Detailed Single Year Tables
Description of Proposed Provision:
E2.4: Eliminate the taxable maximum for years 2032 and later (phased in 2026-2032), and apply full 12.4 percent payroll tax rate to all earnings. Provide benefit credit for earnings above the current-law taxable maximum that are subject to the payroll tax, using a secondary PIA formula. This secondary PIA formula involves: (1) an "AIME+" derived from annual earnings from each year after 2025 that were in excess of that year's current-law taxable maximum; (2) a new bend point equal to $10,245 in 2026, indexed by wages after 2026; and (3) formula factors of 3 percent and 0.25 percent below and above the new bend point, respectively.
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 |
|||
2025 | 15.15 | 12.80 | -2.35 | 169 | 0.00 | 0.00 | 0.00 | ||
2026 | 15.29 | 13.39 | -1.89 | 149 | 0.00 | 0.36 | 0.36 | ||
2027 | 15.48 | 13.81 | -1.67 | 133 | -0.00 | 0.73 | 0.73 | ||
2028 | 15.59 | 14.20 | -1.39 | 120 | -0.00 | 1.09 | 1.09 | ||
2029 | 15.69 | 14.58 | -1.11 | 109 | -0.00 | 1.45 | 1.45 | ||
2030 | 15.80 | 14.95 | -0.84 | 100 | -0.00 | 1.80 | 1.80 | ||
2031 | 15.91 | 15.33 | -0.59 | 93 | 0.00 | 2.14 | 2.14 | ||
2032 | 16.01 | 15.69 | -0.32 | 88 | 0.01 | 2.49 | 2.48 | ||
2033 | 15.87 | 15.75 | -0.12 | 86 | -0.20 | 2.50 | 2.70 | ||
2034 | 16.12 | 15.77 | -0.35 | 84 | -0.02 | 2.50 | 2.53 | ||
2035 | 16.21 | 15.78 | -0.43 | 82 | -0.02 | 2.50 | 2.52 | ||
2036 | 16.31 | 15.79 | -0.52 | 79 | -0.02 | 2.50 | 2.52 | ||
2037 | 16.39 | 15.80 | -0.60 | 76 | -0.02 | 2.50 | 2.52 | ||
2038 | 16.47 | 15.81 | -0.66 | 73 | -0.02 | 2.51 | 2.53 | ||
2039 | 16.53 | 15.82 | -0.71 | 69 | -0.02 | 2.51 | 2.53 | ||
2040 | 16.58 | 15.82 | -0.76 | 65 | -0.03 | 2.51 | 2.53 | ||
2041 | 16.62 | 15.83 | -0.79 | 61 | -0.03 | 2.51 | 2.54 | ||
2042 | 16.64 | 15.83 | -0.81 | 57 | -0.03 | 2.51 | 2.54 | ||
2043 | 16.67 | 15.84 | -0.84 | 53 | -0.04 | 2.51 | 2.54 | ||
2044 | 16.70 | 15.84 | -0.87 | 48 | -0.04 | 2.51 | 2.55 | ||
2045 | 16.73 | 15.84 | -0.89 | 43 | -0.04 | 2.51 | 2.55 | ||
2046 | 16.76 | 15.85 | -0.91 | 38 | -0.04 | 2.51 | 2.55 | ||
2047 | 16.80 | 15.85 | -0.94 | 33 | -0.04 | 2.51 | 2.55 | ||
2048 | 16.84 | 15.86 | -0.98 | 28 | -0.04 | 2.51 | 2.55 | ||
2049 | 16.88 | 15.86 | -1.02 | 23 | -0.04 | 2.51 | 2.55 | ||
2050 | 16.93 | 15.87 | -1.06 | 17 | -0.04 | 2.51 | 2.55 | ||
2051 | 16.98 | 15.87 | -1.10 | 11 | -0.04 | 2.51 | 2.55 | ||
2052 | 17.04 | 15.88 | -1.16 | 5 | -0.04 | 2.51 | 2.55 | ||
2053 | 17.10 | 15.89 | -1.22 | — | -0.04 | 2.51 | 2.55 | ||
2054 | 17.18 | 15.89 | -1.28 | — | -0.04 | 2.51 | 2.55 | ||
2055 | 17.26 | 15.90 | -1.36 | — | -0.04 | 2.52 | 2.55 | ||
2056 | 17.35 | 15.91 | -1.44 | — | -0.04 | 2.52 | 2.55 | ||
2057 | 17.44 | 15.92 | -1.52 | — | -0.03 | 2.52 | 2.55 | ||
2058 | 17.54 | 15.93 | -1.61 | — | -0.03 | 2.52 | 2.55 | ||
