Description of Proposed Provision:
B7.10: Replace the current-law WEP with a new calculation for most OASI and DI benefits based on covered and non-covered earnings, phased in for beneficiaries becoming newly eligible in 2025 through 2034. For this new approach, compute a PIA based on all past earnings (covered and non-covered), and multiply by the "non-covered earnings ratio." This ratio is equal to the current-law concept of the average indexed monthly earnings computed without non-covered earnings divided by a modified average indexed monthly earnings that includes both covered and non-covered earnings in our records.

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
201813.8112.64-1.17
288
0.000.000.00
201913.9512.87-1.08
272
0.000.000.00
202014.1212.89-1.23
256
0.000.000.00
202114.2712.92-1.35
239
0.000.000.00
202214.4412.95-1.49
223
0.000.000.00
202314.6212.97-1.66
206
0.000.000.00
202414.8012.99-1.81
188
0.000.000.00
202514.9813.01-1.98
171
-0.00-0.000.00
202615.1613.13-2.02
154
-0.00-0.000.00
202715.3613.15-2.21
137
-0.00-0.000.00
202815.5813.17-2.41
120
-0.00-0.000.00
202915.7913.19-2.60
104
-0.00-0.000.00
203015.9813.20-2.78
86
-0.00-0.000.00
203116.1613.22-2.94
69
-0.00-0.000.00
203216.3113.23-3.08
51
-0.01-0.000.01
203316.4413.24-3.21
33
-0.01-0.000.01
203416.5513.25-3.31
14
-0.01-0.000.01
203516.6413.25-3.38
----
-0.01-0.000.01
203616.7113.26-3.45
----
-0.02-0.000.02
203716.7613.26-3.50
----
-0.02-0.000.02
203816.8013.27-3.53
----
-0.02-0.000.02
203916.8113.27-3.53
----
-0.03-0.000.03
204016.8013.27-3.53
----
-0.03-0.000.03
204116.7813.27-3.50
----
-0.03-0.000.03
204216.7413.27-3.47
----
-0.04-0.000.04
204316.6913.27-3.43
----
-0.04-0.000.04
204416.6513.27-3.38
----
-0.04-0.000.04
204516.6113.27-3.35
----
-0.05-0.000.05
204616.5813.27-3.31
----
-0.05-0.000.05
204716.5513.26-3.28
----
-0.05-0.000.05
204816.5213.26-3.25
----
-0.06-0.000.05
204916.4913.26-3.23
----
-0.06-0.000.06
205016.4813.26-3.21
----
-0.06-0.000.06
205116.4713.26-3.20
----
-0.07-0.000.06
205216.4713.27-3.20
----
-0.07-0.000.06
205316.4713.27-3.21
----
-0.07-0.000.07
205416.4913.27-3.22
----
-0.07-0.000.07
205516.5113.27-3.24
----
-0.07-0.000.07
205616.5513.27-3.27
----
-0.08-0.000.07
205716.5913.28-3.31
----
-0.08-0.000.07
205816.6313.28-3.35
----
-0.08-0.000.08
205916.6813.29-3.39
----
-0.08-0.000.08
206016.7313.29-3.44
----
-0.08-0.000.08
206116.7713.29-3.48
----
-0.08-0.000.08
206216.8213.30-3.53
----
-0.09-0.000.08
206316.8813.30-3.57
----
-0.09-0.000.08
206416.9313.31-3.62
----
-0.09-0.000.08
206516.9813.31-3.67
----
-0.09-0.000.08
206617.0413.31-3.72
----
-0.09-0.000.08
206717.0913.32-3.78
----
-0.09-0.010.08
206817.1513.32-3.83
----
-0.09-0.010.08
206917.2113.33-3.89
----
-0.09-0.010.08
207017.2713.33-3.94
----
-0.09-0.010.09
207117.3313.33-4.00
----
-0.09-0.010.09
207217.3813.34-4.04
----
-0.09-0.010.09
207317.4213.34-4.08
----
-0.09-0.010.09
207417.4613.34-4.12
----
-0.09-0.010.09
207517.4913.35-4.15
----
-0.09-0.010.09
207617.5213.35-4.17
----
-0.09-0.010.09
207717.5313.35-4.18
----
-0.09-0.010.09
207817.5313.35-4.18
----
-0.09-0.010.09
207917.5313.35-4.18
----
-0.09-0.010.09
208017.5113.35-4.16
----
-0.09-0.010.09
208117.5013.35-4.15
----
-0.09-0.010.09
208217.4813.35-4.13
----
-0.09-0.010.09
208317.4613.35-4.11
----
-0.09-0.010.09
208417.4513.35-4.10
----
-0.09-0.010.09
208517.4413.35-4.09
----
-0.09-0.010.09
208617.4413.35-4.09
----
-0.09-0.010.09
208717.4413.35-4.09
----
-0.09-0.010.09
208817.4513.35-4.11
----
-0.09-0.010.09
208917.4813.35-4.13
----
-0.09-0.010.09
209017.5113.35-4.16
----
-0.09-0.010.09
209117.5413.35-4.19
----
-0.09-0.010.09
209217.5813.36-4.23
----
-0.09-0.010.09
209317.6313.36-4.27
----
-0.09-0.010.09


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
2018-2092 16.63% 13.84% -2.79%
2034
-0.05% -0.00% 0.05%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2018 Trustees Report.