
0.130.01-0.13
209217.9813.32-4.65
----
0.130.01-0.13


Summarized Estimates

  Proposal   Change from Current Law
Years Cost
rate
Income
rate
Actuarial
balance

Year of reserve
depletion
1

Cost
rate
Income
rate
Actuarial
balance
2017-2091 16.79% 13.85% -2.95%
2034
0.13% 0.01% -0.12%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2017 Trustees Report.