Description of Proposed Provision:
B6.7: Starting in January 2026, provide an addition to monthly benefits for all beneficiaries who have been eligible for at least 20 years, with the following specifications: (1) Augment benefits (not the PIA) for those of qualifying age and eligibility duration with a MAGI below about $27,000 if single and $54,000 if married. MAGI is set to equal the IRMAA definition (AGI plus tax-exempt interest income). Index these thresholds after 2026 by the increase in the C-CPI-U; (2) The full additional amount is applicable for those born 1959 and later, once 24 years elapse from initial eligibility. The basic additional amount is calculated as 5 percent of the PIA for a hypothetical worker with earnings equal to the AWI each year; (3) For those born prior to 1960, the full additional amount is multiplied by the number of years they have been affected by the C-CPI-U, divided by 24; (4) Beneficiaries will receive 20 percent of their additional amount in their 20th year after initial eligibility, 40 percent in their 21st year after initial eligibility,..., and 100 percent of their additional amount in their 24th and later years after benefit eligibility; (5) Retired and disabled worker beneficiaries, dually entitled spouse beneficiaries, and all survivor beneficiaries received their addition as described above. Spousal beneficiaries (aged or with child in care) and child beneficiaries of a living retired or disabled worker receive 50 percent of the additional amount described above. Other beneficiary types (such as parents of deceased workers) will receive the percentage of the flat benefit that equals the percentage of the insured worker's PIA that they receive; (6) The AWI used is for the second year prior to the beneficiary's initial eligibility year, with applicable COLAs applied up to the age when the addition is received; and (7) The additional amount is added to the monthly benefit after reductions for early claiming or increases for delayed claiming have been applied.

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
0.000.00-0.00
202715.2013.13-2.07
147
0.010.00-0.01
202815.4413.17-2.27
130
0.010.00-0.01
202915.6413.19-2.45
114
0.010.00-0.01
203015.8213.21-2.62
97
0.020.00-0.02
203115.9913.22-2.77
80
0.020.00-0.02
203216.1313.23-2.91
63
0.030.00-0.02
203316.2613.24-3.02
45
0.030.00-0.03
203416.3613.25-3.11
27
0.030.00-0.03
203516.4413.25-3.18
9
0.040.00-0.04
203616.5013.26-3.24
----
0.040.00-0.04
203716.5613.27-3.30
----
0.050.00-0.04
203816.6213.27-3.35
----
0.050.00-0.05
203916.6613.27-3.39
----
0.060.00-0.05
204016.6813.28-3.40
----
0.060.00-0.06
204116.6813.28-3.40
----
0.070.00-0.06
204216.6613.28-3.38
----
0.070.00-0.07
204316.6313.28-3.36
----
0.080.00-0.07
204416.6013.28-3.33
----
0.080.00-0.08
204516.5713.28-3.30
----
0.090.00-0.08
204616.5413.28-3.27
----
0.090.01-0.09
204716.5213.28-3.25
----
0.090.01-0.09
204816.5013.28-3.23
----
0.100.01-0.09
204916.4913.28-3.21
----
0.100.01-0.10
205016.4713.28-3.19
----
0.100.01-0.10
205116.4613.28-3.19
----
0.100.01-0.10
205216.4713.28-3.19
----
0.100.01-0.09
205316.4713.28-3.19
----
0.100.01-0.09
205416.4813.28-3.20
----
0.100.01-0.09
205516.5113.28-3.22
----
0.100.01-0.09
205616.5413.29-3.25
----
0.100.01-0.09
205716.5813.29-3.29
----
0.100.01-0.09
205816.6213.29-3.33
----
0.090.01-0.09
205916.6713.30-3.37
----
0.090.01-0.09
206016.7213.30-3.42
----
0.090.01-0.09
206116.7713.31-3.46
----
0.090.01-0.09
206216.8213.31-3.51
----
0.090.01-0.08
206316.8813.31-3.56
----
0.090.01-0.08
206416.9313.32-3.61
----
0.090.01-0.08
206516.9913.32-3.66
----
0.090.01-0.08
206617.0413.33-3.72
----
0.090.01-0.08
206717.1013.33-3.77
----
0.090.01-0.08
206817.1613.34-3.83
----
0.090.01-0.08
206917.2213.34-3.88
----
0.090.01-0.08
207017.2813.34-3.94
----
0.090.01-0.08
207117.3413.35-3.99
----
0.090.01-0.08
207217.3913.35-4.04
----
0.090.01-0.08
207317.4413.35-4.08
----
0.090.01-0.08
207417.4813.36-4.12
----
0.090.01-0.09
207517.5213.36-4.16
----
0.090.01-0.09
207617.5513.36-4.19
----
0.090.01-0.09
207717.5713.37-4.20
----
0.090.01-0.08
207817.5713.37-4.21
----
0.090.01-0.08
207917.5713.37-4.20
----
0.090.01-0.08
208017.5513.37-4.19
----
0.090.01-0.08
208117.5313.36-4.17
----
0.090.01-0.08
208217.5113.36-4.15
----
0.090.01-0.08
208317.4913.36-4.12
----
0.080.01-0.08
208417.4613.36-4.10
----
0.080.00-0.08
208517.4413.36-4.08
----
0.080.00-0.08
208617.4213.36-4.06
----
0.080.00-0.08
208717.4113.36-4.05
----
0.080.00-0.08
208817.4113.36-4.05
----
0.080.00-0.08
208917.4213.36-4.06
----
0.080.00-0.07
209017.4413.36-4.08
----
0.080.00-0.07
209117.4713.36-4.11
----
0.080.00-0.07
209217.5113.36-4.14
----
0.080.00-0.07
209317.5513.37-4.19
----
0.080.00-0.07
209417.6013.37-4.23
----
0.080.00-0.07


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 16.66% 13.82% -2.85%
2035
0.07% 0.00% -0.06%

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