TABLE II.E2.--COST-OF-LIVING BENEFIT INCREASES, AVERAGE WAGE INDEX
            INCREASES, OASDI CONTRIBUTION AND BENEFIT BASES, AND
             RETIREMENT EARNINGS TEST EXEMPT AMOUNTS, 1975-2004
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                                                         Retirement earnings
                                Increase        OASDI     test exempt amount
                      OASDI   in average      contri- -------------------------
                    benefit         wage   bution and                      Ages
               increases 1/     index 2/      benefit        Under       65 and
Calendar year     (percent)    (percent)      base 3/       age 65         over
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Historical data:
1975.........           8.0          7.5      $14,100       $2,520       $2,520
1976.........           6.4          6.9       15,300        2,760        2,760
1977.........           5.9          6.0       16,500        3,000        3,000
1978.........           6.5          7.9       17,700        3,240     5/ 4,000
1979.........           9.9          8.7    5/ 22,900        3,480     5/ 4,500

1980.........          14.3          9.0    5/ 25,900        3,720     5/ 5,000
1981.........          11.2         10.1    5/ 29,700        4,080     5/ 5,500
1982.........           7.4          5.5       32,400        4,440     5/ 6,000
1983.........           3.5          4.9       35,700        4,920        6,600
1984.........           3.5          5.9       37,800        5,160        6,960

1985.........           3.1          4.3       39,600        5,400        7,320
1986.........           1.3          3.0       42,000        5,760        7,800 
1987.........           4.2          6.4       43,800        6,000        8,160 
1988.........           4.0          4.9       45,000        6,120        8,400
1989.........           4.7          4.0       48,000        6,480        8,880

1990.........           5.4          4.6       51,300        6,840        9,360 
1991.........           3.7          3.7       53,400        7,080        9,720 
1992.........           3.0          5.2       55,500        7,440       10,200 
1993.........           2.6           .9       57,600        7,680       10,560
1994.........           2.8       6/ 3.3       60,600        8,040       11,160

Intermediate:
1995.........           3.0          3.9    7/ 61,200     7/ 8,160    7/ 11,280 
1996.........           3.2          4.0       63,000        8,400       11,640 
1997.........           3.3          4.2       65,700        8,760       12,120 
1998.........           3.4          4.0       68,100        9,000       12,600 
1999.........           3.6          4.1       71,100        9,480       13,080

2000.........           3.7          4.4       73,800        9,840       13,560 
2001.........           3.9          4.6       76,800       10,200       14,160 
2002.........           4.0          4.7       80,400       10,680       14,760 
2003.........           4.0          4.8       84,000       11,160       15,480 
2004.........           4.0          4.9       87,900       11,640       16,200 

Low Cost:
1995.........           2.5          4.1    7/ 61,200     7/ 8,160    7/ 11,280 
1996.........           2.9          4.1       63,300        8,400       11,640 
1997.........           3.0          4.5       65,700        8,760       12,120 
1998.........           3.0          4.3       68,400        9,120       12,600 
1999.........           3.1          4.4       71,400        9,480       13,200

2000.........           3.0          4.5       74,700        9,960       13,800 
2001.........           3.0          4.4       78,000       10,320       14,400 
2002.........           3.0          4.3       81,300       10,800       15,000 
2003.........           3.0          4.4       84,900       11,280       15,600 
2004.........           3.0          4.5       88,800       11,760       16,320

High Cost:
1995.........           3.8          3.7    7/ 61,200     7/ 8,160    7/ 11,280 
1996.........           3.8          3.4       62,700        8,280       11,520 
1997.........           5.6          5.9       65,100        8,640       12,000 
1998.........           6.5          5.9       67,500        9,000       12,360 
1999.........           4.7          3.8       71,400        9,480       13,080

2000.........           5.0          5.4       75,600       10,080       13,920 
2001.........           5.0          5.1       78,300       10,440       14,400 
2002.........           5.0          5.0       82,800       10,920       15,240 
2003.........           5.0          5.3       87,000       11,520       15,960 
2004.........           5.0          5.5       91,200       12,120       16,800
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1/ Effective with benefits payable for June in each year 1975-82, and for
December in each year after 1982.
2/ Increase in the average wage index from prior year to the year shown. See
footnote 6 below and table III.B1 for projected dollar amounts of the average
wage index.
3/ The bases for years after 1989 were increased slightly by changes to the
indexing procedure, as required by Public Law 101-239. Prior to 1991, the
Hospital Insurance (HI) contribution base was the same as the OASDI contribu-
tion and benefit base. Higher HI bases of $125,000, $130,200, and $135,000
applied for 1991-93, respectively. Public Law 103-66 repealed the HI contribu-
tion base.
4/ In 1955-82, the retirement earnings test did not apply at ages 72 and over;
beginning in 1983, it does not apply at ages 70 and over.
5/ Amount specified by the Social Security Amendments of 1977.
6/ Based on an estimated average wage index of $23,899.66 for 1994.
7/ Actual amount, as determined and announced in October 1994.