Description of Proposed Provision:
B5.3: Beginning for those newly eligible in 2020, reconfigure the special minimum benefit: (a) A year of coverage is defined to be either a year in which 4 quarters of coverage are earned or a child is in care. Childcare years are granted to parents who have a child under 5, with a limit of 8 such years. (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
202114.1012.90-1.20
245
0.010.00-0.01
202214.2512.92-1.33
229
0.020.00-0.02
202314.4212.94-1.49
213
0.030.00-0.03
202414.6312.97-1.66
196
0.040.00-0.04
202514.8412.99-1.85
179
0.050.00-0.05
202615.0513.11-1.94
162
0.060.00-0.06
202715.2713.14-2.13
145
0.080.00-0.07
202815.5213.18-2.35
128
0.090.00-0.09
202915.7313.20-2.54
111
0.100.00-0.10
203015.9213.21-2.71
94
0.120.01-0.11
203116.1013.22-2.87
76
0.130.01-0.12
203216.2513.23-3.02
58
0.140.01-0.14
203316.3913.25-3.14
40
0.150.01-0.15
203416.4913.25-3.24
22
0.160.01-0.16
203516.5713.26-3.31
3
0.170.01-0.17
203616.6413.27-3.38
----
0.180.01-0.17
203716.7113.27-3.44
----
0.190.01-0.18
203816.7713.28-3.49
----
0.200.01-0.19
203916.8213.28-3.53
----
0.210.01-0.20
204016.8413.29-3.55
----
0.220.01-0.21
204116.8413.29-3.56
----
0.230.01-0.22
204216.8313.29-3.54
----
0.240.01-0.23
204316.8113.29-3.52
----
0.250.01-0.24
204416.7813.29-3.49
----
0.260.01-0.24
204516.7513.29-3.47
----
0.270.01-0.25
204616.7313.28-3.44
----
0.270.01-0.26
204716.7113.28-3.42
----
0.280.02-0.27
204816.6913.29-3.41
----
0.290.02-0.27
204916.6813.29-3.39
----
0.300.02-0.28
205016.6713.29-3.38
----
0.300.02-0.29
205116.6713.29-3.38
----
0.310.02-0.29
205216.6813.29-3.39
----
0.320.02-0.30
205316.6913.29-3.40
----
0.320.02-0.30
205416.7113.29-3.42
----
0.330.02-0.31
205516.7413.30-3.44
----
0.330.02-0.31
205616.7813.30-3.48
----
0.340.02-0.32
205716.8213.30-3.52
----
0.340.02-0.32
205816.8713.31-3.56
----
0.340.02-0.32
205916.9213.31-3.61
----
0.350.02-0.33
206016.9813.32-3.66
----
0.350.02-0.33
206117.0313.32-3.71
----
0.350.02-0.33
206217.0913.33-3.76
----
0.360.02-0.34
206317.1513.33-3.82
----
0.360.02-0.34
206417.2013.33-3.87
----
0.360.02-0.34
206517.2613.34-3.92
----
0.360.02-0.34
206617.3213.34-3.98
----
0.360.02-0.34
206717.3813.35-4.03
----
0.370.02-0.35
206817.4413.35-4.09
----
0.370.02-0.35
206917.5013.35-4.15
----
0.370.02-0.35
207017.5713.36-4.21
----
0.370.02-0.35
207117.6213.36-4.26
----
0.370.02-0.35
207217.6813.37-4.31
----
0.370.02-0.35
207317.7213.37-4.35
----
0.380.02-0.35
207417.7713.37-4.39
----
0.380.02-0.35
207517.8113.38-4.43
----
0.380.02-0.35
207617.8413.38-4.46
----
0.380.02-0.35
207717.8513.38-4.47
----
0.380.02-0.35
207817.8613.38-4.48
----
0.380.02-0.35
207917.8513.38-4.47
----
0.380.02-0.35
208017.8413.38-4.46
----
0.380.02-0.35
208117.8213.38-4.44
----
0.370.02-0.35
208217.8013.38-4.42
----
0.370.02-0.35
208317.7713.38-4.40
----
0.370.02-0.35
208417.7513.38-4.37
----
0.370.02-0.35
208517.7313.38-4.35
----
0.370.02-0.35
208617.7113.37-4.34
----
0.370.02-0.35
208717.7013.37-4.33
----
0.370.02-0.35
208817.7013.37-4.32
----
0.370.02-0.35
208917.7113.37-4.33
----
0.370.02-0.35
209017.7313.38-4.35
----
0.370.02-0.35
209117.7613.38-4.38
----
0.370.02-0.35
209217.8013.38-4.42
----
0.370.02-0.35
209317.8513.38-4.46
----
0.370.02-0.35
209417.9013.39-4.51
----
0.370.02-0.35


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 16.86% 13.83% -3.03%
2035
0.26% 0.01% -0.25%

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