Detailed Single Year Tables
Description of Proposed Provision:
B3.16: For retired worker and disabled worker beneficiaries becoming initially eligible in January 2026 or later, phase in a new benefit formula (from 2026 to 2035). Replace the existing two primary insurance amount (PIA) bend points with three new bend points as follows: (1) 25% AWI/12 from 2 years prior to initial eligibility; (2) 100% AWI/12 from 2 years prior to initial eligibility; and (3) 125% AWI/12 from 2 years prior to initial eligibility. The new PIA factors are 95%, 27.5%, 5% and 2%. During the phase in, those becoming newly eligible for benefits will receive an increasing portion of their benefits based on the new formula, reaching 100% of the new formula in 2035.
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 |
|||
| 2019 | 13.91 | 12.85 | -1.06 | 273 | 0.00 | 0.00 | 0.00 | ||
| 2020 | 13.94 | 12.87 | -1.07 | 260 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.09 | 12.90 | -1.19 | 245 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.23 | 12.92 | -1.31 | 229 | 0.00 | 0.00 | 0.00 | ||
| 2023 | 14.40 | 12.94 | -1.46 | 213 | 0.00 | 0.00 | 0.00 | ||
| 2024 | 14.59 | 12.97 | -1.62 | 197 | 0.00 | 0.00 | 0.00 | ||
| 2025 | 14.79 | 12.99 | -1.80 | 180 | 0.00 | 0.00 | 0.00 | ||
| 2026 | 14.99 | 13.11 | -1.88 | 163 | -0.00 | -0.00 | 0.00 | ||
| 2027 | 15.19 | 13.13 | -2.06 | 147 | -0.00 | -0.00 | 0.00 | ||
| 2028 | 15.43 | 13.17 | -2.25 | 130 | -0.01 | -0.00 | 0.01 | ||
| 2029 | 15.61 | 13.19 | -2.43 | 114 | -0.01 | -0.00 | 0.01 | ||
| 2030 | 15.79 | 13.20 | -2.58 | 97 | -0.02 | -0.00 | 0.02 | ||
| 2031 | 15.94 | 13.21 | -2.72 | 81 | -0.03 | -0.00 | 0.03 | ||
| 2032 | 16.06 | 13.23 | -2.83 | 64 | -0.05 | -0.00 | 0.05 | ||
| 2033 | 16.16 | 13.23 | -2.92 | 47 | -0.08 | -0.00 | 0.07 | ||
| 2034 | 16.22 | 13.24 | -2.98 | 29 | -0.11 | -0.01 | 0.10 | ||
| 2035 | 16.25 | 13.24 | -3.00 | 12 | -0.15 | -0.01 | 0.14 | ||
| 2036 | 16.26 | 13.25 | -3.01 | ---- | -0.20 | -0.01 | 0.19 | ||
| 2037 | 16.26 | 13.25 | -3.01 | ---- | -0.26 | -0.01 | 0.24 | ||
| 2038 | 16.24 | 13.25 | -2.99 | ---- | -0.32 | -0.02 | 0.30 | ||
| 2039 | 16.21 | 13.25 | -2.96 | ---- | -0.39 | -0.02 | 0.37 | ||
| 2040 | 16.15 | 13.25 | -2.91 | ---- | -0.46 | -0.03 | 0.43 | ||
| 2041 | 16.08 | 13.24 | -2.83 | ---- | -0.53 | -0.03 | 0.50 | ||
| 2042 | 15.98 | 13.24 | -2.74 | ---- | -0.61 | -0.03 | 0.57 | ||
| 2043 | 15.88 | 13.23 | -2.64 | ---- | -0.68 | -0.04 | 0.64 | ||
| 2044 | 15.77 | 13.23 | -2.54 | ---- | -0.75 | -0.04 | 0.71 | ||
| 2045 | 15.66 | 13.22 | -2.44 | ---- | -0.82 | -0.05 | 0.78 | ||
| 2046 | 15.56 | 13.22 | -2.34 | ---- | -0.89 | -0.05 | 0.84 | ||
| 2047 | 15.47 | 13.21 | -2.26 | ---- | -0.96 | -0.06 | 0.90 | ||
| 2048 | 15.39 | 13.21 | -2.18 | ---- | -1.02 | -0.06 | 0.96 | ||
| 2049 | 15.30 | 13.21 | -2.10 | ---- | -1.08 | -0.06 | 1.02 | ||
| 2050 | 15.23 | 13.20 | -2.03 | ---- | -1.14 | -0.07 | 1.07 | ||
| 2051 | 15.17 | 13.20 | -1.97 | ---- | -1.19 | -0.07 | 1.12 | ||
| 2052 | 15.12 | 13.20 | -1.92 | ---- | -1.25 | -0.07 | 1.17 | ||
