Description of Proposed Provision:
B7.12: Provide an option to split the 8-percent delayed retirement credit (DRC) to offer a lump sum benefit at initial entitlement equal to 2 percent of the 8 percent DRC earned, and a 6 percent DRC on subsequent monthly benefits, effective for workers newly entitled to retired worker benefits in 2020 and later. Widows are held harmless from the lump-sum decision.
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 | 13.90 | 12.96 | -0.94 | 258 | 0.05 | 0.00 | -0.05 | ||
| 2021 | 14.06 | 12.99 | -1.07 | 244 | 0.05 | 0.00 | -0.05 | ||
| 2022 | 14.31 | 13.03 | -1.28 | 229 | 0.05 | 0.00 | -0.05 | ||
| 2023 | 14.59 | 13.05 | -1.54 | 213 | 0.05 | 0.00 | -0.05 | ||
| 2024 | 14.86 | 13.09 | -1.78 | 197 | 0.04 | 0.00 | -0.04 | ||
| 2025 | 15.13 | 13.10 | -2.02 | 181 | 0.03 | 0.00 | -0.03 | ||
| 2026 | 15.39 | 13.14 | -2.26 | 163 | 0.02 | 0.00 | -0.02 | ||
| 2027 | 15.63 | 13.15 | -2.48 | 146 | 0.02 | 0.00 | -0.01 | ||
| 2028 | 15.86 | 13.17 | -2.70 | 128 | 0.01 | 0.00 | -0.01 | ||
| 2029 | 16.07 | 13.18 | -2.89 | 110 | 0.01 | 0.00 | -0.01 | ||
| 2030 | 16.27 | 13.20 | -3.08 | 92 | 0.01 | 0.00 | -0.01 | ||
| 2031 | 16.45 | 13.21 | -3.24 | 74 | 0.00 | 0.00 | -0.00 | ||
| 2032 | 16.61 | 13.22 | -3.39 | 55 | 0.00 | 0.00 | -0.00 | ||
| 2033 | 16.74 | 13.23 | -3.51 | 35 | -0.00 | -0.00 | 0.00 | ||
| 2034 | 16.84 | 13.23 | -3.61 | 15 | -0.00 | -0.00 | 0.00 | ||
| 2035 | 16.92 | 13.24 | -3.68 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2036 | 16.98 | 13.24 | -3.74 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2037 | 17.01 | 13.25 | -3.76 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2038 | 17.01 | 13.25 | -3.76 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2039 | 16.99 | 13.25 | -3.74 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2040 | 16.95 | 13.25 | -3.71 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2041 | 16.90 | 13.25 | -3.66 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2042 | 16.85 | 13.24 | -3.61 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2043 | 16.80 | 13.24 | -3.56 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2044 | 16.75 | 13.24 | -3.51 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2045 | 16.71 | 13.24 | -3.47 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2046 | 16.67 | 13.23 | -3.44 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2047 | 16.64 | 13.23 | -3.41 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2048 | 16.61 | 13.23 | -3.38 | ---- | -0.01 | -0.00 | 0.01 | ||
| 2049 | 16.58 | 13.23 | -3.35 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2050 | 16.56 | 13.23 | -3.33 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2051 | 16.55 | 13.23 | -3.32 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2052 | 16.55 | 13.23 | -3.32 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2053 | 16.57 | 13.23 | -3.33 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2054 | 16.59 | 13.23 | -3.35 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2055 | 16.62 | 13.24 | -3.38 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2056 | 16.65 | 13.24 | -3.41 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2057 | 16.70 | 13.24 | -3.45 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2058 | 16.74 | 13.25 | -3.49 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2059 | 16.78 | 13.25 | -3.53 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2060 | 16.83 | 13.25 | -3.58 | ---- | 0.00 | 0.00 | -0.00 | ||
| 2061 | 16.87 | 13.26 | -3.62 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2062 | 16.92 | 13.26 | -3.66 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2063 | 16.97 | 13.26 | -3.71 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2064 | 17.02 | 13.27 | -3.75 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2065 | 17.06 | 13.27 | -3.80 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2066 | 17.12 | 13.27 | -3.84 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2067 | 17.17 | 13.27 | -3.89 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2068 | 17.22 | 13.28 | -3.94 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2069 | 17.27 | 13.28 | -3.99 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2070 | 17.32 | 13.28 | -4.04 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2071 | 17.37 | 13.29 | -4.08 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2072 | 17.41 | 13.29 | -4.12 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2073 | 17.45 | 13.29 | -4.15 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2074 | 17.48 | 13.29 | -4.18 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2075 | 17.50 | 13.30 | -4.21 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2076 | 17.52 | 13.30 | -4.22 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2077 | 17.52 | 13.30 | -4.22 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2078 | 17.52 | 13.30 | -4.22 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2079 | 17.51 | 13.30 | -4.22 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2080 | 17.51 | 13.30 | -4.21 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2081 | 17.50 | 13.30 | -4.20 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2082 | 17.50 | 13.30 | -4.20 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2083 | 17.51 | 13.30 | -4.21 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2084 | 17.52 | 13.30 | -4.23 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2085 | 17.55 | 13.30 | -4.25 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2086 | 17.58 | 13.30 | -4.28 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2087 | 17.61 | 13.30 | -4.31 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2088 | 17.65 | 13.31 | -4.35 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2089 | 17.70 | 13.31 | -4.39 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2090 | 17.75 | 13.31 | -4.44 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2091 | 17.79 | 13.31 | -4.48 | ---- | -0.00 | -0.00 | 0.00 | ||
| 2092 | 17.84 | 13.32 | -4.52 | ---- | -0.00 | -0.00 | 0.00 | ||
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 | 16.67% | 13.84% | -2.83% | 2034 | 0.00% | 0.00% | -0.00% | ||
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.