Plan 2--1-Earner Couple with Equal Earnings
Full Annuitization of Personal Account Assets at Retirement With a CPI-Indexed Life Annuity on a Joint and 2/3 Survivor Basis
CPI Indexed PIA
Starting in 2009
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
$1,078
$1,078
$1,078
$1,780
$1,780
$1,780
$2,353
$2,353
$2,353
$2,793
$2,793
$2,793
% Basic Change for All
1.2
1.2
1.2
-0.9
-0.9
-0.9
-0.9
-0.9
-0.9
-0.9
-0.9
-0.9
% for PA Annuity**
2.4
2.7
2.7
2.8
3.1
3.2
2.1
2.4
2.4
1.8
2.0
2.0
% for Benefit Offset
-2.2
-2.2
-2.2
-2.5
-2.5
-2.5
-1.9
-1.9
-1.9
-1.6
-1.6
-1.6
Proposed Benefit
$1,093
$1,097
$1,097
$1,769
$1,775
$1,775
$2,336
$2,342
$2,342
$2,772
$2,778
$2,779
% of Present Law
Scheduled Benefit
101.4
101.7
101.7
99.4
99.7
99.7
99.3
99.5
99.6
99.3
99.5
99.5
% of Present Law
Payable Benefit
101.4
101.7
101.7
99.4
99.7
99.7
99.3
99.5
99.6
99.3
99.5
99.5
% of 2001
Real Benefit
114.4
114.8
114.8
112.1
112.5
112.5
114.0
114.3
114.3
120.2
120.4
120.4
2022 Retiree
Present Law
Scheduled Benefit
$1,140
$1,140
$1,140
$1,881
$1,881
$1,881
$2,486
$2,486
$2,486
$3,008
$3,008
$3,008
% Basic Change for All
9.2
9.2
9.2
-9.9
-9.9
-9.9
-9.9
-9.9
-9.9
-9.9
-9.9
-9.9
% for PA Annuity**
7.1
8.9
9.2
7.1
8.7
9.0
5.4
6.6
6.8
4.4
5.5
5.6
% for Benefit Offset
-6.2
-6.2
-6.2
-6.2
-6.2
-6.2
-4.7
-4.7
-4.7
-3.9
-3.9
-3.9
Proposed Benefit
$1,255
$1,275
$1,279
$1,713
$1,744
$1,749
$2,258
$2,289
$2,294
$2,728
$2,759
$2,764
% of Present Law
Scheduled Benefit
110.1
111.9
112.2
91.0
92.7
93.0
90.8
92.1
92.3
90.7
91.7
91.9
% of Present Law
Payable Benefit
110.1
111.9
112.2
91.0
92.7
93.0
90.8
92.1
92.3
90.7
91.7
91.9
% of 2001
Real Benefit
131.3
133.5
133.8
108.5
110.5
110.8
110.2
111.7
112.0
118.2
119.6
119.8
2032 Retiree
Present Law
Scheduled Benefit
$1,204
$1,204
$1,204
$1,988
$1,988
$1,988
$2,627
$2,627
$2,627
$3,185
$3,185
$3,185
% Basic Change for All
-0.9
-0.9
-0.9
-18.2
-18.2
-18.2
-18.2
-18.2
-18.2
-18.2
-18.2
-18.2
% for PA Annuity**
13.0
18.1
19.0
12.3
16.9
17.8
9.3
12.8
13.5
7.7
10.6
11.1
% for Benefit Offset
-10.8
-10.8
-10.8
-10.3
-10.3
-10.3
-7.8
-7.8
-7.8
-6.4
-6.4
-6.4
Proposed Benefit
$1,220
$1,281
$1,293
$1,667
$1,759
$1,776
$2,189
$2,282
$2,299
$2,646
$2,739
$2,756
% of Present Law
Scheduled Benefit
101.3
106.4
107.4
83.8
88.5
89.3
83.3
86.9
87.5
83.1
86.0
86.5
% of Present Law
Payable Benefit
101.3
106.4
107.4
83.8
88.5
89.3
83.3
86.9
87.5
83.1
86.0
86.5
% of 2001
Real Benefit
127.6
134.1
135.3
105.6
111.5
112.6
106.9
111.4
112.2
114.7
118.7
