Description of Proposed Provision:
B5.10: Reconfigure the special minimum benefit, phased in for retired and disabled workers newly eligible from 2025 through 2034: (a) A year of work (YOW) coverage is equal to earnings at or above $10,875 in 2018 (reflecting a full-time worker earning the federal minimum wage), adjusted thereafter for wage growth. (b) At implementation, set the minimum PIA at zero percent of AWI for those with 10 or fewer YOWs to 15 percent of AWI for those with 15 YOWs, increasing linearly so that it reaches 19 percent for 19 YOWs. Then the minimum PIA would jump up to 25 percent of AWI for those with 20 YOWs, increasing linearly so that it equals 35 percent of AWI for those with 35 or more YOWs. (c) Use the AWI for two years prior to the year of initial eligibility in the minimum PIA calculation with COLA increase after the year of initial eligibility. (d) Scale the YOW requirements for disabled workers, based on the number of years of non-disabled potential work.
Estimates based on the intermediate assumptions
of the 2018 Trustees Report