Summary Measures and Graphs
Description of Proposed Provision:
E2.12: Eliminate the taxable maximum in years 2031 and later. Phase in elimination by taxing all earnings above the current-law taxable maximum at: 1.24 percent in 2022, 2.48 percent in 2023, and so on, up to 12.40 percent in 2031. Provide benefit credit for earnings above the current-law taxable maximum. Create a new bend point at the current-law taxable maximum with a 3 percent formula factor applying above the new bend point.
Estimates based on the intermediate assumptions
of the 2019 Trustees Report
| Summary Measures | |||||||
|---|---|---|---|---|---|---|---|
| Current law [percent of payroll] |
Change from current law [percent of payroll] |
Shortfall eliminated | |||||
| Long-range actuarial balance |
Annual balance in 75th year |
Long-range actuarial balance |
Annual balance in 75th year |
Long-range actuarial balance |
Annual balance in 75th year |
||
| -2.78 | -4.11 | 1.90 | 2.11 | 68% | 51% | ||
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