Table 3--Financial Effects of the Representative Nick Smith Proposal Assuming a 100% PRSA Participation Rate
PRSA proceeds go to estate if worker dies before entitlement
Ultimate Real Trust Fund Interest Rate 3.00
Ultimate Real PRSA Rate for Offset 3.70
Assumed PRSA Participation Rate 100%
Year
OASDI
TFR
1-1-yr
Marginal Change in OASDI Contribution Rate
Net
OASDI
Contribution
Rate 2/
PRSA Contribution Rate
Average
PRSA
Contribution
Rate
Cost
Rate 1/
Income
Rate
Annual
Balance
Total
Redirection
to PRSAs
Reimbursement
for Minimum
DI Benefits
Specified
General Fund
Transfers
From
Trust Funds
Refundable
Credit from
General Fund
2003
10.90
12.71
1.80
288
 
 
 
 
12.40
 
 
 
2004
10.83
12.69
1.86
309
 
 
 
 
12.40
 
 
 
2005
10.99
10.22
-0.78
320
-2.495
-2.500
0.005
 
9.90
2.50
0.34
2.84
2006
10.85
10.33
-0.52
318
0.112
 
0.010
0.102
10.02
2.50
0.34
2.84
2007
10.79
10.75
-0.04
316
0.409
 
0.003
0.405
10.43
2.50
0.34
2.84
2008
10.78
11.21
0.43
318
0.450
 
-0.002
0.453
10.88
2.50
0.34
2.84
2009
10.80
11.68
0.88
324
0.456
 
-0.002
0.458
11.33
2.50
0.34
2.84
2010
10.83
12.12
1.29
334
0.428
 
-0.001
0.429
11.76
2.50
0.34
2.84
2011
10.86
12.67
1.81
348
0.520
 
0.000
0.520
12.28
2.50
0.34
2.84
2012
10.92
13.34
2.42
366
0.653
 
0.000
0.653
12.93
2.50
0.34
2.84
2013
11.00
13.27
2.27
389
-0.088
 
0.000
-0.088
12.85
2.50
0.34
2.84
2014
11.08
10.35
-0.74
411
-2.933
 
-0.001
-2.932
9.91
2.50
0.34
2.84
2015
11.18
10.36
-0.82
406
0.000
 
0.000
 
9.91
2.50
0.34
2.84
2016
11.29
10.37
-0.93
400
0.000
 
0.000
 
9.91
2.50
0.34
2.84
2017
11.42
10.38
-1.04
393
0.001
 
0.001
 
9.91
2.50
0.34
2.84
2018
11.55
10.40
-1.15
386
0.001
 
0.001
 
9.91
2.50
0.34
2.84
2019
11.67
10.41
-1.26
377
0.001
 
0.001
 
9.92
2.50
0.34
2.84
2020
11.81
10.43
-1.38
368
0.001
 
0.001
 
9.92
2.50
0.34
2.84
2021
11.95
10.44
-1.51
357
0.002
 
0.002
 
9.92
2.50
0.34
2.84
2022
12.07
10.46
-1.62
346
0.002
 
0.002
 
9.92
2.50
0.34
2.84
2023
12.16
10.47
-1.69
336
0.002
 
0.002
 
9.92
2.50
0.34
2.84
2024
12.24
10.48
-1.76
325
0.002
 
0.002
 
9.92
2.50
0.34
2.84
2025
12.30
10.50
-1.80
314
0.003
 
0.003
 
9.93
2.50
0.34
2.84
2026
12.34
10.26
-2.08
304
-0.247
-0.250
0.003
 
9.68
2.75
0.34
3.09
2027
12.35
10.27
-2.08
291
0.003
 
0.003
 
9.68
2.75
0.34
3.09
2028
12.35
10.28
-2.07
279
0.003
 
0.003
 
9.69
2.75
0.34
3.09
2029
12.33
10.29
-2.04
267
0.003
 
0.003
 
9.69
2.75
0.34
3.09
2030
12.29
10.30
-1.99
256
0.003
 
0.003
 
9.69
2.75
0.34
3.09
2031
12.22
10.31
-1.90
245
0.003
 
0.003
 
9.70
2.75
0.34
3.09
2032
12.11
10.32
-1.79
235
0.003
 
0.003
 
9.70
2.75
0.34
3.09
2033
11.98
10.33
-1.66
226
0.003
 
0.003
 
9.70
2.75
0.34
3.09
2034
11.84
10.33
-1.51
219
0.004
 
0.004
 
9.71
2.75
0.34
3.09
2035
11.68
10.34
-1.35
212
0.004
 
0.004
 
9.71
2.75
0.34
3.09
2036
11.51
10.34
-1.17
207
0.004
 
0.004
 
9.71
2.75
0.34
3.09
2037
11.32
10.35
-0.97
204
0.004
 
0.004
 
9.72
2.75
0.34
3.09
2038
11.12
10.35
-0.77
202
0.004
 
0.004
 
9.72
2.75
0.34
3.09
2039
10.90
10.10
-0.80
202
-0.245
-0.250
0.005
 
9.48
3.00
0.34
3.34
2040
10.70
9.91
-0.79
202
-0.195
-0.200
0.005
 
9.28