| 2053 | 15.08 | 13.20 | -1.88 | ---- | -1.29 | -0.08 | 1.22 | ||
| 2054 | 15.04 | 13.20 | -1.85 | ---- | -1.34 | -0.08 | 1.26 | ||
| 2055 | 15.02 | 13.20 | -1.83 | ---- | -1.39 | -0.08 | 1.30 | ||
| 2056 | 15.01 | 13.20 | -1.82 | ---- | -1.43 | -0.08 | 1.34 | ||
| 2057 | 15.01 | 13.20 | -1.82 | ---- | -1.47 | -0.09 | 1.38 | ||
| 2058 | 15.02 | 13.20 | -1.82 | ---- | -1.50 | -0.09 | 1.42 | ||
| 2059 | 15.04 | 13.20 | -1.84 | ---- | -1.54 | -0.09 | 1.45 | ||
| 2060 | 15.06 | 13.20 | -1.86 | ---- | -1.57 | -0.09 | 1.48 | ||
| 2061 | 15.08 | 13.21 | -1.88 | ---- | -1.60 | -0.10 | 1.50 | ||
| 2062 | 15.11 | 13.21 | -1.90 | ---- | -1.62 | -0.10 | 1.52 | ||
| 2063 | 15.15 | 13.21 | -1.93 | ---- | -1.64 | -0.10 | 1.54 | ||
| 2064 | 15.18 | 13.21 | -1.97 | ---- | -1.66 | -0.10 | 1.56 | ||
| 2065 | 15.22 | 13.22 | -2.00 | ---- | -1.68 | -0.10 | 1.58 | ||
| 2066 | 15.26 | 13.22 | -2.04 | ---- | -1.69 | -0.10 | 1.59 | ||
| 2067 | 15.31 | 13.22 | -2.08 | ---- | -1.71 | -0.10 | 1.60 | ||
| 2068 | 15.36 | 13.23 | -2.13 | ---- | -1.72 | -0.10 | 1.62 | ||
| 2069 | 15.41 | 13.23 | -2.18 | ---- | -1.73 | -0.10 | 1.63 | ||
| 2070 | 15.46 | 13.23 | -2.22 | ---- | -1.74 | -0.10 | 1.63 | ||
| 2071 | 15.50 | 13.24 | -2.27 | ---- | -1.75 | -0.11 | 1.64 | ||
| 2072 | 15.55 | 13.24 | -2.31 | ---- | -1.75 | -0.11 | 1.65 | ||
| 2073 | 15.59 | 13.24 | -2.34 | ---- | -1.76 | -0.11 | 1.66 | ||
| 2074 | 15.62 | 13.25 | -2.38 | ---- | -1.77 | -0.11 | 1.66 | ||
| 2075 | 15.66 | 13.25 | -2.41 | ---- | -1.77 | -0.11 | 1.67 | ||
| 2076 | 15.68 | 13.25 | -2.43 | ---- | -1.78 | -0.11 | 1.67 | ||
| 2077 | 15.70 | 13.25 | -2.44 | ---- | -1.78 | -0.11 | 1.67 | ||
| 2078 | 15.70 | 13.25 | -2.45 | ---- | -1.78 | -0.11 | 1.67 | ||
| 2079 | 15.70 | 13.25 | -2.44 | ---- | -1.78 | -0.11 | 1.67 | ||
| 2080 | 15.68 | 13.25 | -2.43 | ---- | -1.78 | -0.11 | 1.67 | ||
| 2081 | 15.67 | 13.25 | -2.41 | ---- | -1.78 | -0.11 | 1.67 | ||
| 2082 | 15.65 | 13.25 | -2.40 | ---- | -1.78 | -0.11 | 1.67 | ||
| 2083 | 15.63 | 13.25 | -2.38 | ---- | -1.77 | -0.11 | 1.67 | ||
| 2084 | 15.61 | 13.25 | -2.36 | ---- | -1.77 | -0.11 | 1.67 | ||
| 2085 | 15.59 | 13.25 | -2.34 | ---- | -1.77 | -0.11 | 1.66 | ||
| 2086 | 15.57 | 13.25 | -2.32 | ---- | -1.77 | -0.11 | 1.66 | ||
| 2087 | 15.56 | 13.25 | -2.32 | ---- | -1.77 | -0.11 | 1.66 | ||
| 2088 | 15.56 | 13.24 | -2.32 | ---- | -1.77 | -0.11 | 1.66 | ||
| 2089 | 15.57 | 13.25 | -2.32 | ---- | -1.77 | -0.11 | 1.66 | ||
| 2090 | 15.59 | 13.25 | -2.34 | ---- | -1.77 | -0.11 | 1.66 | ||
| 2091 | 15.61 | 13.25 | -2.37 | ---- | -1.77 | -0.11 | 1.67 | ||
| 2092 | 15.65 | 13.25 | -2.40 | ---- | -1.78 | -0.11 | 1.67 | ||
| 2093 | 15.69 | 13.25 | -2.44 | ---- | -1.78 | -0.11 | 1.67 | ||
| 2094 | 15.74 | 13.26 | -2.48 | ---- | -1.79 | -0.11 | 1.68 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2019-2093 | 15.59% | 13.75% | -1.84% | 2035 | -1.01% | -0.06% | 0.95% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2035. |
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Based on Intermediate Assumptions of the 2019 Trustees Report.