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1994-96 Advisory Council Report

 
 Table 95   Comparison of "Moneys Worth" for the OASDI Program for Present Law and
  StdVal       Advisory Council Options With Reduced CPI*
  NoTaxAdj
            Present Value of Expected Benefits                    Cohort 22 in 1995
            --------------------------------------------------------------------------------------------------
                          Composite Workers                           Married, Two Earner Couples
               (TF      -----------------------------------------    -----------------------------------------
               Real      Low      Ave     High      Max              Low/     Ave/     Ave/     High/    High/
 Package       Int)     Erns     Erns     Erns     Erns    Total      Low      Low      Ave      Ave      High
 
 Present Law   (2.3)    69404   118592   151829   169586   115469    80822   117495   133847   165105   176939
 PL PAYGO      (2.3)    69404   118592   151829   169586   115469    80822   117495   133847   165105   176939
 5% PSA-All Tax(2.3)    91853   146616   185605   197376   143138   111827   144427   173338   206030   237157
 5% PSA-Hi Yld (2.3)   106591   178885   233643   253721   175575   129949   173642   213610   258404   301591
 1.6% IA-Hi Yld(2.3)    81292   138162   169791   183236   132067    98963   134006   164508   188592   207621
 MB+           (4.6)    85078   145169   186168   208406   141508    98871   143626   163743   202241   216508
 MB-PAYGO      (4.2)    69375   118525   151775   169489   115413    80788   117430   133772   165043   176885
 MTR           (2.3)    66193   105072   120507   126068    98847    80400   104014   123257   134873   141619
 LTR           (2.3)    60487    77912    83309    78265    74137    73260    82202    87633    94517   100029
 
            Present Value of Expected Pyrl Tax (EE + ER)               Cohort 22 in 1995
            --------------------------------------------------------------------------------------------------
                          Composite Workers                           Married, Two Earner Couples
                        -----------------------------------------    ------------------------------------------
                         Low      Ave     High      Max              Low/     Ave/     Ave/     High/    High/
                        Erns     Erns     Erns     Erns    Total      Low      Low      Ave      Ave      High
 
 Present Law   (2.3)    57294   124307   185503   218486   125305    69646   111394   154770   200314   247632
 PL PAYGO      (2.3)    60441   131110   195631   230255   132147    73476   117462   163280   211264   261246
 5% PSA-All Tax(2.3)    67245   145897   217723   256330   147062    81742   130742   181650   235106   290640
 5% PSA-Hi Yld (2.3)    63540   137856   205719   242225   138957    77240   123530   171646   222146   274636
 1.6% IA-Hi Yld(2.3)    63871   138571   206782   243474   139677    77642   124172   172536   223294   276056
 MB+           (4.6)    63540   137856   205719   242225   138957    77240   123530   171646   222146   274636
 MB-PAYGO      (4.2)    57294   124307   185503   218486   125305    69646   111394   154770   200314   247632
 MTR           (2.3)    57294   124307   185503   218486   125305    69646   111394   154770   200314   247632
 LTR           (2.3)    42991    93286   139220   164136    94049    52258    83608   116130   150330   185810
 
            Present Value of Expected "Net Subsidy"                    Cohort 22 in 1995
            --------------------------------------------------------------------------------------------------
                          Composite Workers                           Married, Two Earner Couples
                        -----------------------------------------    ------------------------------------------
                         Low      Ave     High      Max              Low/     Ave/     Ave/     High/    High/
                        Erns     Erns     Erns     Erns    Total      Low      Low      Ave      Ave      High
 
 Present Law   (2.3)    12110    -5715   -33674   -48900    -9836    11176     6101   -20923   -35209   -70693
 PL PAYGO      (2.3)     8963   -12518   -43801   -60668   -16678     7346       33   -29433   -46159   -84307
 5% PSA-All Tax(2.3)    24608      718   -32117   -58954    -3924    30085    13685    -8312   -29076   -53483
 5% PSA-Hi Yld (2.3)    43051    41029    27924    11496    36618    52709    50112    41964    36258    26955
 1.6% IA-Hi Yld(2.3)    17421     -409   -36990   -60239    -7610    21321     9834    -8028   -34702   -68435
 MB+           (4.6)    21537     7314   -19551   -33819     2550    21631    20096    -7903   -19905   -58128
 MB-PAYGO      (4.2)    12081    -5783   -33728   -48997    -9892    11142     6036   -20998   -35271   -70747
 MTR           (2.3)     8899   -19236   -64996   -92418   -26458    10754    -7380   -31513   -65441  -106013
 LTR           (2.3)    17496   -15375   -55911   -85871   -19912    21002    -1406   -28497   -55813   -85781
 
            Moneys Worth Ratio (BenefitsX100/Taxes)                    Cohort 22 in 1995
            --------------------------------------------------------------------------------------------------
                          Composite Workers                           Married, Two Earner Couples
                        -----------------------------------------    ------------------------------------------
                         Low      Ave     High      Max              Low/     Ave/     Ave/     High/    High/
                        Erns     Erns     Erns     Erns    Total      Low      Low      Ave      Ave      High
 
 Present Law   (2.3)      121       95       82       78       92      116      105       86       82       71
 PL PAYGO      (2.3)      115       90       78       74       87      110      100       82       78       68
 5% PSA-All Tax(2.3)      137      100       85       77       97      137      110       95       88       82
 5% PSA-Hi Yld (2.3)      168      130      114      105      126      168      141      124      116      110
 1.6% IA-Hi Yld(2.3)      127      100       82       75       95      127      108       95       84       75
 MB+           (4.6)      134      105       90       86      102      128      116       95       91       79
 MB-PAYGO      (4.2)      121       95       82       78       92      116      105       86       82       71
 MTR           (2.3)      116       85       65       58       79      115       93       80       67       57
 LTR           (2.3)      141       84       60       48       79      140       98       75       63       54
    
Note: All values based in intermediate assumptions of the 1995 Trustees Report*. All dollar values are present value at age 22, then wage indexed to 1995. * Assuming 0.21% lower COLA starting Dec 97; no change in nominal wage or interest. Office of the Actuary / Social Security Administration July 28, 1996
 
 
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