Detailed Single Year Tables
Description of Proposed Provision:
B1.3: Progressive price indexing (40th percentile) of PIA factors beginning with individuals newly eligible for OASDI benefits in 2028: Create a new bend point at the 40th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 40th percentile and below. Reduce the 32 and 15 percent factors above the 40th percentile such that the initial benefit for a worker with AIME equal to the taxable maximum grows by inflation rather than the growth in the SSA average wage index.
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 |
|||
| 2021 | 14.11 | 12.31 | -1.81 | 253 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.30 | 12.93 | -1.38 | 231 | 0.00 | 0.00 | 0.00 | ||
| 2023 | 14.43 | 12.91 | -1.52 | 214 | 0.00 | 0.00 | 0.00 | ||
| 2024 | 14.64 | 12.94 | -1.69 | 196 | 0.00 | 0.00 | 0.00 | ||
| 2025 | 14.86 | 12.96 | -1.90 | 178 | 0.00 | 0.00 | 0.00 | ||
| 2026 | 15.10 | 13.08 | -2.03 | 159 | 0.00 | 0.00 | 0.00 | ||
| 2027 | 15.36 | 13.10 | -2.26 | 141 | 0.00 | 0.00 | 0.00 | ||
| 2028 | 15.62 | 13.14 | -2.49 | 122 | -0.00 | -0.00 | 0.00 | ||
| 2029 | 15.87 | 13.17 | -2.70 | 104 | -0.00 | -0.00 | 0.00 | ||
| 2030 | 16.10 | 13.19 | -2.91 | 85 | -0.00 | -0.00 | 0.00 | ||
| 2031 | 16.28 | 13.21 | -3.07 | 66 | -0.01 | -0.00 | 0.01 | ||
| 2032 | 16.42 | 13.22 | -3.20 | 47 | -0.01 | -0.00 | 0.01 | ||
| 2033 | 16.54 | 13.23 | -3.31 | 27 | -0.02 | -0.00 | 0.02 | ||
| 2034 | 16.62 | 13.24 | -3.39 | 8 | -0.03 | -0.00 | 0.03 | ||
| 2035 | 16.69 | 13.24 | -3.44 | ---- | -0.05 | -0.00 | 0.05 | ||
| 2036 | 16.73 | 13.25 | -3.48 | ---- | -0.07 | -0.00 | 0.07 | ||
| 2037 | 16.77 | 13.25 | -3.52 | ---- | -0.09 | -0.00 | 0.09 | ||
| 2038 | 16.79 | 13.26 | -3.53 | ---- | -0.12 | -0.01 | 0.12 | ||
| 2039 | 16.80 | 13.26 | -3.54 | ---- | -0.16 | -0.01 | 0.15 | ||
| 2040 | 16.79 | 13.26 | -3.53 | ---- | -0.19 | -0.01 | 0.18 | ||
| 2041 | 16.79 | 13.26 | -3.52 | ---- | -0.23 | -0.01 | 0.22 | ||
| 2042 | 16.76 | 13.26 | -3.50 | ---- | -0.28 | -0.01 | 0.26 | ||
| 2043 | 16.72 | 13.26 | -3.46 | ---- | -0.32 | -0.02 | 0.31 | ||
| 2044 | 16.67 | 13.26 | -3.41 | ---- | -0.37 | -0.02 | 0.35 | ||
| 2045 | 16.62 | 13.26 | -3.36 | ---- | -0.43 | -0.02 | 0.40 | ||
| 2046 | 16.57 | 13.26 | -3.32 | ---- | -0.48 | -0.03 | 0.46 | ||
| 2047 | 16.53 | 13.25 | -3.28 | ---- | -0.54 | -0.03 | 0.51 | ||
| 2048 | 16.49 | 13.25 | -3.24 | ---- | -0.61 | -0.03 | 0.57 | ||
| 2049 | 16.44 | 13.25 | -3.19 | ---- | -0.67 | -0.04 | 0.64 | ||
| 2050 | 16.40 | 13.25 | -3.15 | ---- | -0.74 | -0.04 | 0.70 | ||
| 2051 | 16.35 | 13.25 | -3.10 | ---- | -0.81 | -0.04 | 0.77 | ||
| 2052 | 16.31 | 13.25 | -3.06 | ---- | -0.88 | -0.05 | 0.83 | ||
| 2053 | 16.26 | 13.25 | -3.02 | ---- | -0.95 | -0.05 | 0.90 | ||
| 2054 | 16.22 | 13.25 | -2.98 | ---- | -1.03 | -0.06 | 0.97 | ||
| 2055 | 16.19 | 13.25 | -2.94 | ---- | -1.10 | -0.06 | 1.04 | ||
| 2056 | 16.16 | 13.24 | -2.91 | ---- | -1.18 | -0.07 | 1.12 | ||
