Description of Proposed Provision:
C2.3: After the normal retirement age (NRA) reaches 67 for those age 62 in 2022, index the NRA to maintain a constant ratio of expected retirement years (life expectancy at NRA) to potential work years (NRA minus 20). We assume the NRA will increase 1 month every 2 years. Also, increase the earliest eligibility age (EEA) by the same amount as the NRA starting for those age 62 in 2022 so as to maintain a 5 year difference between the two ages. Include a "hardship exemption" with no EEA/NRA change for a worker with 25 years of earnings (with 4 quarters of coverage each), and average indexed monthly earnings (AIME) less than 250 percent of the poverty level (wage-indexed from 2013). The hardship exemption is phased out for those with AIME above 400 percent of the poverty level.

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
201913.7012.95-0.75
273
0.000.000.00
202013.8512.96-0.89
259
0.000.000.00
202114.0212.99-1.03
245
0.000.000.00
202214.2613.02-1.23
230
0.000.000.00
202314.5413.05-1.49
215
-0.000.000.00
202414.8213.08-1.73
199
-0.010.000.01
202515.0913.10-1.98
183
-0.010.000.01
202615.3513.14-2.22
166
-0.020.000.02
202715.5913.15-2.44
148
-0.020.000.02
202815.8213.17-2.65
131
-0.030.000.03
202916.0313.18-2.85
113
-0.030.000.04
203016.2313.20-3.03
95
-0.040.000.04
203116.3913.21-3.18
77
-0.060.000.06
203216.5413.22-3.32
58
-0.070.000.07
203316.6613.23-3.43
39
-0.080.000.08
203416.7613.24-3.52
19
-0.090.000.09
203516.8213.24-3.58
----
-0.110.000.11
203616.8713.25-3.62
----
-0.120.000.12
203716.8913.25-3.64
----
-0.130.000.13
203816.8813.25-3.63
----
-0.150.000.15
203916.8313.25-3.58
----
-0.160.000.16
204016.7913.25-3.54
----
-0.17-0.000.17
204116.7313.25-3.48
----
-0.19-0.000.19
204216.6613.24-3.42
----
-0.20-0.000.20
204316.5913.24-3.35
----
-0.22-0.000.22
204416.5313.24-3.29
----
-0.23-0.000.23
204516.4713.24-3.23
----
-0.25-0.000.25
204616.4113.23-3.18
----
-0.27-0.000.27
204716.3613.23-3.13
----
-0.29-0.000.28
204816.3113.23-3.08
----
-0.31-0.000.30
204916.2613.23-3.03
----
-0.33-0.000.32
205016.2213.23-2.99
----
-0.35-0.000.35
205116.1813.23-2.95
----
-0.38-0.000.37
205216.1613.23-2.93
----
-0.40-0.000.40
205316.1513.23-2.92
----
-0.42-0.000.42
205416.1513.23-2.92
----
-0.44-0.000.44
205516.1613.23-2.92
----
-0.46-0.000.46
205616.1713.24-2.94
----
-0.48-0.010.48
205716.2013.24-2.96
----
-0.50-0.010.49
205816.2213.24-2.98
----
-0.52-0.010.51
205916.2513.24-3.00
----
-0.54-0.010.53
206016.2813.25-3.03
----
-0.55-0.010.55
206116.3113.25-3.06
----
-0.57-0.010.56
206216.3413.25-3.08
----
-0.59-0.010.58
206316.3613.26-3.11
----
-0.61-0.010.60
206416.3913.26-3.13
----
-0.63-0.010.62
206516.4213.26-3.16
----
-0.65-0.010.64
206616.4513.26-3.19
----
-0.67-0.010.66
206716.4813.27-3.21
----
-0.69-0.010.68
206816.5113.27-3.25
----
-0.71-0.010.70
206916.5513.27-3.28
----
-0.72-0.010.71
207016.5813.28-3.31
----
-0.74-0.010.73
207116.6213.28-3.34
----
-0.76-0.010.75
207216.6413.28-3.36
----
-0.77-0.010.76
207316.6613.28-3.38
----
-0.79-0.010.78
207416.6813.29-3.39
----
-0.80-0.010.79
207516.6913.29-3.40
----
-0.82-0.010.81
207616.6813.29-3.39
----
-0.84-0.010.83
207716.6713.29-3.38
----
-0.86-0.010.84
207816.6513.28-3.36
----
-0.88-0.010.86
207916.6213.28-3.33
----
-0.90-0.020.88
208016.5913.28-3.31
----
-0.92-0.010.91
208116.5613.28-3.28
----
-0.95-0.020.93
208216.5413.28-3.26
----
-0.97-0.020.95
208316.5213.28-3.24
----
-0.99-0.020.97
208416.5213.28-3.24
----
-1.01-0.020.99
208516.5313.28-3.25
----
-1.02-0.021.00
208616.5413.28-3.26
----
-1.04-0.021.02
208716.5613.28-3.28
----
-1.06-0.021.04
208816.5813.29-3.30
----
-1.07-0.021.05
208916.6113.29-3.32
----
-1.09-0.021.07
209016.6413.29-3.35
----
-1.11-0.021.09
209116.6713.29-3.37
----
-1.13-0.021.11
209216.7013.30-3.40
----
-1.15-0.021.13


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 16.26% 13.83% -2.43%
2034
-0.41% -0.00% 0.40%

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