Description of Proposed Provision:
B1.6 (2027): Progressive price indexing (30th percentile) of PIA factors beginning with individuals newly eligible for OASI benefits in 2027: Create a new bend point at the 30th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 30th percentile and below. Reduce the 32 and 15 percent factors above the 30th percentile such that the initial benefit for a worker with AIME equal to the taxable maximum grows by inflation rather than the growth in the SSA average wage index. Disabled workers are: (a) not affected prior to normal retirement age; and (b) subject to a proportional reduction in benefits, based on the worker's years of disability, upon conversion to retired-worker beneficiary status.

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
201813.8112.64-1.17
288
0.000.000.00
201913.9512.87-1.08
272
0.000.000.00
202014.1212.89-1.23
256
0.000.000.00
202114.2712.92-1.35
239
0.000.000.00
202214.4412.95-1.49
223
0.000.000.00
202314.6212.97-1.66
206
0.000.000.00
202414.8012.99-1.81
188
0.000.000.00
202514.9813.01-1.98
171
0.000.000.00
202615.1613.13-2.02
154
0.000.000.00
202715.3613.15-2.21
137
-0.00-0.000.00
202815.5813.17-2.41
120
-0.00-0.000.00
202915.7913.19-2.60
104
-0.00-0.000.00
203015.9713.20-2.77
87
-0.01-0.000.01
203116.1413.21-2.93
69
-0.02-0.000.01
203216.2913.23-3.07
51
-0.03-0.000.02
203316.4113.24-3.18
33
-0.04-0.000.04
203416.5113.24-3.26
15
-0.06-0.000.05
203516.5713.25-3.32
----
-0.08-0.000.08
203616.6113.25-3.36
----
-0.11-0.010.10
203716.6413.26-3.38
----
-0.14-0.010.13
203816.6413.26-3.38
----
-0.18-0.010.17
203916.6113.26-3.35
----
-0.22-0.010.21
204016.5713.26-3.31
----
-0.26-0.020.25
204116.5013.26-3.25
----
-0.31-0.020.29
204216.4213.25-3.17
----
-0.36-0.020.34
204316.3213.25-3.08
----
-0.41-0.020.39
204416.2313.24-2.98
----
-0.47-0.030.44
204516.1313.24-2.89
----
-0.53-0.030.50
204616.0413.23-2.80
----
-0.59-0.040.56
204715.9513.23-2.72
----
-0.66-0.040.62
204815.8513.22-2.63
----
-0.72-0.040.68
204915.7613.22-2.54
----
-0.79-0.050.75
205015.6813.22-2.46
----
-0.87-0.050.81
205115.5913.21-2.38
----
-0.94-0.060.88
205215.5213.21-2.31
----
-1.02-0.060.95
205315.4513.21-2.24
----
-1.09-0.071.03
205415.3913.20-2.19
----
-1.17-0.071.10
205515.3313.20-2.13
----
-1.25-0.081.18
205615.2913.20-2.09
----
-1.34-0.081.26
205715.2413.20-2.05
----
-1.42-0.091.34
205815.2113.20-2.01
----
-1.51-0.091.42
205915.1713.19-1.97
----
-1.59-0.101.50
206015.1313.19-1.94
----
-1.68-0.101.58
206115.1013.19-1.91
----
-1.76-0.111.65
206215.0713.19-1.88
----
-1.84-0.111.73
206315.0413.19-1.85
----
-1.93-0.121.81
206415.0113.19-1.82
----
-2.01-0.121.89
206514.9813.19-1.79
----
-2.09-0.131.96
206614.9613.19-1.77
----
-2.17-0.132.04
206714.9313.19-1.75
----
-2.25-0.142.11
206814.9113.19-1.73
----
-2.33-0.142.19
206914.8913.18-1.71
----
-2.41-0.152.27
207014.8713.18-1.69
----
-2.49-0.152.34
207114.8513.18-1.66
----
-2.57-0.162.42
207214.8213.18-1.64
----
-2.65-0.162.49
207314.7913.18-1.61
----
-2.73-0.172.56
207414.7513.18-1.57
----
-2.80-0.172.63
207514.7113.18-1.53
----
-2.88-0.182.70
207614.6613.17-1.49
----
-2.95-0.182.77
207714.6113.17-1.44
----
-3.02-0.182.83
207814.5513.17-1.38
----
-3.08-0.192.89
207914.4813.16-1.31
----
-3.14-0.192.95
208014.4113.16-1.25
----
-3.20-0.203.00
208114.3313.16-1.18
----
-3.26-0.203.06
208214.2613.15-1.11
----
-3.31-0.203.11
208314.1913.15-1.04
----
-3.37-0.213.16
208414.1213.14-0.98
----
-3.42-0.213.21
208514.0613.14-0.92
----
-3.48-0.213.26
208614.0013.13-0.86
----
-3.53-0.223.31
208713.9413.13-0.81
----
-3.59-0.223.37
208813.9013.13-0.77
----
-3.65-0.223.42
208913.8613.13-0.74
----
-3.71-0.233.48
209013.8313.12-0.70
----
-3.77-0.233.54
209113.8013.12-0.68
----
-3.83-0.233.60
209213.7813.12-0.66
----
-3.90-0.243.66
209313.7613.12-0.64
----
-3.97-0.243.72


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
2018-2092 15.40% 13.77% -1.63%
2034
-1.29% -0.08% 1.21%

1 Under current law, the year of Trust Fund reserve depletion is 2034.
Based on Intermediate Assumptions of the 2018 Trustees Report.