Table 1 -- Ferrara Proposal--High Expected Annual Yield, Increases General Fund Transfers for spend cut thru 2012
IA Contribution 6.4%,
Benefit Offset 100.0%
With Ultimate Real Trust Fund Interest Rate 3.0
With Ultimate Real IA Net Yield Rate of 5.2
With Offset Annuity Net Yield Rate of 5.2
Corporate Tax to Trust Fund as Percent of Pretax IA Real Yield 23.9
Year
Cost
Rate
Income
Rate1
Annual
Balance
Trust
Fund
Ratio
1-1-Year
Net
General Fund
Transfers to
Trust Fund1
(Percent
of Payroll)
Change in
OASDI
Effective
Contribution
Rate
Effective
OASDI
Contribution
Rate2
Cut in
Contribution
Rate for
Annual
Balance
IA
Contribution
Rate---
Redirected
from
Payroll Tax
2003
10.89
12.70
1.81
288
 
 
12.40
 
0
2004
10.82
12.69
1.88
309
 
 
12.40
 
0
2005
10.73
7.64
-3.10
330
0.32
-5.38
7.02
 
5.38
2006
10.65
7.92
-2.74
305
0.92
-0.32
6.69
 
5.71
2007
10.67
8.42
-2.24
282
1.52
-0.11
6.59
 
5.81
2008
10.73
8.94
-1.79
262
2.12
-0.10
6.49
 
5.91
2009
10.84
9.47
-1.37
246
2.73
-0.09
6.40
 
6.00
2010
10.99
10.01
-0.97
233
3.33
-0.08
6.32
 
6.08
2011
11.16
10.60
-0.56
223
3.94
-0.06
6.26
 
6.14
2012
11.37
11.18
-0.19
217
4.55
-0.05
6.21
 
6.19
2013
11.60
11.29
-0.30
214
4.69
-0.04
6.16
 
6.24
2014
11.83
11.41
-0.42
210
4.83
-0.04
6.12
 
6.28
2015
12.07
11.54
-0.53
206
4.97
-0.03
6.09
 
6.31
2016
12.32
11.68
-0.63
200
5.12
-0.02
6.07
 
6.33
2017
12.55
11.84
-0.72
195
5.27
-0.01
6.06
 
6.34
2018
12.79
12.00
-0.79
188
5.42
-0.01
6.05
 
6.35
2019
13.00
12.17
-0.84
182
5.59
-0.01
6.04
 
6.36
2020
13.21
12.34
-0.87
176
5.75
-0.01
6.03
 
6.37
2021
13.41
12.51
-0.90
169
5.92
-0.01
6.03
 
6.37
2022
13.58
12.69
-0.89
163
6.09
-0.01
6.02
 
6.38
2023
13.71
12.87
-0.84
158
6.26
0.00
6.02
 
6.38
2024
13.81
13.05
-0.76
153
6.44
0.00
6.02
 
6.38
2025
13.89
13.24
-0.65
149
6.62
0.00
6.01
 
6.39
2026
13.93
13.42
-0.51
147
6.80
0.00
6.01
 
6.39
2027
13.95
13.61
-0.34
145
6.98
0.00
6.01
 
6.39
2028
13.93
13.79
-0.13
145
7.17
0.00
6.01
 
6.39
2029
13.87
13.87
0.00
147
7.25
0.00
6.01
 
6.39
2030
13.78
13.78
0.00
150
7.15
0.00
6.00
 
6.40
2031
13.65
13.65
0.00
154
7.03
0.00
6.00
 
6.40
2032
13.49
13.50
0.00
158
6.88
0.00
6.00
 
6.40
2033
13.31
13.31
0.00
163
6.70
0.00
6.00
 
6.40
2034
13.09
13.09
0.00
168
6.49
0.00
6.00
 
6.40
2035
12.86
12.86
0.00
174
6.27
0.00
6.00
 
6.40
2036
12.61
12.61
0.00
180
6.03
0.00
6.00
 
6.40
2037
12.34
12.34
0.00
187
5.77
0.00
6.00
 
6.40
2038
12.05
12.05
0.00
194
5.50
0.00
6.00
 
6.40
2039
11.74
11.75
0.00
203
5.20
0.00
6.00
 
