Description of Proposed Provision:
B1.6 (2028): Progressive price indexing (30th percentile) of PIA factors beginning with individuals newly eligible for OASI benefits in 2028: Create a new bend point at the 30th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 30th percentile and below. Reduce the 32 and 15 percent factors above the 30th percentile such that the initial benefit for a worker with AIME equal to the taxable maximum grows by inflation rather than the growth in the SSA average wage index. Disabled workers are: (a) not affected prior to normal retirement age; and (b) subject to a proportional reduction in benefits, based on the worker's years of disability, upon conversion to retired-worker beneficiary status.

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
202114.0912.90-1.19
245
0.000.000.00
202214.2312.92-1.31
229
0.000.000.00
202314.4012.94-1.46
213
0.000.000.00
202414.5912.97-1.62
197
0.000.000.00
202514.7912.99-1.80
180
0.000.000.00
202614.9913.11-1.88
163
0.000.000.00
202715.1913.13-2.06
147
0.000.000.00
202815.4313.17-2.26
130
-0.00-0.000.00
202915.6213.19-2.43
114
-0.00-0.000.00
203015.8013.20-2.60
97
-0.00-0.000.00
203115.9613.22-2.74
80
-0.01-0.000.01
203216.0913.23-2.87
63
-0.01-0.000.01
203316.2113.24-2.97
46
-0.02-0.000.02
203416.2913.24-3.05
28
-0.04-0.000.03
203516.3413.25-3.10
10
-0.05-0.000.05
203616.3813.25-3.13
----
-0.08-0.000.07
203716.4113.26-3.16
----
-0.10-0.010.10
203816.4313.26-3.17
----
-0.14-0.010.13
203916.4313.26-3.17
----
-0.17-0.010.16
204016.4013.26-3.14
----
-0.21-0.010.20
204116.3613.26-3.10
----
-0.25-0.010.24
204216.2913.26-3.03
----
-0.30-0.020.28
204316.2113.25-2.95
----
-0.35-0.020.33
204416.1213.25-2.87
----
-0.40-0.020.38
204516.0313.24-2.78
----
-0.46-0.030.43
204615.9313.24-2.69
----
-0.52-0.030.49
204715.8413.24-2.61
----
-0.58-0.030.55
204815.7613.23-2.53
----
-0.65-0.040.61
204915.6713.23-2.44
----
-0.72-0.040.67
205015.5813.22-2.36
----
-0.79-0.050.74
205115.5013.22-2.28
----
-0.86-0.050.81
205215.4313.22-2.22
----
-0.93-0.060.88
205315.3613.21-2.15
----
-1.01-0.060.95
205415.3013.21-2.09
----
-1.09-0.071.02
205515.2413.21-2.03
----
-1.17-0.071.10
205615.1913.21-1.99
----
-1.25-0.071.17
205715.1513.20-1.94
----
-1.33-0.081.25
205815.1113.20-1.91
----
-1.42-0.091.33
205915.0713.20-1.87
----
-1.50-0.091.41
206015.0413.20-1.84
----
-1.59-0.101.49
206115.0113.20-1.81
----
-1.67-0.101.57
206214.9813.20-1.78
----
-1.76-0.111.65
206314.9513.20-1.75
----
-1.84-0.111.73
206414.9213.20-1.72
----
-1.92-0.121.80
206514.8913.20-1.70
----
-2.00-0.121.88
206614.8713.19-1.67
----
-2.09-0.131.96
206714.8513.19-1.65
----
-2.17-0.132.04
206814.8213.19-1.63
----
-2.25-0.142.11
206914.8013.19-1.61
----
-2.33-0.142.19
207014.7813.19-1.59
----
-2.42-0.152.27
207114.7613.19-1.56
----
-2.50-0.152.34
207214.7313.19-1.54
----
-2.58-0.162.42
207314.6913.19-1.51
----
-2.65-0.162.49
207414.6613.19-1.47
----
-2.73-0.172.57
207514.6213.18-1.43
----
-2.81-0.172.64
207614.5713.18-1.39
----
-2.88-0.182.71
207714.5213.18-1.34
----
-2.96-0.182.78
207814.4613.18-1.28
----
-3.02-0.182.84
207914.3913.17-1.22
----
-3.09-0.192.90
208014.3213.17-1.15
----
-3.15-0.192.96
208114.2413.16-1.07
----
-3.21-0.203.01
208214.1613.16-1.00
----
-3.26-0.203.06
208314.0813.15-0.93
----
-3.32-0.203.12
208414.0013.15-0.85
----
-3.37-0.213.17
208513.9313.14-0.78
----
-3.43-0.213.22
208613.8613.14-0.72
----
-3.48-0.213.27
208713.7913.14-0.66
----
-3.53-0.223.32
208813.7413.13-0.60
----
-3.59-0.223.37
208913.6913.13-0.56
----
-3.65-0.223.43
209013.6513.13-0.52
----
-3.71-0.233.48
209113.6113.12-0.49
----
-3.77-0.233.54
209213.5913.12-0.46
----
-3.84-0.243.60
209313.5713.12-0.44
----
-3.91-0.243.67
209413.5513.12-0.43
----
-3.98-0.243.73


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 15.26% 13.73% -1.53%
2035
-1.34% -0.08% 1.26%

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