| 2057 | 16.12 | 13.24 | -2.88 | ---- | -1.26 | -0.07 | 1.19 | ||
| 2058 | 16.10 | 13.24 | -2.85 | ---- | -1.34 | -0.07 | 1.26 | ||
| 2059 | 16.07 | 13.24 | -2.83 | ---- | -1.42 | -0.08 | 1.34 | ||
| 2060 | 16.05 | 13.24 | -2.81 | ---- | -1.50 | -0.08 | 1.41 | ||
| 2061 | 16.03 | 13.24 | -2.78 | ---- | -1.57 | -0.09 | 1.49 | ||
| 2062 | 16.00 | 13.24 | -2.76 | ---- | -1.65 | -0.09 | 1.56 | ||
| 2063 | 15.97 | 13.24 | -2.73 | ---- | -1.73 | -0.10 | 1.63 | ||
| 2064 | 15.95 | 13.24 | -2.70 | ---- | -1.81 | -0.10 | 1.70 | ||
| 2065 | 15.92 | 13.24 | -2.68 | ---- | -1.88 | -0.11 | 1.78 | ||
| 2066 | 15.90 | 13.24 | -2.65 | ---- | -1.96 | -0.11 | 1.85 | ||
| 2067 | 15.87 | 13.24 | -2.63 | ---- | -2.03 | -0.11 | 1.92 | ||
| 2068 | 15.85 | 13.24 | -2.61 | ---- | -2.11 | -0.12 | 1.99 | ||
| 2069 | 15.83 | 13.24 | -2.59 | ---- | -2.18 | -0.12 | 2.06 | ||
| 2070 | 15.81 | 13.24 | -2.57 | ---- | -2.26 | -0.13 | 2.13 | ||
| 2071 | 15.79 | 13.24 | -2.55 | ---- | -2.33 | -0.13 | 2.20 | ||
| 2072 | 15.77 | 13.24 | -2.53 | ---- | -2.41 | -0.14 | 2.27 | ||
| 2073 | 15.74 | 13.24 | -2.50 | ---- | -2.48 | -0.14 | 2.34 | ||
| 2074 | 15.72 | 13.24 | -2.48 | ---- | -2.56 | -0.15 | 2.41 | ||
| 2075 | 15.69 | 13.24 | -2.45 | ---- | -2.63 | -0.15 | 2.48 | ||
| 2076 | 15.65 | 13.24 | -2.41 | ---- | -2.70 | -0.15 | 2.54 | ||
| 2077 | 15.60 | 13.24 | -2.37 | ---- | -2.77 | -0.16 | 2.61 | ||
| 2078 | 15.54 | 13.23 | -2.31 | ---- | -2.83 | -0.16 | 2.67 | ||
| 2079 | 15.48 | 13.23 | -2.25 | ---- | -2.89 | -0.17 | 2.73 | ||
| 2080 | 15.40 | 13.23 | -2.17 | ---- | -2.95 | -0.17 | 2.79 | ||
| 2081 | 15.32 | 13.22 | -2.09 | ---- | -3.01 | -0.17 | 2.84 | ||
| 2082 | 15.23 | 13.22 | -2.01 | ---- | -3.07 | -0.18 | 2.89 | ||
| 2083 | 15.13 | 13.21 | -1.92 | ---- | -3.12 | -0.18 | 2.94 | ||
| 2084 | 15.03 | 13.21 | -1.82 | ---- | -3.17 | -0.18 | 2.99 | ||
| 2085 | 14.92 | 13.20 | -1.72 | ---- | -3.22 | -0.18 | 3.03 | ||
| 2086 | 14.81 | 13.19 | -1.62 | ---- | -3.27 | -0.19 | 3.08 | ||
| 2087 | 14.70 | 13.19 | -1.51 | ---- | -3.31 | -0.19 | 3.12 | ||
| 2088 | 14.58 | 13.18 | -1.41 | ---- | -3.35 | -0.19 | 3.16 | ||
| 2089 | 14.48 | 13.17 | -1.30 | ---- | -3.39 | -0.20 | 3.20 | ||
| 2090 | 14.38 | 13.17 | -1.21 | ---- | -3.44 | -0.20 | 3.24 | ||
| 2091 | 14.28 | 13.16 | -1.12 | ---- | -3.48 | -0.20 | 3.28 | ||
| 2092 | 14.20 | 13.16 | -1.05 | ---- | -3.53 | -0.20 | 3.33 | ||
| 2093 | 14.13 | 13.15 | -0.98 | ---- | -3.58 | -0.21 | 3.37 | ||
| 2094 | 14.07 | 13.15 | -0.92 | ---- | -3.63 | -0.21 | 3.42 | ||
| 2095 | 14.02 | 13.15 | -0.87 | ---- | -3.68 | -0.21 | 3.47 | ||
| 2096 | 13.97 | 13.14 | -0.83 | ---- | -3.73 | -0.21 | 3.52 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2021-2095 | 15.95% | 13.70% | -2.25% | 2034 | -1.36% | -0.08% | 1.29% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
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Based on Intermediate Assumptions of the 2021 Trustees Report.