Description of Proposed Provision:
C2.2: After the normal retirement age (NRA) reaches 67 for those age 62 in 2022, index the NRA to maintain a constant ratio of expected retirement years (life expectancy at NRA) to potential work years (NRA minus 20). We assume the NRA will increase 1 month every 2 years. Also, raise the earliest eligibility age (EEA) for retired-workers, aged widow(er)s, and disabled widow(er)s by the same amount as the NRA starting for those attaining EEA in 2020.

Financial Estimates for the OASDI Trust Fund Program

  Proposal   Change from Current Law
  Expressed as a percentage of
current-law taxable payroll

Trust fund
ratio as of
January 1
Expressed as a percentage of
current-law taxable payroll
Calendar
year
Cost
rate
Income
rate
Annual
balance

Cost
rate
Income
rate
Annual
balance
201913.9112.85-1.06
273
0.000.000.00
202013.9412.87-1.07
260
-0.000.000.00
202114.0812.90-1.18
245
-0.010.000.01
202214.2212.92-1.29
230
-0.010.000.01
202314.3812.94-1.43
214
-0.020.000.02
202414.5612.97-1.58
198
-0.030.000.03
202514.7512.99-1.76
181
-0.040.010.04
202614.9413.12-1.82
165
-0.050.010.05
202715.1313.14-1.99
149
-0.060.010.06
202815.3613.18-2.18
132
-0.070.010.08
202915.5513.20-2.35
116
-0.080.010.09
203015.7213.21-2.50
100
-0.090.010.10
203115.8713.23-2.64
84
-0.100.010.11
203216.0013.24-2.76
67
-0.110.010.12
203316.1113.25-2.86
51
-0.120.010.13
203416.1913.25-2.94
34
-0.130.010.14
203516.2513.26-2.99
16
-0.150.010.16
203616.3013.27-3.03
----
-0.160.010.17
203716.3513.27-3.07
----
-0.170.010.18
203816.3813.28-3.10
----
-0.190.010.19
203916.4013.28-3.12
----
-0.200.010.21
204016.4013.28-3.12
----
-0.210.010.22
204116.3813.28-3.10
----
-0.230.010.23
204216.3513.28-3.07
----
-0.240.010.25
204316.3013.28-3.02
----
-0.260.010.27
204416.2513.28-2.97
----
-0.280.010.28
204516.1913.28-2.91
----
-0.300.010.30
204616.1413.28-2.86
----
-0.320.010.32
204716.0913.28-2.81
----
-0.340.010.34
204816.0413.28-2.77
----
-0.360.010.37
204916.0013.28-2.72
----
-0.380.010.39
205015.9613.28-2.68
----
-0.410.010.42
205115.9213.28-2.64
----
-0.440.010.45
205215.9013.28-2.62
----
-0.470.010.48
205315.8813.28-2.60
----
-0.500.010.50
205415.8613.28-2.58
----
-0.520.010.53
205515.8613.28-2.58
----
-0.550.010.55
205615.8713.29-2.59
----
-0.570.010.57
205715.8913.29-2.60
----
-0.590.010.60
205815.9113.29-2.62
----
-0.610.010.62
205915.9413.30-2.65
----
-0.630.000.64
206015.9713.30-2.67
----
-0.650.000.66
206116.0113.31-2.70
----
-0.670.000.68
206216.0413.31-2.73
----
-0.690.000.70
206316.0713.31-2.76
----
-0.720.000.72
206416.1013.32-2.79
----
-0.740.000.74
206516.1313.32-2.81
----
-0.760.000.76
206616.1613.32-2.84
----
-0.790.000.79
206716.2013.33-2.87
----
-0.820.000.82
206816.2413.33-2.90
----
-0.840.000.84
206916.2713.33-2.94
----
-0.860.000.86
207016.3113.34-2.98
----
-0.880.000.88
207116.3513.34-3.01
----
-0.900.000.90
207216.3913.35-3.04
----
-0.920.000.92
207316.4113.35-3.06
----
-0.930.000.93
207416.4413.35-3.09
----
-0.950.000.95
207516.4613.36-3.11
----
-0.970.000.97
207616.4713.36-3.11
----
-0.99-0.000.99
207716.4713.36-3.11
----
-1.01-0.001.01
207816.4613.36-3.10
----
-1.02-0.001.02
207916.4413.36-3.08
----
-1.04-0.001.04
208016.4113.36-3.05
----
-1.05-0.001.05
208116.3913.36-3.03
----
-1.06-0.001.05
208216.3613.35-3.01
----
-1.06-0.001.06
208316.3213.35-2.97
----
-1.08-0.011.07
208416.2713.35-2.92
----
-1.11-0.011.10
208516.2113.35-2.87
----
-1.14-0.011.13
208616.1413.34-2.80
----
-1.20-0.011.19
208716.0813.34-2.74
----
-1.24-0.011.24
208816.0413.34-2.70
----
-1.28-0.011.27
208916.0213.34-2.68
----
-1.31-0.011.30
209016.0213.34-2.68
----
-1.34-0.011.33
209116.0413.35-2.69
----
-1.35-0.011.34
209216.0713.35-2.72
----
-1.36-0.011.35
209316.1113.35-2.75
----
-1.37-0.011.36
209416.1513.36-2.79
----
-1.37-0.011.36


Summarized Estimates

  Proposal   Change from Current Law
Years Cost
rate
Income
rate
Actuarial
balance

Year of reserve
depletion
1

Cost
rate
Income
rate
Actuarial
balance
2019-2093 16.06% 13.81% -2.25%
2035
-0.54% 0.00% 0.54%

1 Under current law, the year of Trust Fund reserve depletion is 2035.
Based on Intermediate Assumptions of the 2019 Trustees Report.