Plan 1-V--2-Earner Couple with Equal Earnings
Full Annuitization of Personal Account Assets With a Variable Annuity Invested as Before Retirement
No Basic
Benefit
Changes
PA Portfolio/Yield*
Scaled LOW Earner
($15,875 in 2002)
Scaled MEDIUM Earner
($35,277 in 2002)
Scaled HIGH Earner
($56,443 in 2002)
Scaled MAXIMUM Earner
($84,900 in 2002)
Low
Yield
50%
Equity
High
Yield
Low
Yield
50%
Equity
High
Yield
Low
Yield
50%
Equity
High
Yield
Low
Yield
50%
Equity
High
Yield
 
(Billions of Constant 2001 Dollars)
2012 Retiree
Present Law
Scheduled Benefit
$723
$723
$723
$1,194
$1,194
$1,194
$1,578
$1,578
$1,578
$1,873
$1,873
$1,873
% Basic Change for All
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
% for PA Annuity**
1.8
2.3
2.4
2.4
3.1
3.3
2.9
3.8
3.9
4.6
5.9
6.1
% for Benefit Offset
-2.0
-2.0
-2.0
-2.7
-2.7
-2.7
-3.3
-3.3
-3.3
-5.1
-5.1
-5.1
Proposed Benefit
$722
$725
$726
$1,191
$1,199
$1,201
$1,572
$1,586
$1,589
$1,863
$1,888
$1,893
% of Present Law
Scheduled Benefit
99.8
100.3
100.4
99.7
100.4
100.6
99.7
100.5
100.7
99.5
100.8
101.1
% of Present Law
Payable Benefit
99.8
100.3
100.4
99.7
100.4
100.6
99.7
100.5
100.7
99.5
100.8
101.1
% of 2001
Real Benefit
113.3
113.9
114.0
113.2
114.0
114.2
115.1
116.1
116.3
121.1
122.8
123.1
2022 Retiree
Present Law
Scheduled Benefit
$767
$767
$767
$1,266
$1,266
$1,266
$1,673
$1,673
$1,673
$2,024
$2,024
$2,024
% Basic Change for All
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
% for PA Annuity**
5.3
7.7
8.2
7.1
10.4
11.1
8.6
12.6
13.4
11.2
16.0
17.0
% for Benefit Offset
-6.2
-6.2
-6.2
-8.4
-8.4
-8.4
-10.1
-10.1
-10.1
-13.0
-13.0
-13.0
Proposed Benefit
$760
$778
$782
$1,250
$1,292
$1,300
$1,648
$1,714
$1,728
$1,986
$2,085
$2,105
% of Present Law
Scheduled Benefit
99.1
101.5
102.0
98.8
102.0
102.7
98.5
102.4
103.3
98.1
103.0
104.0
% of Present Law
Payable Benefit
99.1
101.5
102.0
98.8
102.0
102.7
98.5
102.4
103.3
98.1
103.0
104.0
% of 2001
Real Benefit
119.3
122.2
122.8
118.9
122.8
123.6
120.6
125.5
126.5
129.1
135.6
136.9
2032 Retiree
Present Law
Scheduled Benefit
$813
$813
$813
$1,343
$1,343
$1,343
$1,774
$1,774
$1,774
$2,151
$2,151
$2,151
% Basic Change for All
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
% for PA Annuity**
9.6
15.6
17.0
12.9
21.0
22.9
15.6
25.5
27.7
19.3
31.0
33.6
% for Benefit Offset
-11.8
-11.8
-11.8
-15.9
-15.9
-15.9
-19.2
-19.2
-19.2
-23.6
-23.6
-23.6
Proposed Benefit
$795
$845
$855
$1,303
$1,412
$1,436
$1,710
$1,885
$1,924
$2,059
$2,312
$2,368
% of Present Law
Scheduled Benefit
97.8
103.8
105.2
97.0
105.2
107.0
96.4
106.3
108.5
95.7
107.5
110.1
% of Present Law
Payable Benefit
97.8
103.8
105.2
97.0
105.2
107.0
96.4
106.3
108.5
95.7
107.5
110.1
% of 2001
Real Benefit
124.9
132.6
134.3
123.8
134.2
136.5
125.2
138.0
140.9
133.8
150.3
153.9
2042 Retiree
Present Law
Scheduled Benefit
$896
$896
$896
$1,478
$1,478
$1,478
$1,953
$1,953
$1,953
$2,365
$2,365
$2,365
% Basic Change for All
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
