Description of Proposed Provision:
C2.2: 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, raise the earliest eligibility age (EEA) for retired-workers, aged widow(er)s, and disabled widow(er)s by the same amount as the NRA starting for those attaining EEA in 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 |
|||
| 2018 | 13.81 | 12.64 | -1.17 | 288 | 0.00 | 0.00 | 0.00 | ||
| 2019 | 13.95 | 12.87 | -1.07 | 272 | -0.01 | 0.00 | 0.01 | ||
| 2020 | 14.11 | 12.90 | -1.22 | 256 | -0.01 | 0.00 | 0.02 | ||
| 2021 | 14.25 | 12.92 | -1.33 | 240 | -0.02 | 0.00 | 0.02 | ||
| 2022 | 14.41 | 12.95 | -1.46 | 223 | -0.03 | 0.00 | 0.03 | ||
| 2023 | 14.58 | 12.97 | -1.61 | 207 | -0.04 | 0.01 | 0.05 | ||
| 2024 | 14.75 | 13.00 | -1.75 | 190 | -0.05 | 0.01 | 0.06 | ||
| 2025 | 14.92 | 13.02 | -1.90 | 173 | -0.06 | 0.01 | 0.07 | ||
| 2026 | 15.09 | 13.14 | -1.95 | 156 | -0.07 | 0.01 | 0.08 | ||
| 2027 | 15.29 | 13.16 | -2.13 | 140 | -0.07 | 0.01 | 0.08 | ||
| 2028 | 15.50 | 13.18 | -2.32 | 124 | -0.08 | 0.01 | 0.09 | ||
| 2029 | 15.70 | 13.20 | -2.50 | 107 | -0.09 | 0.01 | 0.10 | ||
| 2030 | 15.88 | 13.21 | -2.67 | 91 | -0.10 | 0.01 | 0.11 | ||
| 2031 | 16.05 | 13.23 | -2.82 | 74 | -0.11 | 0.01 | 0.12 | ||
| 2032 | 16.20 | 13.24 | -2.96 | 57 | -0.12 | 0.01 | 0.13 | ||
| 2033 | 16.32 | 13.25 | -3.07 | 39 | -0.13 | 0.01 | 0.14 | ||
| 2034 | 16.42 | 13.26 | -3.16 | 21 | -0.14 | 0.01 | 0.15 | ||
| 2035 | 16.50 | 13.27 | -3.23 | 2 | -0.15 | 0.01 | 0.16 | ||
| 2036 | 16.56 | 13.27 | -3.29 | ---- | -0.16 | 0.01 | 0.18 | ||
| 2037 | 16.61 | 13.28 | -3.33 | ---- | -0.18 | 0.01 | 0.19 | ||
| 2038 | 16.63 | 13.28 | -3.35 | ---- | -0.19 | 0.01 | 0.20 | ||
| 2039 | 16.63 | 13.28 | -3.34 | ---- | -0.21 | 0.01 | 0.22 | ||
| 2040 | 16.61 | 13.28 | -3.33 | ---- | -0.22 | 0.01 | 0.23 | ||
| 2041 | 16.58 | 13.28 | -3.29 | ---- | -0.23 | 0.01 | 0.24 | ||
| 2042 | 16.53 | 13.28 | -3.24 | ---- | -0.25 | 0.01 | 0.26 | ||
| 2043 | 16.47 | 13.28 | -3.19 | ---- | -0.27 | 0.01 | 0.28 | ||
| 2044 | 16.41 | 13.28 | -3.13 | ---- | -0.29 | 0.01 | 0.30 | ||
| 2045 | 16.35 | 13.28 | -3.08 | ---- | -0.31 | 0.01 | 0.32 | ||
| 2046 | 16.30 | 13.28 | -3.03 | ---- | -0.32 | 0.01 | 0.33 | ||
| 2047 | 16.26 | 13.28 | -2.98 | ---- | -0.34 | 0.01 | 0.36 | ||
| 2048 | 16.21 | 13.28 | -2.93 | ---- | -0.37 | 0.01 | 0.38 | ||
| 2049 | 16.16 | 13.28 | -2.88 | ---- | -0.39 | 0.01 | 0.40 | ||
| 2050 | 16.12 | 13.28 | -2.85 | ---- | -0.42 | 0.01 | 0.43 | ||
| 2051 | 16.08 | 13.28 | -2.81 | ---- | -0.45 | 0.01 | 0.46 | ||
| 2052 | 16.05 | 13.28 | -2.78 | ---- | -0.48 | 0.01 | 0.49 | ||
| 2053 | 16.04 | 13.28 | -2.76 | ---- | -0.51 | 0.01 | 0.52 | ||
| 2054 | 16.03 | 13.28 | -2.75 | ---- | -0.53 | 0.01 | 0.54 | ||
