Description of Proposed Provision:
B5.6: Beginning for those newly eligible in 2018, reconfigure the special minimum benefit: (a) A year of coverage is defined to be either a year in which 4 quarters of coverage are earned or a child is in care. Childcare years are granted to parents who have a child under 6, with a limit of 5 such years. (b) At implementation, set the PIA for 30 years of coverage equal to 100 percent of the monthly poverty level (about $1,005 in 2017). For those with under 30 years of coverage, the PIA per year of coverage over 10 years is $1,005/20 = $50.25. (c) From 2017 to the year of implementation, 2018, index the PIA per year of coverage using the CPI index. Then, for later years, index the PIA per year of coverage by wage growth for successive cohorts. (d) Scale work requirements for disabled workers, based on the number of years of non-disabled potential work.

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
0.000.00-0.00
201913.7012.95-0.76
273
0.010.00-0.01
202013.8612.96-0.90
258
0.010.00-0.01
202114.0312.99-1.04
244
0.020.00-0.02
202214.2813.02-1.25
230
0.020.00-0.02
202314.5713.05-1.52
214
0.030.00-0.03
202414.8613.08-1.77
198
0.030.00-0.03
202515.1413.10-2.03
181
0.040.00-0.04
202615.4113.14-2.28
164
0.040.00-0.04
202715.6613.15-2.51
146
0.050.00-0.04
202815.9013.17-2.73
128
0.050.00-0.05
202916.1213.18-2.94
110
0.060.00-0.05
203016.3313.20-3.13
92
0.060.00-0.06
203116.5113.21-3.30
73
0.060.00-0.06
203216.6713.22-3.45
53
0.070.00-0.07
203316.8113.23-3.58
33
0.070.00-0.07
203416.9213.24-3.69
13
0.080.00-0.07
203517.0113.24-3.77
----
0.080.00-0.08
203617.0713.25-3.82
----
0.080.00-0.08
203717.1113.25-3.86
----
0.090.00-0.08
203817.1113.25-3.86
----
0.090.00-0.09
203917.0913.25-3.84
----
0.090.00-0.09
204017.0613.25-3.81
----
0.100.00-0.09
204117.0213.25-3.77
----
0.100.00-0.10
204216.9613.25-3.72
----
0.100.00-0.10
204316.9113.24-3.67
----
0.110.00-0.10
204416.8713.24-3.63
----
0.110.00-0.11
204516.8313.24-3.59
----
0.110.00-0.11
204616.7913.24-3.55
----
0.110.00-0.11
204716.7613.24-3.52
----
0.120.00-0.11
204816.7413.24-3.50
----
0.120.00-0.12
204916.7113.24-3.47
----
0.120.00-0.12
205016.6913.24-3.46
----
0.120.00-0.12
205116.6813.24-3.45
----
0.130.00-0.12
205216.6913.24-3.45
----
0.130.00-0.12
205316.7013.24-3.46
----
0.130.00-0.13
205416.7213.24-3.48
----
0.130.00-0.13
205516.7513.24-3.51
----
0.140.01-0.13
205616.7913.25-3.55
----
0.140.01-0.13
205716.8413.25-3.59
----
0.140.01-0.13
205816.8813.25-3.63
----
0.140.01-0.14
205916.9313.26-3.67
----
0.140.01-0.14
206016.9713.26-3.71
----
0.140.01-0.14
206117.0213.26-3.76
----
0.150.01-0.14
206217.0713.26-3.80
----
0.150.01-0.14
206317.1213.27-3.85
----
0.150.01-0.14
206417.1713.27-3.90
----
0.150.01-0.14
206517.2213.27-3.94
----
0.150.01-0.14
206617.2713.28-3.99
----
0.150.01-0.15
206717.3213.28-4.04
----
0.150.01-0.15
206817.3813.28-4.09
----
0.150.01-0.15
206917.4313.29-4.14
----
0.150.01-0.15
207017.4813.29-4.19
----
0.160.01-0.15
207117.5313.29-4.23
----
0.160.01-0.15
207217.5713.30-4.27
----
0.160.01-0.15
207317.6113.30-4.31
----
0.160.01-0.15
207417.6413.30-4.34
----
0.160.01-0.15
207517.6613.30-4.36
----
0.160.01-0.15
207617.6813.30-4.37
----
0.160.01-0.15
207717.6813.31-4.38
----
0.160.01-0.15
207817.6813.31-4.38
----
0.160.01-0.15
207917.6813.30-4.37
----
0.160.01-0.15
208017.6713.30-4.37
----
0.160.01-0.15
208117.6713.30-4.36
----
0.160.01-0.15
208217.6713.30-4.36
----
0.160.01-0.15
208317.6713.30-4.37
----
0.160.01-0.15
208417.6913.30-4.38
----
0.160.01-0.15
208517.7113.31-4.41
----
0.160.01-0.15
208617.7413.31-4.43
----
0.160.01-0.15
208717.7813.31-4.47
----
0.160.01-0.16
208817.8213.31-4.51
----
0.160.01-0.16
208917.8613.31-4.55
----
0.160.01-0.16
209017.9113.32-4.59
----
0.160.01-0.16
209117.9613.32-4.64
----
0.160.01-0.16
209218.0113.32-4.68
----
0.160.01-0.16


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 16.77% 13.84% -2.93%
2034
0.11% 0.00% -0.10%

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