Description of Proposed Provision:
B5.4: Beginning for those newly eligible in 2026, 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) From 2018 to the year of implementation, 2026, index the PIA per year of coverage using the chain-CPI index. Then, for later years, index the PIA per year of coverage by wage growth for successive cohorts. (d) Scale work requirements for disabled workers, based on the number of years of non-disabled potential work.

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
202715.2013.13-2.06
147
0.010.00-0.01
202815.4413.17-2.27
130
0.010.00-0.01
202915.6413.19-2.45
114
0.020.00-0.02
203015.8313.20-2.62
97
0.020.00-0.02
203116.0013.22-2.78
80
0.030.00-0.03
203216.1513.23-2.92
63
0.040.00-0.04
203316.2813.24-3.04
45
0.040.00-0.04
203416.3813.25-3.13
27
0.050.00-0.05
203516.4613.25-3.20
8
0.060.00-0.05
203616.5213.26-3.26
----
0.060.00-0.06
203716.5913.27-3.32
----
0.070.00-0.07
203816.6413.27-3.37
----
0.080.00-0.07
203916.6813.27-3.41
----
0.080.00-0.08
204016.7013.28-3.43
----
0.090.00-0.08
204116.7013.28-3.43
----
0.090.00-0.09
204216.6913.28-3.41
----
0.100.00-0.10
204316.6613.28-3.39
----
0.100.00-0.10
204416.6313.28-3.36
----
0.110.00-0.11
204516.6013.28-3.33
----
0.120.00-0.11
204616.5713.27-3.30
----
0.120.00-0.12
204716.5513.27-3.28
----
0.130.00-0.12
204816.5413.27-3.26
----
0.130.01-0.13
204916.5213.27-3.25
----
0.140.01-0.13
205016.5113.28-3.23
----
0.140.01-0.14
205116.5113.28-3.23
----
0.150.01-0.14
205216.5113.28-3.24
----
0.150.01-0.14
205316.5313.28-3.25
----
0.150.01-0.15
205416.5413.28-3.26
----
0.160.01-0.15
205516.5713.28-3.29
----
0.160.01-0.16
205616.6113.29-3.32
----
0.170.01-0.16
205716.6513.29-3.36
----
0.170.01-0.16
205816.7013.30-3.40
----
0.170.01-0.17
205916.7513.30-3.45
----
0.180.01-0.17
206016.8113.30-3.50
----
0.180.01-0.17
206116.8613.31-3.55
----
0.180.01-0.17
206216.9213.31-3.61
----
0.180.01-0.18
206316.9713.32-3.66
----
0.190.01-0.18
206417.0313.32-3.71
----
0.190.01-0.18
206517.0913.33-3.76
----
0.190.01-0.18
206617.1513.33-3.82
----
0.190.01-0.18
206717.2113.33-3.87
----
0.200.01-0.19
206817.2713.34-3.93
----
0.200.01-0.19
206917.3313.34-3.99
----
0.200.01-0.19
207017.4013.35-4.05
----
0.200.01-0.19
207117.4513.35-4.10
----
0.200.01-0.19
207217.5013.36-4.15
----
0.200.01-0.19
207317.5513.36-4.19
----
0.200.01-0.19
207417.6013.36-4.23
----
0.200.01-0.20
207517.6413.37-4.27
----
0.210.01-0.20
207617.6713.37-4.30
----
0.210.01-0.20
207717.6813.37-4.31
----
0.210.01-0.20
207817.6913.37-4.32
----
0.210.01-0.20
207917.6813.37-4.31
----
0.210.01-0.20
208017.6713.37-4.30
----
0.210.01-0.20
208117.6513.37-4.28
----
0.210.01-0.20
208217.6313.37-4.26
----
0.210.01-0.20
208317.6113.37-4.24
----
0.210.01-0.20
208417.5913.37-4.22
----
0.210.01-0.20
208517.5613.36-4.20
----
0.210.01-0.20
208617.5513.36-4.18
----
0.210.01-0.20
208717.5413.36-4.18
----
0.210.01-0.20
208817.5413.36-4.17
----
0.210.01-0.20
208917.5513.36-4.18
----
0.210.01-0.20
209017.5713.36-4.20
----
0.210.01-0.20
209117.6013.37-4.23
----
0.210.01-0.20
209217.6413.37-4.27
----
0.210.01-0.20
209317.6913.37-4.31
----
0.210.01-0.20
209417.7413.37-4.36
----
0.210.01-0.20


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 16.72% 13.82% -2.91%
2035
0.13% 0.01% -0.12%

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