6.40
2040
11.42
11.43
0.00
211
4.90
0.00
6.00
 
6.40
2041
11.09
11.10
0.00
221
4.59
0.00
6.00
 
6.40
2042
10.75
10.75
0.00
232
4.25
0.00
6.00
 
6.40
2043
10.40
10.40
0.00
244
3.92
0.00
6.00
 
6.40
2044
10.03
10.04
0.00
256
3.58
0.00
6.00
 
6.40
2045
9.68
9.67
0.00
270
3.23
0.00
6.00
 
6.40
2046
9.31
9.31
0.00
285
2.89
0.00
6.00
 
6.40
2047
8.94
8.94
0.00
302
2.54
0.00
6.00
 
6.40
2048
8.57
8.57
0.00
320
2.18
0.00
6.00
 
6.40
2049
8.20
8.20
0.00
340
1.84
0.00
6.00
 
6.40
2050
7.84
7.84
0.00
362
1.49
0.00
6.00
 
6.40
2051
7.48
7.48
0.00
385
1.15
0.00
6.00
 
6.40
2052
7.13
7.13
0.00
411
0.82
0.00
6.00
 
6.40
2053
6.80
6.80
0.00
438
0.50
0.00
6.00
 
6.40
2054
6.48
6.48
0.00
468
0.21
0.00
6.00
 
6.40
2055
6.19
6.19
0.00
497
0.00
-0.07
5.93
0.07
6.40
2056
5.92
5.92
0.00
529
0.00
-0.26
5.68
0.32
6.40
2057
5.67
5.67
0.00
562
0.00
-0.24
5.43
0.57
6.40
2058
5.43
5.43
0.00
596
0.00
-0.23
5.21
0.79
6.40
2059
5.21
5.21
0.00
631
0.00
-0.21
5.00
1.00
6.40
2060
5.01
5.01
0.00
668
0.00
-0.19
4.81
1.19
6.40
2061
4.82
4.82
0.00
705
0.00
-0.17
4.63
1.37
6.40
2062
4.65
4.65
0.00
742
0.00
-0.16
4.47
1.53
6.40
2063
4.50
4.50
0.00
780
0.00
-0.14
4.33
1.67
6.40
2064
4.36
4.36
0.00
818
0.00
-0.13
4.20
1.80
6.40
2065
4.26
4.26
0.00
852
0.00
-0.10
4.10
1.90
6.40
2066
4.16
4.16
0.00
886
0.00
-0.09
4.01
1.99
6.40
2067
4.08
4.08
0.00
920
0.00
-0.08
3.93
2.07
6.40
2068
4.00
4.00
0.00
953
0.00
-0.07
3.85
2.15
6.40
2069
3.93
3.93
0.00
986
0.00
-0.06
3.79
2.21
6.40
2070
3.87
3.87
0.00
1,018
0.00
-0.06
3.74
2.26
6.40
2071
3.82
3.82
0.00
1,049
0.00
-0.05
3.69
2.31
6.40
2072
3.78
3.78
0.00
1,079
0.00
-0.04
3.65
2.35
6.40
2073
3.74
3.74
0.00
1,108
0.00
-0.03
3.61
2.39
6.40
2074
3.71
3.71
0.00
1,136
0.00
-0.03
3.58
2.42
6.40
2075
3.69
3.69
0.00
1,163
0.00
-0.02
3.56
2.44
6.40
2076
3.66
3.66
0.00
1,190
0.00
-0.02
3.54
2.46
6.40
2077
3.65
3.65
0.00
1,217
0.00
-0.02
3.52
2.48
6.40
2078
3.63
3.63
0.00
1,243
0.00
-0.01
3.51
2.50
6.40
 
Summarized
 
 
Cost
Rate
OASDI
Income
Rate
OASDI
Actuarial
Balance
OASDI
Change in
Actuarial
Balance
2003
-2077
10.30
10.59
0.29
2.21
Based on Intermediate Assumptions of the 2003 Trustees Report.

1 Includes Specified and Corporate Tax--based on General Fund Transfers (see table 1.d).
2 Net payroll tax rate to the Trust Funds; reduced by amount redirected for IA contribution, and cut for Annual Balance.
 
Office of the Actuary
Social Security Administration
December 1, 2003

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