| 2055 | 16.03 | 13.28 | -2.75 | ---- | -0.56 | 0.01 | 0.56 | ||
| 2056 | 16.05 | 13.29 | -2.76 | ---- | -0.58 | 0.01 | 0.59 | ||
| 2057 | 16.07 | 13.29 | -2.78 | ---- | -0.60 | 0.01 | 0.61 | ||
| 2058 | 16.09 | 13.30 | -2.80 | ---- | -0.62 | 0.01 | 0.63 | ||
| 2059 | 16.12 | 13.30 | -2.82 | ---- | -0.64 | 0.01 | 0.65 | ||
| 2060 | 16.15 | 13.30 | -2.84 | ---- | -0.66 | 0.01 | 0.67 | ||
| 2061 | 16.18 | 13.31 | -2.87 | ---- | -0.68 | 0.01 | 0.69 | ||
| 2062 | 16.21 | 13.31 | -2.90 | ---- | -0.70 | 0.01 | 0.71 | ||
| 2063 | 16.24 | 13.31 | -2.93 | ---- | -0.72 | 0.01 | 0.73 | ||
| 2064 | 16.27 | 13.32 | -2.95 | ---- | -0.75 | 0.01 | 0.75 | ||
| 2065 | 16.30 | 13.32 | -2.98 | ---- | -0.77 | 0.01 | 0.78 | ||
| 2066 | 16.32 | 13.32 | -3.00 | ---- | -0.80 | 0.00 | 0.81 | ||
| 2067 | 16.36 | 13.33 | -3.03 | ---- | -0.83 | 0.00 | 0.83 | ||
| 2068 | 16.39 | 13.33 | -3.06 | ---- | -0.85 | 0.00 | 0.85 | ||
| 2069 | 16.43 | 13.33 | -3.10 | ---- | -0.87 | 0.00 | 0.88 | ||
| 2070 | 16.47 | 13.34 | -3.13 | ---- | -0.89 | 0.00 | 0.90 | ||
| 2071 | 16.51 | 13.34 | -3.17 | ---- | -0.91 | 0.00 | 0.91 | ||
| 2072 | 16.54 | 13.35 | -3.20 | ---- | -0.93 | 0.00 | 0.93 | ||
| 2073 | 16.57 | 13.35 | -3.22 | ---- | -0.94 | 0.00 | 0.95 | ||
| 2074 | 16.59 | 13.35 | -3.24 | ---- | -0.96 | 0.00 | 0.96 | ||
| 2075 | 16.61 | 13.35 | -3.26 | ---- | -0.98 | 0.00 | 0.98 | ||
| 2076 | 16.63 | 13.36 | -3.27 | ---- | -0.99 | 0.00 | 0.99 | ||
| 2077 | 16.62 | 13.36 | -3.27 | ---- | -1.00 | -0.00 | 1.00 | ||
| 2078 | 16.61 | 13.35 | -3.25 | ---- | -1.02 | -0.00 | 1.02 | ||
| 2079 | 16.58 | 13.35 | -3.22 | ---- | -1.04 | -0.00 | 1.04 | ||
| 2080 | 16.54 | 13.35 | -3.19 | ---- | -1.07 | -0.00 | 1.06 | ||
| 2081 | 16.49 | 13.35 | -3.14 | ---- | -1.09 | -0.00 | 1.09 | ||
| 2082 | 16.45 | 13.35 | -3.10 | ---- | -1.12 | -0.00 | 1.12 | ||
| 2083 | 16.41 | 13.35 | -3.06 | ---- | -1.14 | -0.00 | 1.14 | ||
| 2084 | 16.38 | 13.35 | -3.03 | ---- | -1.16 | -0.00 | 1.16 | ||
| 2085 | 16.35 | 13.35 | -3.01 | ---- | -1.18 | -0.01 | 1.17 | ||
| 2086 | 16.34 | 13.34 | -3.00 | ---- | -1.19 | -0.01 | 1.18 | ||
| 2087 | 16.33 | 13.34 | -2.99 | ---- | -1.20 | -0.01 | 1.19 | ||
| 2088 | 16.34 | 13.34 | -3.00 | ---- | -1.21 | -0.01 | 1.20 | ||
| 2089 | 16.35 | 13.34 | -3.01 | ---- | -1.22 | -0.01 | 1.20 | ||
| 2090 | 16.37 | 13.34 | -3.03 | ---- | -1.23 | -0.01 | 1.21 | ||
| 2091 | 16.39 | 13.34 | -3.05 | ---- | -1.24 | -0.01 | 1.23 | ||
| 2092 | 16.41 | 13.34 | -3.07 | ---- | -1.27 | -0.02 | 1.25 | ||
| 2093 | 16.44 | 13.35 | -3.09 | ---- | -1.29 | -0.02 | 1.27 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2018-2092 | 16.18% | 13.85% | -2.33% | 2035 | -0.51% | 0.01% | 0.51% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2018 Trustees Report.