Plan 3-V--1-Earner Couple with Equal Earnings
Full Annuitization of Personal Account Assets With a Variable Annuity Invested as Before Retirement
Index PIAby 0.995%
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
0.2
0.2
0.2
-0.9
-0.9
-0.9
-1.0
-1.0
-1.0
-1.2
-1.2
-1.2
% for PA Annuity**
2.1
2.7
2.8
2.8
3.7
3.8
3.1
4.0
4.2
3.3
4.3
4.5
% for Benefit Offset
-1.5
-1.5
-1.5
-2.0
-2.0
-2.0
-2.1
-2.1
-2.1
-1.7
-1.7
-1.7
Proposed Benefit
$1,088
$1,094
$1,096
$1,781
$1,796
$1,798
$2,354
$2,375
$2,380
$2,804
$2,831
$2,836
% of Present Law
Scheduled Benefit
100.9
101.5
101.6
100.0
100.9
101.0
100.1
101.0
101.1
100.4
101.4
101.5
% of Present Law
Payable Benefit
100.9
101.5
101.6
100.0
100.9
101.0
100.1
101.0
101.1
100.4
101.4
101.5
% of 2001
Real Benefit
113.8
114.5
114.7
112.8
113.8
114.0
114.9
115.9
116.1
121.5
122.7
122.9
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
2.1
2.1
2.1
-8.0
-8.0
-8.0
-9.2
-9.2
-9.2
-11.9
-11.9
-11.9
% for PA Annuity**
6.2
9.1
9.7
8.4
12.2
13.0
8.2
11.9
12.7
8.2
11.8
12.5
% for Benefit Offset
-4.3
-4.3
-4.3
-5.8
-5.8
-5.8
-5.1
-5.1
-5.1
-4.3
-4.3
-4.3
Proposed Benefit
$1,186
$1,219
$1,225
$1,781
$1,853
$1,868
$2,335
$2,426
$2,445
$2,767
$2,875
$2,897
% of Present Law
Scheduled Benefit
104.1
106.9
107.5
94.6
98.5
99.3
93.9
97.6
98.3
92.0
95.6
96.3
% of Present Law
Payable Benefit
104.1
106.9
107.5
94.6
98.5
99.3
93.9
97.6
98.3
92.0
95.6
96.3
% of 2001
Real Benefit
124.2
127.6
128.3
112.9
117.4
118.4
114.0
118.4
119.3
120.0
124.6
125.6
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
-3.9
-3.9
-3.9
-13.5
-13.5
-13.5
-15.5
-15.5
-15.5
-20.2
-20.2
-20.2
% for PA Annuity**
11.3
18.5
20.1
15.3
24.9
27.0
14.6
23.6
25.6
14.2
22.8
24.7
% for Benefit Offset
-7.7
-7.7
-7.7
-10.3
-10.3
-10.3
-8.8
-8.8
-8.8
-7.3
-7.3
-7.3
Proposed Benefit
$1,201
$1,287
$1,306
$1,818
$2,010
$2,052
$2,369
$2,606
$2,658
$2,760
$3,036
$3,097
% of Present Law
Scheduled Benefit
99.7
106.9
108.5
91.5
101.1
103.2
90.2
99.2
101.2
86.6
95.3
97.2
% of Present Law
Payable Benefit
99.7
106.9
108.5
91.5
101.1
103.2
90.2
99.2
101.2
86.6
95.3
97.2
% of 2001
Real Benefit
125.7
134.7
136.7
115.2
127.4
130.1
115.6
127.2
129.7
119.6
131.6
134.2
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
-8.6
-8.6
-8.6
-17.7
-17.7
-17.7
-19.7
-19.7
-19.7
-24.1
-24.1
-24.1
% for PA Annuity**
16.0
29.0
32.1
21.5
39.0
43.2
21.0
38.2
42.3
20.7
37.7
41.7
% for Benefit Offset
-10.7
-10.7
-10.7
-14.4
-14.4
-14.4
-12.7
-12.7
-12.7
-10.5
-10.5
-10.5
Proposed Benefit
$1,282
$1,454
$1,495
$1,957
$2,340
$2,432
$2,563
$3,059
$3,178
$3,015
$3,608
$3,751
% of Present Law
Scheduled Benefit
96.6
109.6
112.7
89.4
106.9
111.1
88.6
105.8
109.9
86.1
103.0
107.1
% of Present Law
Payable Benefit
132.2
150.0
154.2
122.3
146.2
152.0
121.2
144.6
150.3
117.8
140.9
146.5
% of 2001
Real Benefit
134.1
152.2
156.5
124.0
148.3
154.1
125.1
149.3
155.1
130.7
156.4
162.6
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
-13.1
-13.1
-13.1
-21.7
-21.7
-21.7
-23.6
-23.6
-23.6
-27.8
-27.8
-27.8
% for PA Annuity**
17.7
33.6
37.6
23.8
45.3
50.6
23.9
45.9
51.3
24.2
46.8
52.5
% for Benefit Offset
-11.8
-11.8
-11.8
-15.9
-15.9
-15.9
-14.6
-14.6
-14.6
-12.2
-12.2
-12.2
Proposed Benefit
$1,355
$1,588
$1,645
$2,078
$2,596
$2,724
$2,729
$3,430
$3,604
$3,245
$4,119
$4,337
% of Present Law
Scheduled Benefit
92.8
108.7
112.7
86.2
107.7
113.0
85.7
107.7
113.1
84.1
106.8
112.5
% of Present Law
Payable Benefit
128.2
150.2
155.6
119.1
148.8
156.1
118.3
148.7
156.3
116.2
147.5
155.4
% of 2001
Real Benefit
141.8
166.2
172.2
131.7
164.5
172.6
133.2
167.4
175.9
140.7
178.5
188.0
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
-22.2
-22.2
-22.2
-29.9
-29.9
-29.9
-31.6
-31.6
-31.6
-35.4
-35.4
-35.4
% for PA Annuity**
17.1
32.7
36.6
23.0
44.0
49.2
23.1
44.6
50.0
23.3
45.5
51.1
% for Benefit Offset
-11.4
-11.4
-11.4
-15.3
-15.3
-15.3
-14.1
-14.1
-14.1
-11.8
-11.8
-11.8
Proposed Benefit
$1,522
$1,807
$1,878
$2,340
$2,973
$3,129
$3,077
$3,933
$4,146
$3,668
$4,736
$5,003
% of Present Law
Scheduled Benefit
83.5
99.2
103.0
77.8
98.8
104.0
77.4
98.9
104.3
76.2
98.4
104.0
% of Present Law
Payable Benefit
124.6
147.9
153.7
116.0
147.4
155.2
115.5
147.6
155.6
113.7
146.8
155.1
% of 2001
Real Benefit
159.3
189.1
196.5
148.3
188.4
198.3
150.2
192.0
202.4
159.0
205.3
216.9
* 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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