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1994-96 Advisory Council Report

 
 Table 26s  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 2026
            -----------------------------------------------------------------------------------------
                              Single Male Worker                           Single Female Worker
               (TF
               Real      Low      Ave     High      Max               Low      Ave     High      Max
 Package       Int)     Erns     Erns     Erns     Erns              Erns     Erns     Erns     Erns
 
 Present Law   (2.3)    45656    75361    99584   119754             52866    87271   115300   138662
 PL PAYGO      (2.3)    45656    75361    99584   119754             52866    87271   115300   138662
 5% PSA-All Tax(2.3)    54630    88749   124924   171072             59979    94088   130805   177210
 5% PSA-Hi Yld (2.3)    67014   116269   168955   237024             72800   122580   176392   245491
 1.6% IA-Hi Yld(2.3)    47591    80102   110763   114375             53508    89120   122375   158304
 MB+           (4.6)    58357    96309   127301   153070             67609   111590   147474   177337
 MB-PAYGO      (4.2)    45634    75312    99548   119698             52838    87209   115254   138592
 MTR           (2.3)    35320    52832    67132    79023             41012    61352    77946    91757
 LTR           (2.3)    30699    35568    39834    43620             35375    39412    43323    46174
 
            Present Value of Expected Pyrl Tax (EE + ER)               Cohort 22 in 2026
            -----------------------------------------------------------------------------------------
                              Single Male Worker                           Single Female Worker
 
                         Low      Ave     High      Max               Low      Ave     High      Max
                        Erns     Erns     Erns     Erns              Erns     Erns     Erns     Erns
 
 Present Law   (2.3)    40268    89486   143178   214460             41748    92756   148438   222342
 PL PAYGO      (2.3)    52338   116308   186094   278744             54308   120686   193098   289236
 5% PSA-All Tax(2.3)    42742    94982   151970   227632             44244    98322   157314   235636
 5% PSA-Hi Yld (2.3)    45204   100456   160728   240748             46866   104146   166634   249596
 1.6% IA-Hi Yld(2.3)    45464   101032   161652   242132             47136   104746   167592   251030
 MB+           (4.6)    45204   100456   160728   240748             46866   104146   166634   249596
 MB-PAYGO      (4.2)    45130    10028   160466   240356             46898   104218   166748   249768
 MTR           (2.3)    40268    89486   143178   214460             41748    92756   148438   222342
 LTR           (2.3)    28968    64372   102996   154272             30032    66738   106780   159942
 
            Present Value of Expected "Net Subsidy"                    Cohort 22 in 2026
            -----------------------------------------------------------------------------------------
                              Single Male Worker                           Single Female Worker
 
                         Low      Ave     High      Max               Low      Ave     High      Max
                        Erns     Erns     Erns     Erns              Erns     Erns     Erns     Erns
 
 Present Law   (2.3)     5388   -14125   -43594   -94706             11118    -5485   -33138   -83680
 PL PAYGO      (2.3)    -6682   -40947   -86510  -158990             -1442   -33415   -77798  -150574
 5% PSA-All Tax(2.3)    11888    -6233   -27046   -56560             15735    -4234   -26509   -58426
 5% PSA-Hi Yld (2.3)    21810    15813     8227    -3724             25934    18434     9758    -4105
 1.6% IA-Hi Yld(2.3)     2127   -20930   -50889  -127757              6372   -15626   -45217   -92726
 MB+           (4.6)    13153    -4147   -33427   -87678             20743     7444   -19160   -72259
 MB-PAYGO      (4.2)      504    65284   -60918  -120658              5940   -17009   -51494  -111176
 MTR           (2.3)    -4948   -36654   -76046  -135437              -736   -31404   -70492  -130585
 LTR           (2.3)     1731   -28804   -63162  -110652              5343   -27326   -63457  -113768
 
            Moneys Worth Ratio (BenefitsX100/Taxes)                    Cohort 22 in 2026
            -----------------------------------------------------------------------------------------
                              Single Male Worker                           Single Female Worker
 
                         Low      Ave     High      Max               Low      Ave     High      Max
                        Erns     Erns     Erns     Erns              Erns     Erns     Erns     Erns
 
 Present Law   (2.3)      113       84       70       56               127       94       78       62
 PL PAYGO      (2.3)       87       65       54       43                97       72       60       48
 5% PSA-All Tax(2.3)      128       93       82       75               136       96       83       75
 5% PSA-Hi Yld (2.3)      148      116      105       98               155      118      106       98
 1.6% IA-Hi Yld(2.3)      105       79       69       47               114       85       73       63
 MB+           (4.6)      129       96       79       64               144      107       89       71
 MB-PAYGO      (4.2)      101      751       62       50               113       84       69       55
 MTR           (2.3)       88       59       47       37                98       66       53       41
 LTR           (2.3)      106       55       39       28               118       59       41       29
 
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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