Plan 2--2-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
$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
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**
3.6
4.0
4.0
4.2
4.7
4.7
3.2
3.6
3.6
2.7
3.0
3.0
% for Benefit Offset
-3.2
-3.2
-3.2
-3.8
-3.8
-3.8
-2.9
-2.9
-2.9
-2.4
-2.4
-2.4
Proposed Benefit
$734
$737
$738
$1,188
$1,194
$1,194
$1,568
$1,574
$1,575
$1,861
$1,867
$1,867
% of Present Law
Scheduled Benefit
101.5
101.9
102.0
99.5
100.0
100.0
99.4
99.8
99.8
99.3
99.6
99.7
% of Present Law
Payable Benefit
101.5
101.9
102.0
99.5
100.0
100.0
99.4
99.8
99.8
99.3
99.6
99.7
% of 2001
Real Benefit
115.3
115.7
115.8
112.9
113.5
113.5
114.8
115.2
115.3
121.0
121.4
121.4
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
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**
10.6
13.3
13.7
10.5
13.0
13.4
8.0
9.8
10.1
6.6
8.1
8.4
% for Benefit Offset
-9.2
-9.2
-9.2
-9.1
-9.1
-9.1
-6.9
-6.9
-6.9
-5.7
-5.7
-5.7
Proposed Benefit
$848
$868
$872
$1,158
$1,189
$1,194
$1,525
$1,556
$1,561
$1,841
$1,872
$1,877
% of Present Law
Scheduled Benefit
110.6
113.2
113.7
91.5
93.9
94.3
91.1
93.0
93.3
91.0
92.5
92.8
% of Present Law
Payable Benefit
110.6
113.2
113.7
91.5
93.9
94.3
91.1
93.0
93.3
91.0
92.5
92.8
% of 2001
Real Benefit
133.1
136.3
136.8
110.1
113.0
113.5
111.6
113.9
114.3
119.7
121.7
122.1
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
-0.9
-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**
19.2
26.8
28.2
18.2
25.1
26.3
13.8
19.0
20.0
11.4
15.7
16.5
% for Benefit Offset
-16.0
-16.0
-16.0
-15.2
-15.2
-15.2
-11.6
-11.6
-11.6
-9.5
-9.5
-9.5
Proposed Benefit
$832
$894
$905
$1,138
$1,231
$1,248
$1,491
$1,584
$1,601
$1,800
$1,892
$1,910
% of Present Law
Scheduled Benefit
102.3
109.9
111.3
84.8
91.7
93.0
84.1
89.3
90.3
83.7
88.0
88.8
% of Present Law
Payable Benefit
102.3
109.9
111.3
84.8
91.7
93.0
84.1
89.3
90.3
83.7
88.0
88.8
% of 2001
Real Benefit
130.6
140.3
142.1
108.2
117.0
118.6
109.2
116.0
117.2
117.0
123.0
124.2
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
-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**
27.1
41.9
44.9
26.6
41.2
44.2
20.1
31.2
33.5
16.6
25.8
27.7
% for Benefit Offset
-21.8
-21.8
-21.8
-21.4
-21.4
-21.4
-16.2
-16.2
-16.2
-13.4
-13.4
-13.4
Proposed Benefit
$853
$986
$1,014
$1,175
$1,392
$1,437
$1,528
$1,745
$1,790
$1,834
$2,051
$2,096
% of Present Law
Scheduled Benefit
95.3
110.1
113.2
79.5
94.1
97.2
78.2
89.3
91.6
77.6
86.7
88.6
% of Present Law
Payable Benefit
130.3
150.6
154.8
108.7
128.8
132.9
107.0
122.2
125.3
106.1
118.6
121.2
% of 2001
Real Benefit
134.0
154.8
159.1
111.7
132.3
136.6
111.9
127.8
131.0
119.3
133.4
136.3
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
-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**
29.9
48.5
52.5
30.6
50.3
54.6
24.0
40.0
43.6
19.4
32.0
34.7
% for Benefit Offset
-23.7
-23.7
-23.7
-24.1
-24.1
-24.1
-18.9
-18.9
-18.9
-15.3
-15.3
-15.3
Proposed Benefit
$867
$1,050
$1,090
$1,204
$1,525
$1,595
$1,563
$1,907
$1,983
$1,865
$2,193
$2,264
% of Present Law
Scheduled Benefit
88.0
106.5
110.5
73.9
93.7
98.0
72.6
88.7
92.2
71.6
84.2
86.9
% of Present Law
Payable Benefit
121.5
147.2
152.6
102.1
129.4
135.3
100.4
122.5
127.3
98.9
116.3
120.1
% of 2001
Real Benefit
136.2
164.9
171.1
114.4
145.0
151.6
114.4
139.6
145.1
121.2
142.6
147.2
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
-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**
28.9
46.9
50.8
29.6
48.7
52.8
23.2
38.7
42.1
18.7
30.9
33.6
% for Benefit Offset
-22.9
-22.9
-22.9
-23.3
-23.3
-23.3
-18.2
-18.2
-18.2
-14.7
-14.7
-14.7
Proposed Benefit
$881
$1,102
$1,150
$1,227
$1,615
$1,700
$1,587
$2,003
$2,095
$1,888
$2,284
$2,371
% of Present Law
Scheduled Benefit
71.6
89.6
93.4
60.4
79.5
83.7
59.1
74.6
78.0
58.1
70.3
72.9
% of Present Law
Payable Benefit
106.8
133.6
139.3
90.1
118.6
124.8
88.2
111.3
116.4
86.7
104.9
108.8
% of 2001
Real Benefit
138.3
173.1
180.5
116.6
153.6
161.6
116.2
146.7
153.3
122.7
148.5
154.1
* 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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