3.20
0.34
3.54
2041
10.47
9.71
-0.76
202
-0.195
-0.200
0.005
 
9.09
3.40
0.34
3.74
2042
10.24
9.52
-0.72
202
-0.195
-0.200
0.005
 
8.89
3.60
0.34
3.94
2043
10.01
9.32
-0.68
203
-0.194
-0.200
0.006
 
8.70
3.80
0.34
4.14
2044
9.77
9.13
-0.64
205
-0.194
-0.200
0.006
 
8.50
4.00
0.34
4.34
2045
9.54
8.93
-0.61
206
-0.193
-0.200
0.007
 
8.31
4.20
0.34
4.54
2046
9.31
8.74
-0.57
208
-0.193
-0.200
0.007
 
8.12
4.40
0.34
4.74
2047
9.08
8.55
-0.53
211
-0.192
-0.200
0.008
 
7.93
4.60
0.34
4.94
2048
8.86
8.36
-0.50
214
-0.192
-0.200
0.008
 
7.73
4.80
0.34
5.14
2049
8.63
8.17
-0.46
217
-0.191
-0.200
0.009
 
7.54
5.00
0.34
5.34
2050
8.42
7.98
-0.44
221
-0.190
-0.200
0.010
 
7.35
5.20
0.34
5.54
2051
8.21
7.79
-0.42
225
-0.190
-0.200
0.010
 
7.16
5.40
0.34
5.74
2052
8.01
7.61
-0.40
229
-0.189
-0.200
0.011
 
6.97
5.60
0.34
5.94
2053
7.81
7.42
-0.39
234
-0.189
-0.200
0.011
 
6.78
5.80
0.34
6.14
2054
7.61
7.24
-0.37
239
-0.189
-0.200
0.011
 
6.60
6.00
0.34
6.34
2055
7.43
7.06
-0.38
244
-0.188
-0.200
0.012
 
6.41
6.20
0.34
6.54
2056
7.26
6.87
-0.39
249
-0.188
-0.200
0.012
 
6.22
6.40
0.34
6.74
2057
7.08
6.69
-0.39
254
-0.188
-0.200
0.012
 
6.03
6.60
0.34
6.94
2058
6.90
6.51
-0.40
259
-0.188
-0.200
0.012
 
5.84
6.80
0.34
7.14
2059
6.73
6.33
-0.40
264
-0.188
-0.200
0.012
 
5.65
7.00
0.34
7.34
2060
6.55
6.14
-0.40
270
-0.188
-0.200
0.012
 
5.47
7.20
0.34
7.54
2061
6.37
5.96
-0.41
276
-0.188
-0.200
0.012
 
5.28
7.40
0.34
7.74
2062
6.19
5.78
-0.41
282
-0.188
-0.200
0.012
 
5.09
7.60
0.34
7.94
2063
6.02
5.60
-0.42
288
-0.188
-0.200
0.012
 
4.90
7.80
0.34
8.14
2064
5.84
5.42
-0.42
295
-0.187
-0.200
0.013
 
4.72
8.00
0.34
8.34
2065
5.70
5.44
-0.26
300
0.013
 
0.013
 
4.73
8.00
0.34
8.34
2066
5.55
5.46
-0.09
308
0.013
 
0.013
 
4.74
8.00
0.34
8.34
2067
5.41
5.48
0.07
320
0.012
 
0.012
 
4.75
8.00
0.34
8.34
2068
5.28
5.51
0.23
335
0.012
 
0.012
 
4.77
8.00
0.34
8.34
2069
5.14
5.53
0.39
354
0.012
 
0.012
 
4.78
8.00
0.34
8.34
2070
5.03
5.55
0.53
376
0.011
 
0.011
 
4.79
8.00
0.34
8.34
2071
4.91
5.58
0.67
402
0.011
 
0.011
 
4.80
8.00
0.34
8.34
2072
4.80
5.60
0.80
432
0.011
 
0.011
 
4.81
8.00
0.34
8.34
2073
4.68
5.62
0.94
467
0.011
 
0.011
 
4.82
8.00
0.34
8.34
2074
4.57
5.65
1.08
507
0.010
 
0.010
 
4.83
8.00
0.34
8.34
2075
4.46
5.67
1.21
552
0.010
 
0.010
 
4.84
8.00
0.34
8.34
2076
4.35
5.70
1.35
604
0.010
 
0.010
 
4.85
8.00
0.34
8.34
2077
4.23
5.72
1.49
662
0.010
 
0.010
 
4.86
8.00
0.34
8.34
2078
4.12
5.75
1.63
727
0.009
 
0.009
 
4.87
8.00
0.34
8.34
 
Summarized
 
 
 
 
 
 
 
 
 
 
Cost
Rate
Income
Rate
Actuarial
Balance
 
Change in
Actuarial
Balance
 
 
 
 
 
 
 
2003-
2077
10.00
10.19
0.18
 
2.10
 
 
 
 
 
 
 
Based on Intermediate Assumptions of the 2003 Trustees Report.
1/ Net of Benefit Cost Reductions from PRSA Offsets.
2/ Includes payroll tax contributions plus reimbursement for minimum DI benefits plus specified General Fund transfers (expressed as a percent of taxable payroll)
 
Office of the Chief Actuary
Social Security Administration
September 9, 2003

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