Description of Proposed Provision:
B1.2: Progressive price indexing (30th percentile) of PIA factors beginning with individuals newly eligible for OASDI benefits in 2026: 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.

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
-0.00-0.000.00
202715.1913.13-2.06
147
-0.00-0.000.00
202815.4213.17-2.25
130
-0.01-0.000.01
202915.6113.19-2.42
114
-0.01-0.000.01
203015.7813.20-2.58
97
-0.02-0.000.02
203115.9313.21-2.71
81
-0.04-0.000.04
203216.0513.23-2.83
64
-0.06-0.000.06
203316.1513.23-2.92
47
-0.08-0.000.08
203416.2113.24-2.97
30
-0.11-0.010.11
203516.2513.24-3.01
12
-0.15-0.010.14
203616.2713.25-3.02
----
-0.19-0.010.18
203716.2813.25-3.03
----
-0.24-0.010.22
203816.2813.25-3.02
----
-0.29-0.010.27
203916.2613.25-3.01
----
-0.34-0.020.32
204016.2213.25-2.96
----
-0.40-0.020.38
204116.1513.25-2.90
----
-0.46-0.020.44
204216.0713.25-2.82
----
-0.52-0.030.50
204315.9713.24-2.72
----
-0.59-0.030.56
204415.8613.24-2.62
----
-0.66-0.040.63
204515.7513.23-2.52
----
-0.73-0.040.69
204615.6413.23-2.42
----
-0.81-0.040.76
204715.5413.22-2.32
----
-0.89-0.050.84
204815.4413.22-2.22
----
-0.97-0.050.91
204915.3413.21-2.12
----
-1.05-0.060.99
205015.2413.21-2.03
----
-1.13-0.061.07
205115.1413.20-1.94
----
-1.22-0.071.15
205215.0613.20-1.86
----
-1.31-0.071.23
205314.9813.20-1.78
----
-1.39-0.081.32
205414.9013.19-1.71
----
-1.48-0.081.40
205514.8313.19-1.64
----
-1.57-0.091.49
205614.7713.19-1.59
----
-1.67-0.091.57
205714.7213.19-1.53
----
-1.76-0.101.66
205814.6713.18-1.49
----
-1.85-0.101.75
205914.6313.18-1.45
----
-1.95-0.111.84
206014.5913.18-1.40
----
-2.04-0.121.93
206114.5513.18-1.37
----
-2.13-0.122.01
206214.5113.18-1.33
----
-2.23-0.132.10
206314.4713.18-1.29
----
-2.32-0.132.19
206414.4313.18-1.26
----
-2.41-0.142.27
206514.4013.17-1.22
----
-2.50-0.142.36
206614.3713.17-1.19
----
-2.59-0.152.44
206714.3413.17-1.16
----
-2.68-0.152.52
206814.3113.17-1.14
----
-2.77-0.162.61
206914.2813.17-1.11
----
-2.86-0.162.69
207014.2513.17-1.08
----
-2.94-0.172.77
207114.2213.17-1.05
----
-3.03-0.172.86
207214.1913.17-1.02
----
-3.12-0.182.94
207314.1513.17-0.98
----
-3.20-0.183.02
207414.1113.16-0.94
----
-3.28-0.193.09
207514.0613.16-0.90
----
-3.37-0.193.17
207614.0113.16-0.85
----
-3.44-0.203.25
207713.9613.16-0.80
----
-3.52-0.203.32
207813.8913.15-0.74
----
-3.59-0.213.39
207913.8213.15-0.67
----
-3.66-0.213.45
208013.7413.14-0.59
----
-3.73-0.223.51
208113.6513.14-0.51
----
-3.79-0.223.57
208213.5713.14-0.44
----
-3.85-0.223.63
208313.4913.13-0.36
----
-3.91-0.233.69
208413.4113.13-0.28
----
-3.97-0.233.74
208513.3213.12-0.20
----
-4.03-0.233.80
208613.2513.12-0.13
----
-4.09-0.243.85
208713.1813.11-0.07
----
-4.15-0.243.91
208813.1113.11-0.01
----
-4.21-0.243.97
208913.0613.100.05
----
-4.28-0.254.03
209013.0113.100.09
----
-4.34-0.254.09
209112.9713.100.13
----
-4.41-0.264.16
209212.9413.100.16
----
-4.48-0.264.22
209312.9213.100.18
----
-4.56-0.264.29
209412.8913.100.20
----
-4.63-0.274.36


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 14.93% 13.72% -1.21%
2035
-1.66% -0.09% 1.57%

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