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1994-96 Advisory Council Report

 
 Table 71   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 1971
            --------------------------------------------------------------------------------------------------
                          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)    56465    94259   121515   133841    92677    62850    91342   103498   127591   135953
 5% PSA-401K   (2.3)    58744    94250   119011   125152    92149    66325    90646   105660   125383   139878
 5% PSA-USBond (2.3)    57947    92552   116479   122271    90433    65390    89149   103581   122692   136553
 1.6% IA-401KAn(2.3)    55292    91963   116761   123389    89592    62527    88834   102746   123362   135620
 1.6% IA-USBond(2.3)    55024    91393   115911   122418    89015    62213    88331   102049   122459   134505
 MB            (4.2)    56444    94201   121439   132601    92544    62827    91290   103431   127485   135909
 MTR           (2.3)    53433    88004   110858   116700    85591    60346    85343    97898   117086   127863
 LTR           (2.3)    53127    82288   101177   104999    80066    59732    80101    91007   106420   116434
 
            Present Value of Expected Pyrl Tax (EE + ER)               Cohort 22 in 1971
            --------------------------------------------------------------------------------------------------
                          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)    57124   121331   178793   188448   121053    66662   106764   148140   189788   232820
 5% PSA-401K   (2.3)    58591   124435   183422   193829   124202    68376   109486   151944   194692   238908
 5% PSA-USBond (2.3)    58591   124435   183422   193829   124202    68376   109486   151944   194692   238908
 1.6% IA-401KAn(2.3)    58668   124598   183665   194114   124367    68466   109628   152144   194950   239228
 1.6% IA-USBond(2.3)    58668   124598   183665   194114   124367    68466   109628   152144   194950   239228
 MB            (4.2)    57124   121331   178793   188448   121053    66662   106764   148140   189788   232820
 MTR           (2.3)    57124   121331   178793   188448   121053    66662   106764   148140   189788   232820
 LTR           (2.3)    53769   114224   168192   176125   113844    62744   100536   139428   178556   218882
 
            Present Value of Expected "Net Subsidy"                    Cohort 22 in 1971
            --------------------------------------------------------------------------------------------------
                          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)     -659   -27071   -57277   -54606   -28376    -3812   -15422   -44642   -62197   -96867
 5% PSA-401K   (2.3)      153   -30185   -64411   -68677   -32053    -2051   -18840   -46284   -69309   -99030
 5% PSA-USBond (2.3)     -644   -31883   -66943   -71558   -33769    -2986   -20337   -48363   -72000  -102355
 1.6% IA-401KAn(2.3)    -3376   -32635   -66904   -70725   -34776    -5939   -20794   -49398   -71588  -103608
 1.6% IA-USBond(2.3)    -3644   -33205   -67754   -71696   -35352    -6253   -21297   -50095   -72491  -104723
 MB            (4.2)     -680   -27130   -57354   -55847   -28509    -3835   -15474   -44709   -62303   -96911
 MTR           (2.3)    -3690   -33327   -67935   -71748   -35462    -6316   -21421   -50242   -72702  -104957
 LTR           (2.3)     -642   -31936   -67015   -71126   -33778    -3012   -20435   -48421   -72136  -102448
 
            Moneys Worth Ratio (BenefitsX100/Taxes)                    Cohort 22 in 1971
            --------------------------------------------------------------------------------------------------
                          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)       99       78       68       71       77       94       86       70       67       58
 5% PSA-401K   (2.3)      100       76       65       65       74       97       83       70       64       59
 5% PSA-USBond (2.3)       99       74       64       63       73       96       81       68       63       57
 1.6% IA-401KAn(2.3)       94       74       64       64       72       91       81       68       63       57
 1.6% IA-USBond(2.3)       94       73       63       63       72       91       81       67       63       56
 MB            (4.2)       99       78       68       70       76       94       86       70       67       58
 MTR           (2.3)       94       73       62       62       71       91       80       66       62       55
 LTR           (2.3)       99       72       60       60       70       95       80       65       60       53
    
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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