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1994-96 Advisory Council Report

 
Table 3A.
StdVal
NoTaxAdj
(continued)		 Comparison of "Moneys Worth" for the OASDI Program for Present Law and Advisory Council Options With Reduced CPI*
  Ratio of Benefits to Taxes (in present value) for Composite Workers and Married Couples with Two Earners
 
    AGE 22 IN 1971
    Composite Workers   Married, Two Earner Couples
    ----------------------------   ----------------------------
Package (TF
Int)		 Low
Erns		 Ave
Erns		 High
Erns		 Max
Erns		 Total   Low/
Low		 Ave/
Low		 Ave/
Ave		 High/
Ave		 High/
High
Present Law (2.3) 99 78 68 71 77   94 86 70 67 58
5% PSA-All Tax (2.3) 98 74 64 63 73   95 81 68 63 57
5% PSA-Hi Yld (2.3) 102 77 66 66 76   98 84 71 66 60
1.6% IA-Hi Yld (2.3) 94 74 64 64 72   92 81 68 63 57
MB+ (4.6) 103 81 71 73 79   98 89 72 70 61
MB-PAYGO (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
                         
    AGE 22 IN 1995
    Composite Workers   Married, Two Earner Couples
    ----------------------------   ----------------------------
  (TF
Int)		 Low
Erns		 Ave
Erns		 High
Erns		 Max
Erns		 Total   Low/
Low		 Ave/
Low		 Ave/
Ave		 High/
Ave		 High/
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
                         
    AGE 22 IN 2019
    Composite Workers   Married, Two Earner Couples
    ----------------------------   ----------------------------
  (TF
Int)		 Low
Erns		 Ave
Erns		 High
Erns		 Max
Erns		 Total   Low/
Low		 Ave/
Low		 Ave/
Ave		 High/
Ave		 High/
High
Present Law (2.3) 129 101 87 82 98   124 112 92 88 76
PL PAYGO (2.3) 104 82 70 66 79   100 91 75 71 62
5% PSA-All Tax (2.3) 154 114 96 87 110   156 125 108 100 93
5% PSA-Hi Yld (2.3) 180 140 124 115 137   182 152 135 127 120
1.6% IA-Hi Yld (2.3) 134 105 87 79 100   136 114 101 89 80
MB+ (4.6) 146 115 98 93 111   140 127 105 99 86
MB-PAYGO (4.2) 119 94 80 75 90   114 103 85 81 70
MTR (2.3) 119 86 65 57 80   120 96 82 68 58
LTR (2.3) 146 84 58 44 79   148 101 75 62 52
                         
* 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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