Description of Proposed Provision:
B5.2: Beginning for those newly eligible in 2020, reconfigure the special minimum benefit: (a) A year of coverage is defined as a year in which 4 quarters of coverage are earned. (b) At implementation, set the PIA for 30 years of coverage equal to 125 percent of the monthly poverty level (about $1,265 in 2018). For those with under 30 years of coverage, the PIA per year of coverage over 10 years is $1,265/20 = $63.25. (c) Index the initial PIA per year of coverage by wage growth for successive cohorts.

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
0.000.00-0.00
202114.0912.90-1.20
245
0.010.00-0.01
202214.2412.92-1.32
229
0.010.00-0.01
202314.4112.94-1.47
213
0.020.00-0.02
202414.6112.97-1.64
196
0.020.00-0.02
202514.8212.99-1.83
179
0.030.00-0.03
202615.0313.11-1.91
162
0.040.00-0.04
202715.2413.13-2.10
146
0.050.00-0.04
202815.4913.18-2.31
129
0.050.00-0.05
202915.6913.19-2.50
112
0.060.00-0.06
203015.8813.21-2.67
95
0.070.00-0.07
203116.0513.22-2.83
78
0.080.00-0.08
203216.2013.23-2.96
60
0.090.00-0.08
203316.3313.24-3.08
42
0.100.00-0.09
203416.4313.25-3.18
24
0.100.01-0.10
203516.5113.26-3.25
6
0.110.01-0.10
203616.5813.26-3.31
----
0.120.01-0.11
203716.6413.27-3.37
----
0.120.01-0.12
203816.7013.27-3.42
----
0.130.01-0.12
203916.7413.28-3.46
----
0.140.01-0.13
204016.7613.28-3.48
----
0.140.01-0.14
204116.7613.28-3.48
----
0.150.01-0.14
204216.7513.28-3.46
----
0.160.01-0.15
204316.7213.28-3.44
----
0.160.01-0.15
204416.6913.28-3.41
----
0.170.01-0.16
204516.6613.28-3.38
----
0.180.01-0.17
204616.6313.28-3.35
----
0.180.01-0.17
204716.6113.28-3.33
----
0.190.01-0.18
204816.6013.28-3.32
----
0.190.01-0.18
204916.5813.28-3.30
----
0.200.01-0.19
205016.5713.28-3.29
----
0.200.01-0.19
205116.5713.28-3.29
----
0.210.01-0.20
205216.5813.28-3.29
----
0.210.01-0.20
205316.5913.29-3.30
----
0.220.01-0.20
205416.6113.29-3.32
----
0.220.01-0.21
205516.6313.29-3.34
----
0.220.01-0.21
205616.6713.29-3.38
----
0.230.01-0.21
205716.7113.30-3.41
----
0.230.01-0.22
205816.7613.30-3.46
----
0.230.01-0.22
205916.8113.31-3.51
----
0.240.01-0.22
206016.8713.31-3.56
----
0.240.01-0.23
206116.9213.31-3.61
----
0.240.01-0.23
206216.9813.32-3.66
----
0.250.01-0.23
206317.0413.32-3.71
----
0.250.01-0.23
206417.0913.33-3.76
----
0.250.01-0.24
206517.1513.33-3.82
----
0.250.01-0.24
206617.2113.34-3.87
----
0.250.01-0.24
206717.2713.34-3.93
----
0.260.01-0.24
206817.3313.34-3.99
----
0.260.01-0.24
206917.3913.35-4.04
----
0.260.01-0.24
207017.4613.35-4.10
----
0.260.01-0.25
207117.5113.36-4.16
----
0.260.02-0.25
207217.5613.36-4.20
----
0.260.02-0.25
207317.6113.36-4.25
----
0.260.02-0.25
207417.6613.37-4.29
----
0.260.02-0.25
207517.7013.37-4.32
----
0.270.02-0.25
207617.7213.37-4.35
----
0.270.02-0.25
207717.7413.38-4.37
----
0.270.02-0.25
207817.7513.38-4.37
----
0.270.02-0.25
207917.7413.38-4.37
----
0.270.02-0.25
208017.7313.38-4.35
----
0.270.02-0.25
208117.7113.37-4.33
----
0.270.02-0.25
208217.6913.37-4.31
----
0.260.02-0.25
208317.6713.37-4.29
----
0.260.02-0.25
208417.6413.37-4.27
----
0.260.02-0.25
208517.6213.37-4.25
----
0.260.02-0.25
208617.6013.37-4.23
----
0.260.02-0.25
208717.5913.37-4.22
----
0.260.02-0.25
208817.5913.37-4.22
----
0.260.02-0.25
208917.6013.37-4.23
----
0.260.02-0.25
209017.6213.37-4.25
----
0.260.02-0.25
209117.6513.37-4.28
----
0.260.02-0.25
209217.6913.37-4.32
----
0.260.02-0.25
209317.7413.38-4.36
----
0.260.02-0.25
209417.7913.38-4.41
----
0.260.02-0.25


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 16.78% 13.82% -2.95%
2035
0.18% 0.01% -0.17%

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