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1994-96 Advisory Council Report

 
Table 3As.
StdVal
NoTaxAdj		 Comparison of Moneys Worth Ratios* for Proposals Considered Advisory Council Options With Reduced CPI*
                     
  Ratio of Benefits to Taxes (in present value) for Single Steady Earners
                     
    AGE 22 IN 1971
    Single Male Worker   Single Female Worker
    ----------------------------   ----------------------------
Package (TF
Int)		 Low
Erns		 Ave
Erns		 High
Erns		 Max
Erns		   Low
Erns		 Ave
Erns		 High
Erns		 Max
Erns
Present Law (2.3) 79 59 49 43   92 69 58 50
5% PSA-401K (2.3) 79 57 48 43   90 64 54 48
5% PSA-USBond (2.3) 77 56 47 41   89 63 53 46
1.6% IA-401KAn (2.3) 73 54 46 40   85 63 53 46
1.6% IA-USBond (2.3) 73 54 45 39   84 62 52 46
MB (4.2) 79 59 49 43   92 69 58 50
MTR (2.3) 72 53 44 38   84 61 51 44
LTR (2.3) 76 52 43 36   88 60 49 41
                     
    AGE 22 IN 1995
    Single Male Worker   Single Female Worker
    ---------------------------   ---------------------------
  (TF
Int)		 Low
Erns		 Ave
Erns		 High
Erns		 Max
Erns		   Low
Erns		 Ave
Erns		 High
Erns		 Max
Erns
Present Law (2.3) 103 77 63 51   117 87 72 58
PL PAYGO (2.3) 98 73 60 48   111 82 68 55
5% PSA-401K (2.3) 116 84 73 66   125 87 75 67
5% PSA-USBond (2.3) 102 70 59 52   111 73 61 53
1.6% IA-401KAn (2.3) 95 70 59 50   105 77 65 54
1.6% IA-USBond (2.3) 88 64 53 44   99 71 58 48
MB (4.2) 103 77 63 51   117 87 72 58
MTR (2.3) 86 59 47 37   98 67 53 42
LTR (2.3) 104 57 41 30   117 62 44 32
                     
    AGE 22 IN 2019
    Single Male Worker   Single Female Worker
    ---------------------------   ---------------------------
  (TF Int) Low Erns Ave Erns High Erns Max Erns   Low Erns Ave Erns High Erns Max Erns
Present Law (2.3) 112 83 69 55   125 93 77 62
PL PAYGO (2.3) 91 67 56 45   101 75 62 50
5% PSA-401K (2.3) 121 88 78 71   129 91 79 71
5% PSA-USBond (2.3) 104 71 61 54   112 74 62 54
1.6% IA-401KAn (2.3) 98 73 62 53   108 79 67 57
1.6% IA-USBond (2.3) 90 65 54 45   100 71 59 49
MB (4.2) 110 81 67 54   123 91 75 60
MTR (2.3) 88 59 47 37   99 67 53 42
LTR (2.3) 107 56 39 28   119 60 41 29
                     
* The moneys worth ratio is the ratio of expected benefits to expected employee plus employer taxes, both in present value.
* Assuming 0.21% lower COLA starting Dec 97; no change in nominal wage or interest.
All values based in intermediate assumptions of the 1995 Trustees Report*.
                     
Office of the Actuary/Social Security Administration
July 28, 1996

NOTE: Tables 3A, 3As, and 3Am provide comparisons of "money's worth" ratios derived from contributions and benefits from both the OASDI program and the individual accounts under the various plans. Backup information may be obtained by selection of the following : 

 
 
 
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