2059 | 17.63 | 15.94 | -1.70 | — | -0.03 | 2.52 | 2.55 | ||
2060 | 17.72 | 15.94 | -1.77 | — | -0.03 | 2.52 | 2.55 | ||
2061 | 17.80 | 15.95 | -1.85 | — | -0.02 | 2.52 | 2.54 | ||
2062 | 17.87 | 15.96 | -1.91 | — | -0.02 | 2.52 | 2.54 | ||
2063 | 17.95 | 15.96 | -1.98 | — | -0.02 | 2.52 | 2.54 | ||
2064 | 18.02 | 15.97 | -2.05 | — | -0.01 | 2.52 | 2.54 | ||
2065 | 18.09 | 15.98 | -2.11 | — | -0.01 | 2.52 | 2.53 | ||
2066 | 18.16 | 15.99 | -2.18 | — | -0.01 | 2.53 | 2.53 | ||
2067 | 18.24 | 15.99 | -2.24 | — | -0.00 | 2.53 | 2.53 | ||
2068 | 18.31 | 16.00 | -2.31 | — | 0.00 | 2.53 | 2.53 | ||
2069 | 18.39 | 16.01 | -2.38 | — | 0.01 | 2.53 | 2.52 | ||
2070 | 18.47 | 16.01 | -2.45 | — | 0.01 | 2.53 | 2.52 | ||
2071 | 18.54 | 16.02 | -2.52 | — | 0.01 | 2.53 | 2.52 | ||
2072 | 18.62 | 16.03 | -2.59 | — | 0.02 | 2.53 | 2.51 | ||
2073 | 18.69 | 16.03 | -2.66 | — | 0.02 | 2.53 | 2.51 | ||
2074 | 18.77 | 16.04 | -2.72 | — | 0.02 | 2.53 | 2.51 | ||
2075 | 18.83 | 16.05 | -2.78 | — | 0.03 | 2.53 | 2.51 | ||
2076 | 18.88 | 16.05 | -2.83 | — | 0.03 | 2.53 | 2.50 | ||
2077 | 18.93 | 16.06 | -2.87 | — | 0.03 | 2.54 | 2.50 | ||
2078 | 18.96 | 16.06 | -2.90 | — | 0.04 | 2.54 | 2.50 | ||
2079 | 18.98 | 16.06 | -2.92 | — | 0.04 | 2.54 | 2.50 | ||
2080 | 19.00 | 16.07 | -2.93 | — | 0.04 | 2.54 | 2.50 | ||
2081 | 19.00 | 16.07 | -2.93 | — | 0.04 | 2.54 | 2.50 | ||
2082 | 19.00 | 16.07 | -2.93 | — | 0.04 | 2.54 | 2.49 | ||
2083 | 18.98 | 16.07 | -2.91 | — | 0.05 | 2.54 | 2.49 | ||
2084 | 18.96 | 16.07 | -2.89 | — | 0.05 | 2.54 | 2.49 | ||
2085 | 18.92 | 16.07 | -2.85 | — | 0.05 | 2.54 | 2.49 | ||
2086 | 18.87 | 16.07 | -2.81 | — | 0.05 | 2.54 | 2.49 | ||
2087 | 18.82 | 16.06 | -2.75 | — | 0.05 | 2.54 | 2.49 | ||
2088 | 18.76 | 16.06 | -2.70 | — | 0.05 | 2.54 | 2.49 | ||
2089 | 18.69 | 16.06 | -2.64 | — | 0.05 | 2.54 | 2.49 | ||
2090 | 18.63 | 16.05 | -2.58 | — | 0.05 | 2.54 | 2.49 | ||
2091 | 18.57 | 16.05 | -2.52 | — | 0.05 | 2.54 | 2.49 | ||
2092 | 18.52 | 16.05 | -2.47 | — | 0.05 | 2.54 | 2.49 | ||
2093 | 18.47 | 16.04 | -2.43 | — | 0.05 | 2.55 | 2.49 | ||
2094 | 18.44 | 16.04 | -2.40 | — | 0.05 | 2.55 | 2.49 | ||
2095 | 18.41 | 16.04 | -2.37 | — | 0.05 | 2.55 | 2.49 | ||
2096 | 18.40 | 16.04 | -2.35 | — | 0.05 | 2.55 | 2.49 | ||
2097 | 18.38 | 16.04 | -2.34 | — | 0.05 | 2.55 | 2.49 | ||
2098 | 18.38 | 16.04 | -2.34 | — | 0.05 | 2.55 | 2.49 | ||
2099 | 18.39 | 16.04 | -2.35 | — | 0.06 | 2.55 | 2.49 | ||
2100 | 18.41 | 16.04 | -2.36 | — | 0.06 | 2.55 | 2.49 |
Summarized Estimates
Proposal | Change from Current Law | ||||||||
---|---|---|---|---|---|---|---|---|---|
Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
2025-2099 | 17.61% | 16.15% | -1.46% | 2052 | -0.00% | 2.37% | 2.37% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2034. |
Based on Intermediate Assumptions of the 2025 Trustees Report.