119.5
2042 Retiree
Present Law
Scheduled Benefit
$1,326
$1,326
$1,326
$2,189
$2,189
$2,189
$2,893
$2,893
$2,893
$3,502
$3,502
$3,502
% Basic Change for All
-10.0
-10.0
-10.0
-25.7
-25.7
-25.7
-25.7
-25.7
-25.7
-25.7
-25.7
-25.7
% for PA Annuity**
18.3
28.3
30.4
17.9
27.8
29.9
13.6
21.1
22.6
11.2
17.4
18.7
% for Benefit Offset
-14.7
-14.7
-14.7
-14.4
-14.4
-14.4
-10.9
-10.9
-10.9
-9.0
-9.0
-9.0
Proposed Benefit
$1,241
$1,374
$1,401
$1,704
$1,920
$1,965
$2,226
$2,443
$2,488
$2,680
$2,896
$2,941
% of Present Law
Scheduled Benefit
93.6
103.6
105.7
77.8
87.7
89.8
77.0
84.5
86.0
76.5
82.7
84.0
% of Present Law
Payable Benefit
128.0
141.7
144.5
106.4
120.0
122.8
105.3
115.5
117.7
104.7
113.1
114.9
% of 2001
Real Benefit
129.9
143.8
146.7
108.0
121.7
124.5
108.7
119.2
121.4
116.2
125.5
127.5
2052 Retiree
Present Law
Scheduled Benefit
$1,460
$1,460
$1,460
$2,410
$2,410
$2,410
$3,185
$3,185
$3,185
$3,856
$3,856
$3,856
% Basic Change for All
-18.2
-18.2
-18.2
-32.5
-32.5
-32.5
-32.5
-32.5
-32.5
-32.5
-32.5
-32.5
% for PA Annuity**
20.2
32.7
35.4
20.7
34.0
36.9
16.2
27.0
29.4
13.1
21.6
23.4
% for Benefit Offset
-16.0
-16.0
-16.0
-16.3
-16.3
-16.3
-12.8
-12.8
-12.8
-10.3
-10.3
-10.3
Proposed Benefit
$1,255
$1,438
$1,477
$1,732
$2,053
$2,123
$2,261
$2,605
$2,681
$2,710
$3,038
$3,109
% of Present Law
Scheduled Benefit
85.9
98.5
101.2
71.9
85.2
88.1
71.0
81.8
84.2
70.3
78.8
80.6
% of Present Law
Payable Benefit
118.7
136.0
139.8
99.3
117.7
121.7
98.0
113.0
116.3
97.1
108.8
111.4
% of 2001
Real Benefit
131.3
150.5
154.6
109.8
130.1
134.6
110.3
127.1
130.8
117.5
131.7
134.8
2075 Retiree
Present Law
Scheduled Benefit
$1,823
$1,823
$1,823
$3,009
$3,009
$3,009
$3,975
$3,975
$3,975
$4,812
$4,812
$4,812
% Basic Change for All
-34.5
-34.5
-34.5
-45.9
-45.9
-45.9
-45.9
-45.9
-45.9
-45.9
-45.9
-45.9
% for PA Annuity**
19.5
31.7
34.3
20.0
32.9
35.7
15.7
26.2
28.5
12.6
20.9
22.7
% for Benefit Offset
-15.4
-15.4
-15.4
-15.7
-15.7
-15.7
-12.3
-12.3
-12.3
-9.9
-9.9
-9.9
Proposed Benefit
$1,269
$1,490
$1,537
$1,755
$2,144
$2,228
$2,285
$2,701
$2,793
$2,733
$3,130
$3,216
% of Present Law
Scheduled Benefit
69.6
81.8
84.4
58.3
71.3
74.1
57.5
68.0
70.3
56.8
65.0
66.8
% of Present Law
Payable Benefit
103.8
122.0
125.8
87.0
106.3
110.5
85.7
101.4
104.8
84.7
97.0
99.7
% of 2001
Real Benefit
132.8
155.9
160.9
111.2
135.9
141.2
111.5
131.9
136.3
118.5
135.7
139.4
* 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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