% for PA Annuity**
13.5
24.5
27.2
18.2
33.0
36.6
22.1
40.0
44.3
28.2
51.2
56.7
% for Benefit Offset
-17.4
-17.4
-17.4
-23.4
-23.4
-23.4
-28.3
-28.3
-28.3
-36.2
-36.2
-36.2
Proposed Benefit
$861
$960
$983
$1,402
$1,621
$1,673
$1,831
$2,181
$2,265
$2,175
$2,720
$2,851
% of Present Law
Scheduled Benefit
96.2
107.2
109.8
94.8
109.6
113.2
93.7
111.7
116.0
92.0
115.0
120.5
% of Present Law
Payable Benefit
131.5
146.6
150.2
129.7
150.0
154.8
128.2
152.7
158.6
125.8
157.3
164.9
% of 2001
Real Benefit
135.2
150.7
154.4
133.3
154.1
159.1
134.0
159.7
165.8
141.4
176.9
185.3
2052 Retiree
Present Law
Scheduled Benefit
$986
$986
$986
$1,628
$1,628
$1,628
$2,151
$2,151
$2,151
$2,604
$2,604
$2,604
% Basic Change for All
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
% for PA Annuity**
15.0
28.5
31.8
20.1
38.3
42.8
24.4
46.4
51.8
32.8
63.7
71.4
% for Benefit Offset
-19.6
-19.6
-19.6
-26.4
-26.4
-26.4
-31.9
-31.9
-31.9
-43.3
-43.3
-43.3
Proposed Benefit
$940
$1,074
$1,106
$1,526
$1,822
$1,895
$1,989
$2,462
$2,579
$2,332
$3,134
$3,335
% of Present Law
Scheduled Benefit
95.4
108.9
112.2
93.8
112.0
116.4
92.5
114.5
119.9
89.5
120.3
128.0
% of Present Law
Payable Benefit
131.7
150.4
155.0
129.5
154.6
160.8
127.7
158.1
165.6
123.7
166.2
176.9
% of 2001
Real Benefit
147.6
168.6
173.7
145.1
173.2
180.2
145.6
180.3
188.8
151.6
203.8
216.8
2075 Retiree
Present Law
Scheduled Benefit
$1,231
$1,231
$1,231
$2,032
$2,032
$2,032
$2,685
$2,685
$2,685
$3,250
$3,250
$3,250
% Basic Change for All
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
% for PA Annuity**
14.5
27.7
31.0
19.5
37.3
41.7
23.6
45.1
50.5
31.7
61.9
69.5
% for Benefit Offset
-19.0
-19.0
-19.0
-25.6
-25.6
-25.6
-30.9
-30.9
-30.9
-42.0
-42.0
-42.0
Proposed Benefit
$1,175
$1,338
$1,378
$1,908
$2,270
$2,359
$2,486
$3,065
$3,208
$2,917
$3,898
$4,143
% of Present Law
Scheduled Benefit
95.5
108.7
112.0
93.9
111.7
116.1
92.6
114.2
119.5
89.8
119.9
127.5
% of Present Law
Payable Benefit
142.4
162.2
167.0
140.1
166.7
173.2
138.2
170.3
178.3
133.9
178.9
190.2
% of 2001
Real Benefit
184.5
210.0
216.4
181.4
215.8
224.3
182.0
224.4
234.9
189.7
253.4
269.4
* Low Yield assumes the Treasury Bond yield on all assets, or risk adjusted returns. High Yield reflects a higher 7.1% ultimate real yield on equities, OR investing 60% of PA in equities at the assumed 6.5% yield.
** Annuity is assumed to have a net real yield equal to Long-Term Treasury Bonds, except for 100% Treasury case, where gross annuity yield is equal to Treasury.

Note: Based on 2001 Trustees Intermediate assumptions, including 3.0% Treasury ultimate real yield; plus 6.5% equity, 3.5% corporate bond ultimate real yields, and 0.3% annual ultimate PA and annuity administrative cost. For portfolios with part equity, balance is assumed 60% corporate and 40% Treasury bonds.
Office of the Actuary
Social Security Administration
January 29, 2002

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